How much of positive impact would credit cards have on my credit score?

[Hanush Kumar]

My credit score on Experian is 784, which falls under the "good" band. I'm using credit cards to further improve my credit score. Does it make sense to improve my credit score further?

For example, let's assume my credit score improves to 850 in 10-15 years. How much of a difference or impact would it have on the credit interest percentage, when I avail a durable loan?

Also, in future, if I'm opting for a business loan (not consumer loans), what kind of benefits or credit interest percentage I would get?

 

[Skylar]

My credit score on Experian is 784, which falls under the "good" band. I'm using credit cards to further improve my credit score. Does it make sense to improve my credit score further?

For example, let's assume my credit score improves to 850 in 10-15 years. How much of a difference or impact would it have on the credit interest percentage, when I avail a durable loan?

Also, in future, if I'm opting for a business loan (not consumer loans), what kind of benefits or credit interest percentage I would get?

Improving your credit score from 784 to 850 can help you secure lower interest rates on loans, but the difference might be minimal since 784 is already a good score.

For durable loans, the interest rate reduction might not be significant. However, for business loans, a higher credit score can lead to better terms and lower interest rates.

- It is important to note that banks prioritize the CIBIL score over Experian and other credit scores.

Achieving a CIBIL score of 850 is challenging. You need to have a diverse mix of loans, maintain low credit utilization, and make timely payments. This can help you reach a score of 800-815.

However, to achieve a score of 850, you need a longer credit history, which will develop over several years.

 

[Hanush Kumar]

My credit history already spans for more than 5 years.

My credit vision (Transunion Cibil) score on October 2023 was 772. It was checked for auto loan purpose and I'm paying the EMIs on time.

Now, when I checked Experian, my score is 784. When logged in to the CIBIL portal, it is showing as 748. Which one should I focus on?

 

[Skylar]

My credit history already spans for more than 5 years.

My credit vision (Transunion Cibil) score on October 2023 was 772. It was checked for auto loan purpose and I'm paying the EMIs on time.

Now, when I checked Experian, my score is 784. When logged in to the CIBIL portal, it is showing as 748. Which one should I focus on?

Focus on both make both of them above 790

 

[launchcraft]

do

My credit history already spans for more than 5 years.

My credit vision (Transunion Cibil) score on October 2023 was 772. It was checked for auto loan purpose and I'm paying the EMIs on time.

Now, when I checked Experian, my score is 784. When logged in to the CIBIL portal, it is showing as 748. Which one should I focus on?

download Onescore from playstore and check both your CIBIL and Experian score with all your details like enquiries, payment history, credit utilization ratio, etc.
There you can keep a track on both.