Payment history - 35% of your credit score is calculated on the basis of your payment history. general factors on the basis of which your credit score is calculated are mentioned below: a good credit score means that you are capable of handling the credit in the best possible manner, therefore, banks or financial institutions will consider offering you a credit card with a higher limit.Ī credit score is calculated differently by the various credit information bureaus. Higher credit card limits: a good credit score not only gets you the best of credit cards with attractive benefits or lower rate of interest on the loan you have applied for but also you are eligible for getting a higher loan amount. Lower interest rate: with a good credit score, you can enjoy the benefit of a lower rate of interest on the loan amount that you have applied for.Ĭredit cards with attractive benefits- you are offered credit cards with attractive benefits and rewards if you have a healthy credit score. moreover, the loan that you have applied for gets approved quickly and processing time is zero. Quicker loan approvals: applicants with a good credit score and long credit history are offered pre-approved loans. a good credit score means that you pay the bills or outstanding amount timely that leaves a good impression of yours on the banks or other financial institutions where you have applied for a loan. Improves your eligibility for loans: a good credit score improves your eligibility to get a loan faster. Listed down some of the important reasons due to which you must maintain a good credit score: Why is it important to maintain a good credit score?

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