In India, a good credit score—usually above 700—can be your golden ticket to better loan approvals, lower interest rates, and higher credit card limits. Whether you’re planning to buy your dream home, upgrade your car, or grow your business, your credit score plays a crucial role.
But how do you keep your score in the “safe zone”? Don’t worry. It’s not as complicated as it sounds. With a few smart habits and consistent planning, you can easily maintain a healthy credit score. Here’s a simple guide with some personal touch to help you understand what really works.
1. Always Pay Bills on Time – Even If It’s Just the Minimum
The biggest factor affecting your credit score is your payment history. Whether it’s your credit card bill, personal loan EMI, or even your mobile postpaid bill—pay it on or before the due date.
Pro Tip: Set auto-pay or payment reminders. Most banks and mobile wallets like Paytm or PhonePe allow you to schedule bill payments. For example, I once missed an EMI date by 3 days due to travel, and my credit score dropped by 25 points. Since then, auto-pay has been my best friend.
2. Keep Credit Card Usage Low – Ideally Under 30%
Let’s say your credit card limit is ₹1,00,000. Try not to spend more than ₹30,000 in a month. This is called credit utilization ratio, and keeping it low signals responsible usage to lenders.
If possible, use only 10-20% of your available limit. For example, if you have two cards, use both in moderation instead of maxing out one.
3. Don’t Open Too Many New Accounts at Once
Every time you apply for a credit card or loan, lenders do a hard inquiry—which slightly impacts your score. If you apply for multiple loans or cards in a short time, it can send the wrong signal.
Also, too many new accounts lower the average age of your credit history, which can reduce your score. So go slow. Apply only when needed.
4. Maintain a Long Credit History – Keep Old Cards Active
If you have an old credit card that has no annual fee, don’t close it. The longer your credit history, the better your score.
Think of it like this—your old credit card is like your school report card. The longer and cleaner your record, the more trust lenders have in you.
5. Keep a Healthy Mix of Credit Types
Your credit score also depends on the types of credit you use. A mix of secured loans (like home or car loans) and unsecured loans (like credit cards or personal loans) shows that you can handle different financial responsibilities.
Don’t go out and take loans just for the sake of it. But if you already have both types, manage them wisely.
6. Pay Before Statement Date, Not Just the Due Date
Here’s a small trick most people miss: Even if you pay in full before the due date, your credit card company reports your balance on the statement date.
If you’re using a lot of your limit, it may still look like you’re overspending. Try paying off your card before the statement is generated. This helps reflect a lower balance and boosts your score.
7. Watch Out for Hard Inquiries
As mentioned, applying for too many loans in a short period can cause a dip in your score due to hard inquiries. On the other hand, soft inquiries—like checking your own credit score on CIBIL or Experian—don’t impact your score. So feel free to check your score regularly. It’s free, and it helps you stay alert.
Final Thoughts
A good credit score is not built overnight—but with patience and discipline, anyone can maintain it. I often tell my clients, “Treat your credit score like your fitness level. Regular small efforts give big results over time.”
Start with these steps, and soon you’ll find your score comfortably sitting above 700—unlocking better opportunities and peace of mind.
Bonus Tip: Check Your Credit Score Regularly
Websites like CIBIL, Experian, or Paisabazaar allow you to check your credit score for free. Make it a habit to check it once every few months.
If you want help checking or improving your credit score or applying for a loan the smart way, feel free to reach out to us at Shree Bhagwati Solutions. Your first consultancy for home or car loan is free—so why wait?