How scores are calculated

Your credit score is calculated using a variety of credit data from your credit report. Payment history (35%), amounts owed (30%), credit history duration (15%), new credit (10%), and credit mix (10%) are the five areas in which this information is split (10%).

When computing Score, what factors are taken into account?

Payment history (35%)

Any lender will want to know if you've paid your previous credit bills on time. This helps a lender determine how much risk it is willing to assume when giving loans. This is the most important factor in determining a credit score.

Amounts owed (30%)

Having credit accounts and owing money does not always mean that you are a high-risk borrower with a poor credit score. However, if you're using a big portion of your available credit, this might indicate that you're overextended, which banks may interpret as a higher risk of default.

Length of credit history (15%)

A longer credit history is generally beneficial to your credit ratings, but it is not essential for a decent credit score.

  • Your credit ratings are based on the following factors:

  • How long your credit accounts have been open, including the oldest account's age, the newest account's age, and the average age of all your accounts

  • How long have specific credit accounts been open?

  • When was the last time you utilised particular accounts?

Credit mix (10%)

Your credit score will evaluate the combination of credit cards, retail accounts, instalment loans, financing business accounts, and home loans. Don't worry, you don't need one of each.

New credit (10%)

According to studies, creating a large number of credit accounts in a short period of time involves a higher risk, particularly for people who do not have a long credit history.