People often ask this question !

Your Credit history fundamentally calculates your credit score. All your previous loans and credit card transactions are used by credit bureaus to calculate scores. If the lender uses CIBIL, then a CIBIL score of 750 and above is considered good.

To maintain a good credit score, you need to follow these rules:

• Make your credit payments timely and regularly. All your EMIs need to be paid before the due date. All your credit card bills should be at least on a payment plan. Defaulting on any such payments will lead your credit score to plummet.
• Maintain your credit utilisation percentage to 30%: This means that the spending on your credit card should be maintained at 30% of the credit limit.
• Don’t cancel old credit cards: If you pay their bills on time, your old credit cards only make your credit history richer.
• Follow your CIBIL report continuously. Your credit score not only decides your interest on a personal loan but also expedites the loan approval process.

Hope my answer clarifies your doubt.