What Types of Information Can Impact Your Credit Scores?

What Types of Information Can Impact Your Credit Scores?

The two most crucial factors that affect your credit score is your repayment of the loan and how timely you pay your EMIs and card dues. If you are a month late in paying your dues, then your credit score might drop by 80 points. Next up is credit inquiries. They can affect your credit score in a major way. Typically, there are two kinds of credit inquiries, one is the soft inquiry and the other is hard inquiry. Soft Inquiries are harmless to your credit score but the hard inquiries that are often done by lenders before lending money to you can bring a change in your credit score even if you do not get the loan in the end.
Opening new credit accounts can or taking new loans also affect but it can be fixed with regular and timely repayments. Lenders evaluate the credibility of the borrower at their own discretion. They may use whichever scores they’d like and measure those scores on a scale that is unique to them. It is also possible that they may not even consider credit scores at all but just the contents of the credit report.

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