Debts can destroy your credit score !

There are some differences in how the different types of debts affect your credit score. let us understand how :

Mortgages
Value of your house less than the mortgage value? Your credit score won’t be affected as long as you keep up with the payments. Your credit report won’t have the value of your house listed on the report, so value of your house being lower than the mortgage value won’t be an issue. Excellent credit can be still maintained even if you are financing home with hefty loans, provided that you make payments on time. But if you are having multiple mortgages with pending balances, then they are likely to impact your score.

Auto Loans
Your payment history is more important than the amount you owe on your auto loans. If you have a habit of buying too many cars or have multiple auto loans with pending balances on your CIBIL report then your credit scores can be impacted. But even then your payment history will have more importance than the amount of debt virtually at all times.

Credit cards
These loans are revolving accounts, not like installment accounts. Hence, they are treated differently to some extent from the ones mentioned above. While the number of revolving accounts you have with unpaid balances and the amount you owe are taken into consideration, the available credit you use is the most important factor. The credit score will have a look at your limits and then compare then to your current balances as reported by your lenders. This ratio is known as your 
credit utilization ratio.

To manage your debts and improving your credit score just consult credit specialists at www.cibilconsultants.com

Source: Secondary