New Delhi, Nov. 13 -- Understanding how credit scores work can be confusing, with plenty of mixed information floating around. In this interview with Mint, Bhushan Padkil, SVP and head-DTC business at credit information company TransUnion CIBIL, clears the air on what truly affects credit scores and how missed payments and multiple enquiries are viewed.

He busts the myths around factors that do not affect credit scores and highlights the right way to handle credit responsibly.

A credit score reflects how responsibly a person manages credit. The three key factors that can impact your score are:

Foremost, not paying bills on time. Making late payments or defaulting on your EMIs has a negative impact on your credit records. Second, buildi...