How to Improve Your Credit Score

A good credit score is essential for getting loans at better interest rates and improving your financial health. Here are effective strategies to boost your credit score:

1. Pay Your Bills on Time

Timely payment of EMIs, credit card bills, and other loans is the single most important factor in improving your credit score. Late payments negatively impact your score.

2. Maintain a Low Credit Utilization Ratio

Keep your credit card usage below 30% of your credit limit. High utilization can signal financial stress to lenders and lower your score.

3. Avoid Multiple Loan Applications

Applying for multiple loans or credit cards in a short time results in multiple hard inquiries, which can reduce your credit score.

4. Keep Old Accounts Active

The length of your credit history affects your score. Keep older accounts active even if you don’t use them frequently.

5. Check Your Credit Report Regularly

Review your credit report for errors or discrepancies and get them corrected immediately. This ensures your score reflects your true credit behavior.

To manage your loans better, use our EMI Calculator or explore the Prepayment Calculator for smart repayment planning.