8 Tips to Improve Your Credit Score to 800 & Above!

Posted on Monday, July 17th, 2023 | By IndusInd Bank

A credit score is a numerical representation of your creditworthiness, based on your credit history and behaviour. It ranges from 300 to 900, with higher scores indicating better credit quality. A credit score is important because it reflects your financial discipline and responsibility. Lenders use your credit score to evaluate your repayment ability and risk profile. A good credit score can help you get faster approvals, lower interest rates, higher loan amounts, longer tenures, and more benefits from lenders. On the other hand, a low credit score can make it difficult for you to access credit products or result in higher interest rates, lower loan amounts and shorter tenures. In this blog, we will discuss on tips to improve your credit score.

How to get the magic credit score of 800 and above? 

According to CIBIL, a credit score of 800 and above is considered excellent and indicates that you have a very high probability of meeting your future credit obligations. Achieving such a high score is not impossible, but it requires consistent efforts and smart strategies. Here are some of the ways you can improve your credit score and reach the magic number of 800 and above: 

• Pay your bills on time 
  One of the most vital factors that can negatively impact your credit score is your payment history. Therefore, you should always pay your EMIs and credit card dues on time and in full every month.  
   

• Check your credit report for errors 
  Sometimes, your credit report may contain errors or inaccuracies that can lower your credit score. Check for errors like incorrect personal information, wrong account details, mismatched overdue or paid-off amount, duplicate accounts, incorrect Days Past Due or Collateral details, etc. You should regularly check your credit report for any such errors and dispute them with the concerned credit bureau. 

• Manage your credit utilization  
  Your credit utilization ratio is the percentage of your available credit limit that you use in a given period. It reflects how dependent you are on borrowed funds. A high credit utilization ratio can indicate that you are overleveraged and may have difficulty in repaying your debt. Therefore, you should try to keep your credit utilization ratio low, preferably within 30% of your total limit. You can do this by reducing your spending, paying off your balances frequently, or increasing your credit limit. 

• Do not remove old accounts from report 
  If you have old accounts that you have paid off or closed successfully, you should not remove them from your report. These accounts show that you have a long and positive credit history, which can boost your credit score. However, if you have old accounts that have negative information, such as late payments or defaults, you should try to clear them as soon as possible or negotiate with the lender for a settlement. 

• Plan your credit 
  Before applying for any new loan or credit card, you should plan your credit carefully. You should assess your needs, affordability, repayment capacity, and impact on your existing debt obligations. You should also compare various options available in the market and choose the one that offers the best terms and conditions for you. 

• Limit the number of hard inquiries 
  Every time you apply for a new loan or credit card, the lender makes a hard inquiry on your credit report to check your eligibility. Too many hard inquiries in a short span of time can lower your credit score as it shows that you are desperate for credit or facing financial stress.  

• Consolidate your debts 
  If you have multiple loans or credit cards with high interest rates and different due dates, you may find it difficult to manage them efficiently. This can lead to missed payments or defaults that can hurt your credit score. One way to avoid this situation is to consolidate your debts into one loan with a lower interest rate and a longer tenure. This can help you save on interest, reduce your monthly outgo, and improve your credit score. 

• Have the right credit mix  
  Your credit mix is the proportion of secured and unsecured loans in your credit portfolio. Secured loans are those that are backed by collateral, such as home loans, car loans, etc. Unsecured loans are those that do not require any collateral, such as personal loans, credit cards, etc. Having a balanced credit mix can improve your credit score as it shows that you can handle different types of credit responsibly.  

How can IndusInd Bank help you improve your credit score? 

IndusInd Bank provides various benefits and features to help you improve your credit score, such as: 

• Lifetime free credit cards 
  IndusInd Bank offers some of the best lifetime free credit cards in India that come with amazing rewards, discounts, cashback, and other privileges. You can apply for these cards online and get instant approval with a 100% paperless process. By using these cards wisely and paying your bills on time, you can improve your credit score and enjoy the benefits. 

• Flexible loan options 
  IndusInd Bank offers flexible loan options to suit your needs and preferences. You can choose from various types of loans, such as home loans, personal loans, car loans, business loans, etc., with attractive interest rates and tenures. You can also customize your loan amount, EMI, repayment mode, etc., according to your convenience. By repaying your loan on time and in full, you can improve your credit score and save on interest. 

Conclusion 

A good credit score is essential for accessing various credit products and achieving your financial goals. By following the tips and tricks mentioned above, you can improve your credit score in India and reach the magic number of 800 and above. You can also take advantage of the various products and services offered by IndusInd Bank to help you improve your credit score and enjoy the benefits. 

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Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.