Welcome to another episode of Fantastic Females, where we embark on a quest for financial knowledge and empowerment. I’m your host, Kalyani, and joining me is Rupali, your friendly finance expert. Today’s episode of Money Matters focuses on an important question: What factors impact your credit score? We dive into this topic and break it down into easily digestible bits. So, let’s get started! Firstly, we define the credit score as a numerical assessment of your creditworthiness, which banks use to determine how risky it is to lend you money. It’s a crucial number that affects various aspects of borrowing, such as car loans, mortgages, personal loans, and business loans. We begin by discussing the primary factor that influences your credit score: payment history. This accounts for 60% of the score and evaluates whether you’ve paid your bills and debts on time. Remember, it’s not just about how much you borrow, but also about when and how promptly you repay it. So, as long as you make timely payments, don’t be afraid of using credit cards. Speaking of credit cards, we share our own experiences and highlight how they can be beneficial. Building a track record of responsible credit card usage early on is essential. It demonstrates your ability to manage borrowed funds and establishes a level of trust with banks. However, be mindful of not going overboard and accumulating multiple credit cards. Stick to a manageable number and pay off your balances on time. We also touch upon the impact of new credit. While having a diverse range of borrowing, like different types of loans, can be seen as positive, acquiring too many new loans within a short period may raise concerns. It’s important to strike a balance and ensure you can comfortably afford and manage your debt. To gauge your credit score in the UAE, we recommend using the AECB Credit History Report app. By logging in with your UAE pass, you can access your credit report, which provides the numerical score. Typically, credit scores range up to 800, with anything above 680 considered good and above 700 or 730 considered excellent. Lastly, we emphasize two key takeaways. First, make sure to pay your debts on time, as it significantly impacts your credit score. Second, review your credit report periodically to ensure its accuracy and dispute any discrepancies with the relevant banks. We hope this episode has shed light on the factors influencing your credit score and empowered you to make informed financial decisions. Remember to follow us on social media at Fintastic Females and share your feedback and reviews. Together, we’ll make your financial journey abundant and fulfilling. That’s a wrap for this episode of our financial adventure. Stay tuned for more valuable insights.