ULTIMATE GUIDE TO MAINTAINING GOOD CREDIT PROFILE

Having a mix of credit products can be good for your score but if you don't need one, don't apply

- SUMANTA MANDAL

A good credit score is vital to securing a loan and negotiating a lower interest rate. Building a good score takes time and depends on several factors. However, not all these factors affect your credit score equally.

Your repayment history matters much more than the number of hard inquiries on your credit report. A hard inquiry (hard pull or hard credit check) is when a lender or financial institution reviews your credit report to assess your creditworthiness. These usually occur when you apply for a new credit card, loan, or other form of credit. Here's a rundown of the most important factors that affect your credit score and what you can do to improve it.

Repayment history: This is one of the main factors that affect your credit score, and it's pretty straightforward. The more often you pay on time, the better your credit score. Even a single late payment can damage your score. If you have several credit cards or loans, it's a good idea to set up auto-payments. Having more credit cards can help boost your credit score because of this factor. For example, if you have 20 credit cards, 20 on-time payments will be recorded on your credit report every month, even if you don't use all of them. Just ensure there is no late payment.