1. Regularly Check Your Credit Report

The first step in improving your credit score is to obtain and review your credit report from one of the major credit bureaus in India, such as CIBIL, Experian, or Equifax. Carefully examine the report for errors, discrepancies, or inaccuracies in your credit history. Dispute and rectify any inaccuracies promptly, as these can have a negative impact on your score.

2. Pay Bills on Time

One of the most critical factors affecting your credit score is your payment history. Consistently paying your bills, loans, credit card dues, and utility bills on time is essential. Even a single missed payment can harm your score, so set up reminders or automatic payments to ensure punctuality.

3. Reduce Credit Card Balances

Credit card utilization is another significant factor in your credit score calculation. Try to maintain a credit utilization rate below 30%. This means you should not utilize more than 30% of your available credit limit. Reducing outstanding credit card balances can have a swift positive impact on your score.

4. Avoid Multiple Loan Applications

Each time you apply for credit, it triggers a hard inquiry on your credit report. A high number of inquiries within a short period can indicate credit-hungry behavior, potentially lowering your score. Be selective and apply for credit only when necessary to avoid unnecessary inquiries.

5. Diversify Your Credit Mix

A diverse credit portfolio can positively influence your credit score. Having a mix of credit types, including credit cards, loans (such as personal loans or auto loans), and retail accounts, demonstrates responsible credit management.