Credit Score: plays a crucial role in your financial journey. Whether you’re applying for a loan, credit card, or even renting a home, lenders often check your score through agencies like CIBIL, Experian, or Equifax. A higher score (750+) increases your chances of approval and helps you secure better interest rates.
Table of Contents
7 powerful tips for Credit Score
1️⃣ Pay Your Bills on Time – Always: Payment history is the biggest factor affecting your credit score.
✔️ Set reminders
✔️ Use auto-debit facility
✔️ Avoid missing EMIs or credit card dues
Even one late payment can negatively impact your score.
2️⃣ Maintain a Low Credit Utilization Ratio: Experts recommend keeping your credit usage below 30% of your total limit. For example, if your credit card limit is ₹1,00,000, try not to use more than ₹30,000 regularly. High utilization signals financial stress to lenders.
3️⃣ Avoid Multiple Loan Applications: Applying for multiple loans or credit cards within a short period leads to multiple hard inquiries, which can reduce your score. Instead, compare offers carefully and apply only when necessary.
4️⃣ Check Your Credit Report Regularly: Mistakes in your credit report can lower your score unfairly. 📌 Check for:
- Incorrect personal details
- Closed loans shown as active
- Wrong late payment entries
You are entitled to one free credit report annually from credit bureaus in India.
5️⃣ Don’t Close Old Credit Cards Too Quickly: Older credit accounts increase your credit history length, which positively impacts your score. If a card has no annual fee, consider keeping it active with small transactions.
6️⃣ Diversify Your Credit Mix: A healthy combination of secured loans (home/car loan) and unsecured loans (credit cards/personal loans) improves your profile. However, only take loans if genuinely required — never borrow just to build credit.
7️⃣ Settle Outstanding Dues Strategically: If you have unpaid dues, prioritize clearing them fully instead of settling for partial payments. “Settled” status can negatively affect your creditworthiness.
Final Thoughts on Credit Score
Improving your credit score is not an overnight process. It requires discipline, smart financial habits, and patience. With consistent efforts, you can gradually build a strong credit profile that opens doors to better financial opportunities.
Stay financially smart with more expert insights on BuzinIndia.com 💼✨