The best way to Increase Your Credit Score – Dos And Don’ts

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What’s Credit Score: It is a statistical number based in your credit history, repayment habits along with other economic data collected from financial institution by the rating agencies. Your Credit Score is definitely an indicator of one’s Credit Worthiness. This information is collected by the rating agency based on a important or unique identifier like Permanent Account Quantity (PAN – issued by the Income Tax Department in India) or SSN in USA. Every single rating agency may possibly assign distinct weight-age to distinct parameters utilised to establish it. Normally, it ranges among 300 to 850 points. Get additional details about fix my credit score

With the credit score check, the lender gets an idea concerning the probability of default by the borrower, in case a loan / credit facility is provided to him/her. Higher the Credit Score improved would be the chances for receiving a loan at less expensive prices. Therefore it can be essential for you to check it just before applying to get a fresh loan or credit. A credit score below 600 is regarded as poor and frequently the economic institutions prevent loans to such people. By keeping financial discipline you’ll be able to also improve your it effortlessly. The quite smaller issues or ignorance can seriously harm your credit worthiness. By paying small interest to these smaller tiny items you could enhance the credit score and avail less costly credit facilities.

To enhance your credit score, you should stick to specific dos and don’ts.


1. Never ever delay the payment of installments due on current loans.

2. Make credit card bills payment normally in time. If attainable, use the ECS or Auto debit facility in your card bills payment, so that there’s no chance of forgetting the bill payment on due date.

3. If attainable, attempt to prepay the existing loans. Creating somewhat added payment over and above the due EMI or installments not simply aids you decrease the interest out-go but additionally aids increase your credit score.

4. Sustaining superior and long banking relations with existing banker helps you enhance the credit score. Regularly changing your banker, particularly the company connected credit facilities, can bring it down.

5. Also make payment of one’s utility bills like electricity, mobile, insurance premium, municipal taxes and so on in time. Though these do not get reported straight for the credit score check, but these allow you to preserve financial disciplined life.


1. Usually do not take different loans from diverse banks. Attempt to work with maximum credit facilities from a single or two banks. For instance you have got two housing loans, two auto loans and 1 individual loan every single of this from a different bank. This sort of arrangement will pull down your credit score. Attempt to shift all these 5 loans to one or max two banks.

2. Do not rotate the bank card balance from 1 card to one more card. Rotating balance from one card to one more means, you do not have suggests to spend the credit card bills. This seriously damages your credit worthiness.

3. Usually do not totally use or more than use the bank card limit. In case you attain above 90% limit consistently, ask the credit card issuer to boost your credit limit.

4. Do not discontinue your old credit cards without the need of any cause or since you might have taken a brand new card. Longer the credit history with typical bill payments, superior the credit score.

5. Usually do not take too quite a few credit cards from unique banks. Maintain maximum 3-4 cards with similar quantity of banks. When you use these cards routinely and make on-time payments on the card bills, your card firm will be delighted to increase your card limit.

6. Don’t withdraw money from CREDIT Cards by way of an ATM unless it’s an intense emergency. Frequent money withdrawal from credit card account brings down your credit worthiness, as an alternative use Debit Cards linked to your savings account for cash withdrawals.

Try to receive your credit score sheet after a year, in order that you understand exactly where you stand. In case you uncover any errors in the reported transactions on your sheet, immediately report exactly the same for the concerned monetary institution for correction and updating exactly the same with rating agencies, in particular when you are preparing to take a fresh loan / credit facility.

Get strategies on how to raise your Credit Score and manage credit responsibly. Get a lot more guidelines, follow the Dos and Don’ts & Maintain Very good Credit. Grow a greater Money Habit.

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