2. 1. Outstanding Balance
• The outstanding loan balance is a significant factor
influencing your credit score.
• A high proportion indicates that you are not good
at managing your credit.
• It is better to maintain this ratio at around 20% to
30%.
3. 2. Repayment History
• Your repayment history conveys your inclination to
repay your loans on time.
• Lenders are not worried about a day or two of
delays.
• If the delay is more than a month, it sends the
warning signals
• It affects your credit score a great deal.
4. 3. Types of Credit (Secured vs. Unsecured)
• Various kinds of loans are Home Loans, mortgage
loans, Business Loans, Personal Loans, Credit Cards,
and so on.
• Lenders look for a healthy mix of accounts in both
the secured and unsecured categories.
• The focus is more on how you repay your unsecured
loans
5. 4. Your Loan History
• The report indicates whether you are new to credit
or have a sufficiently long history.
• New borrowers with credit history less than six
months get a rating of -1.
• The banks allow you to make monthly payments.
6. 5. New Recent Credit
• Refrain from making unnecessary applications for
Credit Cards and Personal Loans
• Repay all your loans on time and before the due
dates
• Utilize your Credit Cards wisely by maintaining the
CUR at around 25%.