Credit or CIBIL score is a 3 digit number in between 300 and 900 that is referred to by financial institutions to gauge the financial stability of an individual or a business. Of several factors that affect CIBIL score, few are reliable and completely under the control of individuals.

Repayment of EMIs and credit card payments from the beginning is one of the most assured ways of maintaining the CIBIL score of any individual and even improve it over time.

The percentage of available credit is the next most important factor in determining the credit score. Typically, maintaining an average of 6% is considered stable. Another crucial factor taken into account is the time duration for which a credit card account has been active, along with the last date of transaction.

While several accounts help in maintaining a healthy credit utilization ratio, suddenly opting for multiple accounts is read as a sign of financial distress. Finally, regularly clearing EMIs over a lengthy period of time also aids the cause.

The effects of delay in repayment further display the crucial nature of timely repayments of both loan EMIs and creditcards. With delay, the CIBIL score goes down which further leads to trouble in loan approval. Similarly, with falling credit score and rising risk factor for lenders, the interest rates go up too. Resultantly, it is the best option to repay loan EMIs and credit cards from the beginning to maintain and improve credit score over time.