Understanding your credit score
The most important factor in your credit score is payment history. Set reminders or automate payments to ensure you never miss a due date.
Pay your bills on time
The most important factor in your credit score is payment history. Set reminders or automate payments to ensure you never miss a due date.
Keep credit utilisation low
Aim to use less than 30% of your available credit. If your credit limit is ₹1,00,000, try to keep your outstanding balance under ₹30,000 to maintain a healthy credit score.
Don’t close old accounts
Length of credit history matters. Keeping old bank accounts open, even if unused, helps improve the average age of your credit history.
Limit constant credit enquiries
Applying for too much credit in a short time can hurt your score. Space out credit card or loan applications to avoid multiple credit enquiries in a short period.
Diversify your credit mix
A healthy mix of credit types (loans, credit cards, etc.) shows lenders you can handle various forms of credit responsibly.
Slow and steady wins
Improving your credit score takes time and discipline. Consistently paying on time, managing debt, and making smart choices will gradually boost your score.
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