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Having checked your credit score over a period time, you probably understand how the score varies over time. With pleasant increments and awful lows, the score tends to differ. You should know that the calculation system for delivering the credit score is quite complex, making the precise deciding factors for score variations a little tough to understand. The credit score comes from the data in your credit report. This means that when your score drops dramatically, it's mostly due to variables in the information stated on your report. This does not necessarily mean a major change, before your credit score fell.
When you spot any of these on your credit report, we advise you take care of it as soon as possible. Mostly because this is a representation of irresponsibility. Which can eventually reflect badly on your finance management skills.
As can be understood, various unassuming factors can cause a drop in your credit scores. Such factors range from credit utilization and derogatory marks to the less important factors such as hard inquiries. In all situations, having a good credit history comes from regular financial responsibility. While you are making all payments on time, keeping your credit utilization within 30 percent, and solve discrepancies on your credit reports, you are already doing well.
How does it affect my score if I am late with EMI Payments?
You have to remember that paying your credit card bills is not enough. You have to be paying them on time is what is really important. When you miss the due dates too often, you will negatively affect your score.
What happens if I use the complete Credit Card limit?
You can use the whole of it and pay the bills timely. Yet, while you keep on utilizing the complete limit of your credit card on each occasion, you will be damaging your credit score, simply because of the credit utilization ratio being skewed.
Can I apply for new credit cards from the market?
When you apply for a credit line too frequently, you lose score on the credit report. This is largely owing to the fact that multiple applications make you look credit hungry for a banking institution.
What if I am new to credit?
An important determining factor for your credit score is the expanse of your credit history. Old and healthy credit history means that you will have a high credit score. Short histories mean lower credit score.
What if there is an error in Report?