How to Improve My Credit Score

[Kiran J]

After my paid internship, I started my full-time job. During my internship, I began investing small amounts in stocks and mutual funds. My current credit score is 710; how can I improve it further?

[Siddarth]

Improving your credit score above 710 is doable and will have a major positive impact on your finances. Here are some guidelines to follow:

• Maintain a low credit utilization ratio by using less than 30% of your available credit.
• Avoid becoming overly reliant on credit; manage it responsibly.
• Consider increasing your credit limits to improve utilization, but be careful not to overspend.
• Always make payments on time; setting up automatic payments can help ensure consistency.
• Keep old accounts open, as they can positively impact the length of your credit history.
• Regularly check your credit report for errors and dispute any inaccuracies.

By addressing these factors, you can steadily improve your credit score.

[Kiran J]

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?

[Mr.Aryan]

@Siddarth
If I keep my credit habits in check, how long will it take for my score to reach 710 or higher? I've heard that CIBIL updates can take time.

[Siddarth]

@Mr-Aryan Getting your CIBIL score up to 710 or higher usually takes around 6 to 12 months if you stick to good habits. Make sure you pay your bills on time, keep your credit utilization low, and avoid taking out new loans for a while. Remember, banks only share your information once a month, so there aren't any quick fixes. Just stay persistent, and give it some time.