Timely Payments: Pay your bills, EMIs, and credit card dues on time. Late or missed payments can significantly impact your score.
Credit Mix: Maintain a healthy mix of credit types (credit cards, loans, etc.) to demonstrate your ability to manage different kinds of credit responsibly.
Avoid Multiple Applications: Limit the number of credit applications you make in a short period. Frequent applications can lower your score as it might indicate financial strain.
Regularly Check Credit Report: Monitor your credit report regularly for errors or discrepancies. Dispute and rectify any inaccuracies promptly.
Increase Credit Limit Sensibly: Increasing credit limits can positively impact your score, but be cautious as excessive credit limit increases may signal financial distress.
Maintain Old Credit Accounts: Longer credit history can boost your score. Keep older credit accounts open and active if they are in good standing.
Credit Utilization Ratio: Keep your credit utilization low. Aim to use only 30-40% of your available credit limit to show responsible credit usage.
Avoid Settlements or Defaults: Try to avoid settlements or defaults on loans or credit cards. They have a significant negative impact on your score.
Limit Unnecessary Credit Cards: Having multiple credit cards might seem convenient, but it can impact your score negatively if not managed properly.
Financial Discipline: Practice responsible financial habits. Budgeting, tracking expenses, and avoiding unnecessary debt can positively impact your credit score in the long term.