Your Credit Score

Lenders want to know: will you repay? They judge that with a credit score — a number built from your borrowing history (in India, from bureaus like CIBIL; in the US, scores such as FICO). A higher score means loans are easier to get and come at lower interest rates, which can save a lot of money over a lifetime. What builds a good score: paying every bill on time, not maxing out your cards, and keeping accounts over time. What hurts it: late payments, defaults, and constantly using your full credit limit. You don't need to borrow a lot — you need to handle a little responsibly and on time.