Credit Score, April 25 -- Whether you are applying for a car loan, home loan, personal loan, or even a credit card, commercial banks tend to check your creditworthiness. This is measured by a three-digit number between 300 and 900, known as a credit score.

Numerous factors influence your credit score, including your payment history, overall credit mix, and credit utilisation ratio (CUR). It is not determined by avoidable factors such as whether you hold a credit card or not.

There are several misconceptions about credit scores, particularly among Gen Z and youngsters. Here, we aim to bust some of these common beliefs.

I. Credit scores reflect how much debt you have: While the amount of debt does matter, factors such as your credit util...