A good credit score opens the door to better financial opportunities, including lower interest rates on loans and credit cards. But what if your score isn’t where you want it to be? The good news is that you can improve your credit score quickly by taking the right steps. Here’s how you can boost your credit score in India in the fastest way possible.
1.Pay Down Credit Balance:
One of the biggest factors affecting your credit score is your credit utilization ratio, which is the amount of credit you’re using compared to your credit limit. If your credit cards are reached out, your score will take a hit.
Quick Fix:
- Aim to keep your credit utilization below 30% of your total available credit.
- If possible, pay your balances down to 10% or lower for a bigger score boost.
- Consider making multiple payments throughout the month instead of waiting for the due date.
2.Make Payments on Time:
Our payment history is the most important factor in determining your credit score. Even one missed payment can cause a significant drop.
Quick Fix:
- Set up automatic payments or reminders to avoid missing due dates.
- If you’ve missed a payment, pay it as soon as possible—the longer it remains unpaid, the more damage to your credit score..
- Contact your bank if you’re late and ask if they can remove the late payment as a goodwill gesture.
3.Request a Credit Limit Increase:
Increasing your credit limit can instantly lower your credit utilization ratio, which can improve your credit score.
Quick Fix:
- Call your bank and request a credit limit increase on your credit card.
- Avoid using the extra credit—just having a higher limit will improve your utilization ratio.
- Ensure your income supports the request, as banks may ask for verification.
4.Check Your Credit Reports for Errors:
Mistakes on your credit report can unfairly lower your score. In India, you can get your credit report from credit bureaus like CIBIL, Experian, Equifax, and CRIF High Mark.
Quick Fix:
- Get a free credit report from TransUnion CIBIL once a year.
- Dispute any errors with the credit bureau to have them removed.
- Keep an eye out for accounts that don’t belong to you—this could be a sign of identity theft.
5.Become An Authorized User:
If you have a friend or family member with a long credit history and excellent payment habits, ask to become an authorized user on their credit card.
Quick Fix:
- Their positive history will be added to your credit report, boosting your credit score.
- Ensure the account is in good standing before being added.
- You don’t even need to use the card—just being on the account can help.
6.Use A Credit Builder Loan or Secured Credit Card:
If you have not much credit history, using a credit-builder loan or secured credit card can help establish positive payment history.
Quick Fix:
- A credit-builder loan is offered by many Indian banks and NBFCs, where you deposit money that is released once the loan is repaid.
- A secured credit card, like those offered by ICICI, HDFC, and SBI, requires a fixed deposit as security but helps build your credit history.
7.Keep Old Credit Accounts Open:
The length of your credit history affects your credit score, so closing old accounts can hurt your score by reducing your average account age.
Quick Fix:
- Keep your oldest credit accounts open, even if you don’t use them frequently.
- Use the card for small purchases occasionally to keep it active.
8.Diversyfi Your Credit Mix:
Credit bureaus like to see a mix of different types of credit, including credit cards, personal loans, and home loans.
Quick Fix:
- If you only have credit cards, consider taking out a small personal loan to diversify your profile.
- Don’t apply for too many new accounts at once, as multiple hard inquiries can lower your score temporarily.
Improving your credit score quickly in India requires smart financial moves, but even small changes can make a big difference. Focus on paying down balances, making payments on time, checking your credit report for errors, and using strategic credit-building techniques. With consistent effort, you can see significant improvements in just a few months and set yourself up for better financial opportunities.
Start today, and watch your credit score climb!
