Your credit score is like a financial report card. A good score opens doors to cheaper loans, higher credit limits, and faster approvals. Here are seven quick ways to boost it.
1. Pay Bills on Time
Payment history makes up 35% of your score. Even one late payment hurts. Set reminders or autopay to never miss due dates.
2. Keep Credit Utilization Low
Use less than 30% of your available credit. If your limit is ₹1,00,000, spend under ₹30,000 monthly. High usage signals risk to lenders.
3. Don’t Close Old Accounts
The length of credit history matters. Keep your oldest cards open, even if you rarely use them.
4. Limit Hard Inquiries
Too many loan or card applications lower your score. Apply only when necessary.
5. Diversify Credit Types
A mix of credit cards, auto loans, and personal loans shows you can handle different forms of credit responsibly.
6. Check Reports Regularly
Errors are common. Review your credit report yearly and dispute mistakes. A single correction can raise your score quickly.
7. Negotiate with Lenders
If you missed payments, ask for a goodwill adjustment or repayment plan. Many lenders will help if you show intent to pay.
Conclusion:
Improving your credit score isn’t magic—it’s discipline. By paying on time, lowering debt, and being strategic, you can see results within months.