A high credit score is more than simply a number in the modern financial world. It serves as a gauge of a person’s financial stability and creditworthiness. A CIBIL score of 750 and above is considered as an exceptional score in India. This higher credit score ensures that an individual can afford to enjoy certain financial opportunities. A few of such opportunities are favourable lending terms, increased credit ceilings and quicker loan approvals, etc.
TransUnion CIBIL conducted a study that reveals, 61% of female consumers are found to have a credit score of more than 730, as of the fiscal year 2023-2024. This illustrates how crucial it is to keep your credit score good. Developing healthier financial habits is considered as crucial these days. Whether you are new to credit or focusing on improving your current financial score, it is necessary to maintain the credit score to the range of 750 and above. The following 10 Practices will help you keep and raise your credit score especially in India.
Best Practices to Maintain a High Credit Score
1. Always repay your bills on time without missing any payments. Because your credit score will suffer if you don’t pay your expenses. Setting up automatic payments or reminders can ensure that you never miss out on missing any repayments.
2. Keep your credit usage ratio below 30%. The percentage of your credit limit that is presently being used is shown by your credit utilization ratio. For example, it is best to keep your outstanding debt at INR 30,000 if your entire credit limit is INR 1,00,000.
3. Monitoring your credit report on a periodical basis helps you to identify any errors or unauthorized activities. Rectifying the inaccuracies if any can ensure its timely prevention. Obtain a free credit report annually or half-yearly from an authorized credit bureaus like TransUnion CIBIL or Experian or Equifax or CRIF High Mark.
4. Reject several loan applications in a short period of time. Every time you apply for a loan or credit card, a hard inquiry will be made, which may lower your credit score a little. Hence, multiple loan applications in a short period of time can signal the lenders that you’re financially distressed.
5. Maintain a healthy credit mix. I.e. try to have a mix of secured loans and unsecured loans. This shows that you are in charge of your basic expenses. Additionally, your credit score is influenced by your varied credit portfolio.
6. Keep older credit accounts active. The lengthy term of your credit history contributes to your credit score. Maintaining even your older accounts actively showcases a long-standing credit history. Even though you don’t use an older credit card frequently, consider making small purchases every now and then and repaying them to keep it active over the years.
Also read: Don’t Pay a Rupee! Best Zero Annual Fee Credit Cards in India 2025
7. While maintaining older credit cards can increase your total credit card limit, managing too many credit cards at the same time means overspending. This has high chance of missing out on timely repayments. Maintaining a manageable number of credit cards ensures timely payments on all.
8. Settle dues instead of settling accounts. It means, settle the dues by paying it off in full rather than opting for settlements. This highly impacts your credit scores.
9. Use Credit responsibly. Responsible credit usage means it involves borrowing within the borrowing limit and ensuring to repay it off in time. Prior to taking out a new credit, it is advisable to make sure that the current credit is repaid. Always evaluate your ability to repay in order to prevent future financial hardship.
10. Stay informed and Educated. Your financial literacy plays a major role in greater credit management. You can make more intelligent financial decisions if you are aware of the elements that influence your credit score. Regularly read articles, attend webinars and/or consult financial advisors to enhance your credit knowledge.
Conclusion
Maintaining a high credit score isn’t about shortcuts. It’s done with consistent efforts, utmost financial discipline, and smart credit behavior. By following these best practices, along with the process of strengthening your creditworthiness, you also get to enjoy better financial opportunities. Such financial opportunities include lower interest rates, higher loan approvals, and peace of mind. Whether you’re starting out or rebuilding, a strong credit score is a long-term asset that pays off in more ways than one. Your future self will appreciate you starting today.
Written by Kavitha Sugumar
