7 ways to improve your credit score

Timely repayment of dues: Pay all credit card bills, loan EMIs, and other financial obligations on or before the due date to build a positive payment history. Delays or defaults can impact your credit score.

Maintain low credit utilisation ratio: Limit your credit usage to less than 30% of your total credit limit. High utilisation indicates dependency on credit and can lower your score.

Avoid frequent loan applications: Applying for multiple loans or credit cards within a short period can lead to hard inquiries, negatively impacting your score. Instead, space out your applications and apply only when necessary.

Monitor your credit report regularly: Check your credit report for errors or inaccuracies that could hurt your score. Dispute any discrepancies with the credit bureau to ensure accurate records.

Diversify your credit mix: Maintain a healthy mix of secured loans (like home loans) and unsecured loans (like personal loans) to showcase your ability to manage different types of credit responsibly.

Keep old credit accounts active: Longer credit histories improve your score, so keep older credit card accounts open and active, even if they aren’t used frequently.

Avoid settling loans or defaulting: Loan settlements or defaults indicate financial instability and can reduce your score. Always negotiate for better terms rather than settling accounts for less than the due amount.