A credit score is your credit history expressed as a number. You can think of it as a grade for how responsibly you’ve managed loans, credit card and other financial obligations over the years. While having a good credit score can help you get loans easily from lenders that too at comparatively cheaper rate, having a bad credit score can limit your potential to take loans in future!
Always pay on time
A record of on-time payments is the most important factor to build a positive credit score. Keep your spendings under control and never delay a payment. If by some reason you are overdue on any installment, pay it off at the earliest
Don’t apply at too many credit platforms at once
Your credit scores take a small hit every time you apply for a credit product such as a credit card or a personal loan. This is because the lender makes an inquiry for your credit report with the bureau
Keep your credit utilisation at optimum level
Your credit utilisation is the amount of credit you use on a regular basis divided by the total amount of credit that you have access to. It is recommended to keep your credit utilization under 40%
Monitor your credit
You can do everything right yet sometimes factors such as identity theft, financial fraud and reporting errors can still affect your credit score. Hence, review your credit report regularly to ensure it accurately reflects your credit behavior. You are entitled to one free credit report every year from each of the three credit bureaus - Transunion CIBIL, CRIF and Equifax