Improving your credit score in India is a gradual process, but with consistent effort, you can significantly boost it over time. Here's a clear, actionable guide to help you improve your credit score effectively: 1. Pay All Your Bills and EMIs on Time Timely repayment of loans, credit card bills, and EMIs has the biggest impact on your credit score. Even a single missed or late payment can damage your score. Use auto-debit or reminders to avoid missing due dates. 2. Maintain a Low Credit Utilization Ratio (Below 30%) Your credit utilization ratio is the percentage of your total credit limit that you’re using. Ideally, keep this ratio below 30% of your total credit limit. For example, if your credit limit is ₹1,00,000, try to use no more than ₹30,000 per month. 3. Avoid Taking Too Many Loans or Credit Cards at Once Multiple loan or credit card applications in a short time lead to hard inquiries, which can reduce your credit score. Lenders may see this as a sign of financial stress. 4. Maintain a Healthy Credit Mix Having a combination of secured loans (like home or car loans) and unsecured loans (like personal loans or credit cards) is good. A healthy credit mix shows that you can manage different types of credit responsibly. 5. Keep Old Credit Cards Active The age of your credit history matters — longer credit history improves your score. Don’t close your oldest credit cards, even if you don’t use them often. 6. Check Your Credit Report Regularly for Errors Get your free credit report from bureaus like CIBIL, Experian, CRIF High Mark, or Equifax at least once a year. Look for errors, like: Incorrect personal information Closed loans still shown as open Wrong default entries Dispute any errors immediately with the credit bureau. 7. Don’t Max Out Your Credit Limit Frequently using your entire credit limit is seen as high-risk behaviour. Try to keep your spending well below your available credit. 8. Settle Outstanding Dues — But Avoid “Settlements” If you have unpaid loans or credit cards, repay them as soon as possible. Avoid settling accounts by paying less than what is owed — this negatively impacts your score. If you’re struggling, speak with your lender for a structured repayment plan. 9. Become a Joint Account Holder or Authorized User Wisely If you’re a joint holder or guarantor for someone else's loan, their default can hurt your score too. Be cautious when becoming a co-borrower or guarantor. 10. Use Credit-Building Tools (if new to credit) Apply for a secured credit card against a fixed deposit if you have no credit history. Repay on time to build your credit profile from scratch. How Long Does It Take to Improve? Small improvements can be seen in 1–3 months. Major improvements may take 6–12 months or more, depending on your credit history and past defaults. Final Tip: Be patient and consistent. Improving your credit score is a marathon, not a sprint. Lenders reward long-term responsible credit behavior.

Dear Client, Your credit rating can be improved by asserting good fiscal habits and consistent repayment practices. Here are good ways: 1. Keep paying EMIs and credit card bills on time. Timely payment is the action that has the most effect. 2. Limited credit utilisation to below 30% of the overall limit. 3. Do not apply for too many loans or applications for credit cards at the same time. 4. Regularly check your credit report and fix any errors. 5. Having a mixture of credit types, a balance of secured (home loans) and unsecured (credit card) credit will help build your credibility. In time, these habits will increase your score over time. I hope this answer helps. For any further queries, please do not hesitate to contact us. Thank you.