1. Pay Your Bills On Time – Every Time
· Timely payments are the most important factor influencing your credit score.
· Missing due dates, even once, can negatively impact your score.
· Set up auto-pay or reminders for credit cards, loans, and utility bills to avoid delays.
2. Keep Your Credit Utilization Low
· Credit utilization is the percentage of your available credit you’re using.
· Experts recommend keeping it below 30% of your total credit limit.
· High utilization signals risk to lenders, lowering your credit score.
3. Avoid Applying for Too Many Loans or Cards at Once
· Every new credit application generates a hard inquiry, which can slightly reduce your score.
· Frequent applications suggest financial stress, which can worry lenders.
· Apply for credit only when necessary and space out applications over time.
4. Regularly Monitor Your Credit Report
· Check your credit report at least once every few months to spot errors or fraudulent activity.
· Correcting mistakes, like wrong late payments or incorrect balances, can quickly improve your score.
· You can request a free report annually from credit bureaus in India.
5. Maintain a Healthy Mix of Credit
· A combination of secured loans (like home loans) and unsecured credit (like credit cards) can positively influence your score.
· Lenders like to see that you can handle different types of credit responsibly.
6. Pay More Than the Minimum Due
· Paying only the minimum amount due on your credit card keeps you in debt longer and accumulates interest, which may hurt your score.
· Whenever possible, pay full statements or more than the minimum to reduce your balance faster.
7. Keep Old Credit Accounts Active
· The length of your credit history matters.
· Closing old accounts can shorten your credit history and negatively impact your score.
· Use older accounts occasionally to keep them active.
💡 Bottom Line: Improving your credit score isn’t magic—it’s about consistent, smart financial habits. Even small changes, like paying bills on time and managing your credit utilization, can make a noticeable difference in 30 days and pave the way for a stronger financial future.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk..jpg)
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