Five effective ways to build a credit score above 750, according to Experian India's Manish Jain

Having a healthy credit score is a must for availing of cheaper loans. It reflects a borrower’s credit behaviour built over time through repayment patterns, credit utilisation, and responsible borrowing.

Generally, a credit score above 750 is considered good. Banks reward borrowers with credit scores over 750 with loans at lower interest rates. However, many borrowers fail to maintain this credit score.

Although there are various reasons why a person's credit score might dip, it is possible to increase it through sustained effort and financial discipline.

“Improving a score from 600 to 750 is entirely possible, but it requires sustained effort and financial discipline. The timeline depends on individual circumstances, but the roadmap is clear,” says Manish Jain, Country Managing Director, Experian India.

Jain suggests the following five ways to effectively improve your credit score:

Ensure timely repayment of loan EMIs and credit card bills

Timely repayment is one of the most critical factors influencing an individual’s credit score. Whether it is a secured loan or an unsecured loan, missed or delayed repayments can significantly impact a borrower’s credit profile.

Lenders may view such behaviour as a sign of poor creditworthiness or a lack of repayment intent, which can, in turn, affect future access to loans.

Additionally, the frequency of missed or delayed repayments has a compounding effect on credit scores — the more often they occur, the higher the impact.

Repay missed payments promptly

If a payment is missed, you should repay the amount due promptly to limit the damage. Over time, consistent repayments help restore creditworthiness and gradually improve the score.

Regularly check credit reports for erroneous entries or discrepancies

Unauthorised accounts or transactions, if undetected, can adversely impact a credit profile. Therefore, you should regularly check your credit reports, which will help you identify the root cause behind a low credit score.

Regular monitoring of credit reports not only helps in checking your progress but also in detecting and correcting any discrepancies or unauthorised activities immediately.

In case you come across some erroneous entries or discrepancies in your credit report, raise a complaint with the credit bureau for correction.

Avoid taking too many loans in a short time

You should avoid availing multiple loans or cards in a short span of time as it often lead to repayment stress and eventual default and negative impact on your credit score.

Repeated payment defaults can prompt lenders to reduce credit limits, sanctioned loan amounts, increase the interest rate of new loans, or even reject new credit applications altogether. In some cases, lenders may also restrict access to existing credit facilities, such as credit cards.

Avail loans and credit cards only if necessary

Applying for a loan or card does not impact your credit score. However, when you take an unnecessary loan, it might become difficult to make repayments on time. Therefore, you should avail of only that much loan amount which is in line with your repayment ability.