Good credit scores, given all other parameters, ideal translate into competitive rates and higher sanction limits. Residual credit card debtThe lure of plastic is enormous but accumulated, unpaid overextended credit is extremely detrimental to one's credit score. If one has a tendency to max the credit card, adding on cards to your wallet may be unwise. All other customer parameters being equal, it has been observed that customers with a mix of credit, such as education loan, credit card, secured loan, etc, tend to be less risky. The more you are able to restrict your credit usage as per the allotted limit, the better it is for your credit score.

Source: dna February 06, 2019 01:07 UTC