Key factors that affect Credit Score of students while staying in other countries

Ankit Mehra, Co-founder and CEO of GyanDhan talks about the key factors that affect the Credit Score of students while pursuing their higher education in countries abroad
What's your score?
What's your score?(Pic: EdexLive Desk)

The key factors that affect the credit score of students while staying in other countries include

1. Debt levels

When in debt
When in debt(Pic: EdexLive Desk)

High levels of debt relative to your credit limit or income can negatively impact your score. A few students tend to accumulate debt from several small-scale consumer loan applications, which can lead to a decline in their credit score.

2. New credit inquiries

Keep a check on it
Keep a check on it(Pic: EdexLive Desk)

Applying for multiple loans or credit cards in a short period can lower your score, as each application results in a credit inquiry that gets recorded.

3. Timely loan repayments

Time is of essence
Time is of essence (Pic: EdexLive Desk)

Consistently paying education loan installments or any other debts on time is crucial. Late or missed payments can significantly lower your credit score.

4. Credit card usage

Usage on point
Usage on point(Pic: EdexLive Desk)

Responsible usage of credit cards, such as keeping credit utilization low and paying off the balance in full each month, positively impacts the score.

5. Credit history length

Peek into the history
Peek into the history(Pic: EdexLive Desk)

The longer your credit history, the better it is for your score. Keeping accounts open and in good standing over time helps build a solid credit profile.

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