A credit score is a three-digit number that helps banks and lenders evaluate the creditworthiness and decide they should approve loans to an individual. Over time, this three-digit number has gained a lot of importance, and today, it plays a crucial role in a person’s financial life. The higher the credit score, the more likely you are to qualify for credit cards and loans at low-interest rates and favourable terms.

However, if your credit score is non-existent or low, you are sure to face a lot of hassle in securing a loan and a credit card. But luckily, there are a lot of quick ways to raise your credit score.

Tips To Improve Your Credit Score

  1. Pay your credit card bills on time
  2. Pay your utility bills on time
  3. Remove errors, if any, from your credit report
  4. Don’t take too many loans at the same time
  5. Keep your credit use to a minimum
  6. Make multiple payments to bring down your credit utilisation
  7. Build credit
  8. Use a credit card, but responsibly
  9. Let the old and good debt records on your report stay
  10. Don’t apply for too many credit cards at once

if your credit report is unsatisfactory or you wish to increase your credit score, follow these tips listed below.

  • Pay your credit card bills on time

This is the most important factor, and there is no way you can go around this. To get a higher credit score, you need to pay your credit card bills on time every month. Remember, your payment history comprises 35% of your credit score. So, you have to make baying your bills a priority. Do whatever it takes to follow a strict payment schedule so that you can make your payments before the last date each month. Making payments on time make lenders believe that you are capable enough to handle future debts responsibly. So, use the automatic payments system or set calendar reminders so that you can pay all your dues on time every month and maintain a good credit history.



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  • Pay your utility bills on time

Not just credit card bills and loans, you must also pay your phone bills and other utility bills on time. Many people struggle to make payments on time, and the primary reason behind this is not planning bill payments in a timely manner. However, late payments can hurt your credit score, which could affect the interest rates for you in the future. So, it is essential that you also make these payments on time. Set up reminders on your phone or set up an auto-withdrawal system from your account to ensure that you don’t miss the last date. Also, if you’re lagging on any payments, try to close them as soon as you can.

  • Remove errors, if any, from your credit report

You might have paid off a loan and closed it from your end, but it might still be showing as pending due to some administrative error. Yes, such mistakes can happen, and they can adversely affect your credit score. The only solution to avoid such errors is to review your credit report regularly. 

Another reason to regularly check your credit report is there could be fraudulent activity on your account that could affect your credit score. This kind of identity theft can be really dangerous, so review your report regularly and check for suspicious activities that you don’t recognize. If you find any, dispute it directly with the credit bureau. Though it may take some time, once the negative information has been removed from your credit report, you might see an improvement in your credit report.

  • Don’t take too many loans at the same time

Another way to improve your credit score is not to take too many loans at one go. The idea is to borrow only the amount that you can repay at once. Take a loan, repay it, and only then should you take another loan. This helps to keep your credit score from plunging if you default on several loans together. You must avoid borrowing multiple loans at one go because it creates an impression that you are in a constant debt-cycle where you don’t have enough funds to support yourself. This will make your credit score fall further. Simply put, if you take a loan, repay it on time, and then take another loan; this is the only fool-proof way to improve your credit score. 

  • Keep your credit use to a minimum

Credit utilisation, or the amount of credit limit that you use, plays a crucial role in affecting your credit score. Moreover, so, it is advisable to keep it to a minimum. The more you restrict your credit usage according to the credit allotted limit allotted to you; the better will be your credit score. So, make purchases using your credit card only when you know that you can pay for those items. The idea is to treat it like a debit card. Most credit experts recommend keeping the credit utilization rate at 30 percent or less because the credit utilisation rate makes up for 30 percent of your credit score. 

  • Make multiple payments to bring down your credit utilisation

We explained in our previous point how credit utilisation has a direct impact on your credit score and hence, you need to have a low credit utilisation rate. If you have maxed out your credit limit or used too much of your balance, you can make multiple small payments, also known as micropayments, to bring down the balance. If you are out of cash and unable to make your credit card payments, you can also opt for a debt consolidation loan. This type of loan could help you pay your credit card bill and thus, reduce or completely remove the credit card balance. So a low balance would mean a lower credit card utilisation, a better credit score. 

  • Build credit

Having no credit fetches you a zero credit score. So having no credit score means you have no experience or history with credit. This also means that you have a thin credit file. When you have a thin credit file, your lender is unable to calculate your credit score. The reason is that there is not enough information in your credit history for the lender to calculate your score. To fix this, you need to build up your credit score. To build your credit score, you can apply for a secured credit card or become an authorized user on someone else’s credit card like your spouse. You can also opt for a credit builder loan to build credit and a good credit score.

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  • Use a credit card, but responsibly

You might be surprised at this suggestion because we also suggested above limiting its usage. However, using a credit card isn’t a bad thing, as long as you use it responsibly. A credit card can help you build a good credit score, which will have a positive impact on your credit report. Always remember that someone with no credit cards has a chance of having a bad credit report than someone who has a credit card and has also managed it responsibly. 

To not let credit card debt negatively impact your credit score, you can also opt for secured credit cards where you deposit into a checking account. This deposit secures the line of credit that is being extended towards you. And the best thing about a secured credit card is that if, for any reason, you default on the payments on a secured credit card, the deposit that you had initially made would be used to cover the pending balance on the card.

  • Let the old and good debt records on your report stay

Another way to improve your credit score is to let the old and good debt records stay on, even though you might think otherwise. Yes, we understand that most people would want to start afresh after a financially difficult situation and wipe off their credit history once you pay off the loan or the bills, but hold on. The good news is if you have completed the payments on time, those old debt records may help you build your credit score, and this applies to credit card accounts too. 

  • Don’t apply for too many credit cards at once

If you didn’t already know, every time you apply for a new credit card, a hard inquiry is conducted on your report. Moreover, this inquiry, even though temporarily, lowers your credit score. The effect of a hard inquiry lasts for six to 12 months. So, refrain from applying for several credit cards within a short period or before applying for a large loan like an auto loan or home loan. 

In today’s day and age, it is imperative to have a good credit score because that opens doors to a lot of opportunities. A good credit score can help you qualify for the best and lowest interest rates when you apply for an instant loan and help you gain credibility in the world of finance. And now that you know the importance of a good credit score, especially the role that it plays in your overall financial well-being, you must do everything possible to maintain a good credit score. To start with, pay your credit card and utility bills on time and check your credit reports regularly, and you are good to go!

Shivam Abrol

Shivam is a passionate content writer with Masters in journalism. A mutiple-award-winning writer, he brings over a decade of experience as a BFSI writer. In fact, he himself is known in his circle for sound financial advice. A writer by day and a reader by night, Shivam enjoys researching and writing on various financial topics, including credit, stock market, crypto, taxes etc. When he is not spending his time penning down an informative article or opinion, he can be found playing with his kids or collecting stamps.

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