Credit Score

Credit scores are basically numbers (usually ranging from 300 to 850) that lenders use to assess your repayment reliability. A score over 750 is considered excellent and secures better interest rates and loan terms.

Tips for a Healthy Score:

Pay bills on time: This is crucial for avoiding late payment penalties and damage to your score. Keep credit card balances low: Aim to use less than 30% of your total available credit limit. Avoid opening too many accounts quickly: Space out applications for new credit. Check your credit report regularly: Look for and dispute any errors. Maintain a good credit mix: Having different types of credit (e.g., credit cards and loans) can be beneficial if managed responsibly.

Thanks for your answer, but if maintaining low utilization and timely payments is key, how can I, with limited credit history or low income, effectively raise my score above 710 without incurring new debt?

To improve the credit score, try to repay all the dues on time and try to reduce the usage of credit cards. These are some important thing that you need to do.

Apart from this, negotiating debt settlements and disputing genuine errors, credit repair services can also help.

To check your CIBIL score for free, there are many reliable platforms available in India. Websites like the CIBIL (official website), CRED, PaisaBazaar, and some financial institutions, including banks.

To improve the CIBIL score, follow some rules like paying the bills on time, reducing the usage of credit, avoiding multiple loan applications, and maintaining a healthy credit mix.