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Factors affecting your credit score

Bureau scoring models are proprietary, but the five ingredient buckets and their approximate weightings are widely disclosed. Understanding them lets you focus improvement effort where it actually matters.

Last updated: 15 June 2025

The five factors

FactorApprox weightWhat to do
Payment history~35%Never miss an EMI or card due
Credit utilisation~30%Keep card usage below 30% of limit
Length of credit history~15%Don't close your oldest card
Credit mix~10%A blend of secured + unsecured is best
New credit enquiries~10%Space out applications; avoid bursts

Payment history in depth

A single 30+ day late payment can knock 50-80 points off your score. A default (90+ days) can drop the score by 150 points and remain on the report for 7 years even after settlement.

Credit utilisation in depth

Utilisation is calculated on your statement date, not the due date. So paying the full bill before the statement is generated (rather than just before the due date) can keep reported utilisation low, boosting the score.

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Factors That Affect Your Credit Score in India | FinancePaisa