Your credit score is a number that represents your creditworthiness - essentially, how likely you are to repay borrowed money. Understanding how credit scores work can help you build a strong financial reputation and access better credit terms.
What is a Credit Score?
A credit score is calculated based on your financial behavior, particularly how you handle borrowed money. On Kopaduka, your score reflects your history of credit purchases and repayments with participating merchants.
How is Your Score Calculated?
Several factors influence your credit score:
- Payment History (40%): Do you pay on time? This is the biggest factor.
- Amount Owed (30%): How much credit are you using compared to your limits?
- Credit History Length (15%): How long have you been using credit?
- Payment Frequency (15%): How regularly do you make payments?
Why Does Your Score Matter?
A good credit score can:
- Give you access to higher credit limits
- Make more merchants willing to offer you credit
- Potentially get you better terms on larger purchases
Tips to Improve Your Score
- Always pay on time: Even if you can only make partial payments, pay something before the due date
- Don't max out your credit: Try to use less than 50% of your available credit
- Build history: Consistent, responsible use over time improves your score
- Check your score regularly: Stay informed about where you stand
Checking Your Score on Kopaduka
You can view your credit score anytime in your Kopaduka customer dashboard. We also provide personalized tips on how to improve your score based on your specific history.
Building good credit takes time, but the benefits are worth the effort. Start today by ensuring all your current credit obligations are paid on time!