Having no debt means a perfect credit score
Your credit score isn’t solely determined by avoiding debt. It depends on how well you manage credit.
Having no credit history or limited credit history can make it hard for lenders to assess your creditworthiness, leading to a lower score. Factors like payment history, credit utilization, and credit mix affect your score.
Establish responsible credit habits and make timely payments. Maintaining a long credit history is crucial for achieving a strong credit score, even if you have no debt.
Read more about factors affecting your credit score and 8 important credit rules to follow here.
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