A strong credit score is essential for securing access to loans and financial services like home loans, personal loans, and credit cards. Your credit score is a three-digit number that reflects your creditworthiness and helps lenders assess the risk of lending to you.
In India, credit scores are issued by four key credit bureaus — TransUnion CIBIL, Experian, Equifax, and CRIF High Mark. Generally, a score of 750 or higher is considered favorable and can help you qualify for loans with lower interest rates and higher credit limits. Regularly reviewing your credit report also helps identify any discrepancies that may negatively impact your score.
Here are some effective strategies to boost your credit score:
Pay all EMIs and credit card bills on time. Timely payments help build a positive credit history.
Maintain credit utilization below 30%. This shows responsible credit usage.
Avoid applying for multiple loans or credit cards simultaneously. Too many applications can hurt your score.
Keep older credit cards active. A longer credit history with timely payments strengthens your score.
Avoid closing older credit cards, as doing so can shorten your credit history and reduce your score.
Check your credit report at least once a year to catch and correct any errors, especially before applying for major loans.
Disclaimer: The views expressed above are those of individual analysts and do not necessarily reflect the opinion of EconomicTimes.com. Always consult a financial advisor before making financial decisions.
