Several financial habits can lower your CRIF credit score:
- Late or Missed Payments: Payment delays on loans or credit cards significantly impact your score.
- High Credit Utilization Ratio: Using more than 30% of your available credit limit can lower your score.
- Multiple Loan Applications: Too many credit inquiries in a short time indicate higher risk.
- Loan Defaults or Settlements: If you default on a loan or settle for a lower amount, your score drops.
- Closing Old Credit Cards: Closing an old credit card account reduces your credit history length, which can lower your score.
- Having Only One Type of Credit: A healthy mix of secured (home/business loans) and unsecured (credit cards/personal loans) credit helps maintain a balanced score.
To maintain a good credit score, always pay EMIs on time, limit credit usage, and avoid unnecessary loan applications.