New Delhi, Nov. 25 -- During a financial emergency, you took a five-year personal loan. You paid all instalments on time and successfully closed the loan on time. You are feeling proud of your achievement. However, after repaying the loan, did you notice a drop in your credit score?

Your credit score calculation depends on factors such as timely repayments, credit utilisation ratio, credit mix, credit age, number of credit applications made within a specified time period, among others. After repaying the personal loan, some of these factors may impact the credit score. In this article, we will understand the impact of personal loan closure on your credit score.

One of the factors considered for calculating an individual's credit score i...