Interesting Factors On How Credit Limit Impact Your Credit Score

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Interesting Factors On How Credit Limit Impact Your Credit Score

Credit score is a reflection of your past credit behavior and many aspects influence it. The factors that impact credit score calculation are repayment history, credit utilization, credit mix, loan tenure and credit enquiries. Credit limits are not amongst the five factors that are considered when calculating the credit rating so one would assume they have no impact on your credit score, however that is not the case. Your credit limit does have an impact on the score, although indirectly which we explain below.

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