Top 5 Factors That Determine Your CIBIL Score

Understanding the factors affecting CIBIL score can help you maintain a healthy credit profile and achieve the best credit score in India for easier loan approvals. Your CIBIL score is calculated based on the following key components:

Payment History (35%)

Your payment behavior is the most important factor. Timely EMI and credit card bill payments boost your score, while missed or late payments negatively impact it. If you’re wondering which of the following does not impact your CIBIL score, answer payment history definitely does.

Credit Utilization (30%)

This shows how much of your credit limit you are using. To maintain a good CIBIL score range, keep your credit utilization ratio below 30%.

Length of Credit History (15%)

A longer and consistent borrowing record builds lender trust. It plays a vital role in how to improve CIBIL score India if you manage credit responsibly over time.

Credit Mix (10%)

Having both secured (like home/auto loans) and unsecured credit (like credit cards) reflects strong credit management. A balanced credit mix supports a healthy score.

New Credit (10%)

Too many credit applications lead to multiple hard inquiries, which may lower your score. Apply for new credit only when needed. This helps answer which CIBIL score is good ,the fewer hard pulls, the better your chances of staying in the good range.

Maintaining discipline in every category is important because all of these metrics influence your creditworthiness, and none should be ignored while improving your financial profile.