How to Improve Your Credit Score for Better Card Approval?

Posted on Wednesday, September 20th, 2023 | By IndusInd Bank

In today’s financial landscape, a good credit score is your passport to financial opportunities. Whether you’re looking to apply for a credit card, get a loan, or secure favorable interest rates, a healthy credit score can make all the difference. If you’re aiming to boost your credit score to increase your chances of getting approved for an IndusInd Bank credit card or any other financial product, read on for valuable insights and tips. 

Understanding Your Credit Score 

Before you embark on your journey to improve your credit score, it’s essential to understand what it is and how it’s calculated. A credit score is a three-digit number that gives your lenders an indication of your creditworthiness. These scores are a result of multiple factors, including: 

1. Payment History: Your history of timely payments on loans and credit card bills. 

2. Credit Utilization: The percentage of your available credit limit that you’re using. 

3. Length of Credit History: The average age of your credit accounts. 

4. Credit Mix: The different types of credit you have utilised thus far, including credit cards, personal loans, and more. 

5. Recent Credit Enquiries: The number of times you’ve applied for new credit recently. 

Now, let’s explore some effective strategies to enhance your credit score: 

1. Clear Bills on Time: Your payment history plays the most important role in determining your credit score. It’s important to always pay all your bills, including credit card bills, loans, and utility bills, on time. Even a single late payment can have a negative impact on your score. 

2. Keep A Low Credit Utilization Ratio: High usage of your credit card, relative to your credit limit, can hurt your credit score. Aim to keep your credit card utilization below 30%. For example, if you have a credit limit of ₹50,000, try to keep your outstanding balance below ₹15,000. 

3. Think Before Closing Your Credit Accounts: The length of your credit history matters. When you close old credit accounts, it shortens your credit history and potentially lowers your score. Keep your old accounts open, even if you don’t use them frequently. 

4. Avoid Opening Too Many New Credit Accounts: Every time you apply for new credit, it generates a hard inquiry on your credit report. Multiple hard inquiries in a short period can lower your score.  

5. Keep An Eye On Your Credit Report: It’s wise to regularly check your credit report to point out any errors or discrepancies. If you do find any errors, report them to the credit bureau to have them corrected. 

6. Diversify Your Credit Mix: Having a mix of credit types, such as credit cards, personal loans, and retail accounts, can positively impact your credit score. However, apply for new credit only you can manage it responsibly. 

7. Set Up Payment Reminders: Missing payments can happen to anyone. To avoid this, consider setting up payment reminders or automatic payments for your bills. 

8. Reduce Outstanding Debt: Reducing your overall debt load can improve your credit score. Create a repayment plan to tackle outstanding loans and credit card balances systematically. 

Building and improving credit takes time. Be patient and consistent in your efforts, and your credit score will gradually rise. 

Now, as you work on improving your credit score, you may be wondering about the benefits of an IndusInd Bank credit card. IndusInd Bank offers a range of credit cards designed to suit various lifestyles and financial needs. These credit cards come with attractive features such as: 

• Reward Points: Earn rewards points that never expire on every purchase you make with an IndusInd Bank credit card.  
• Lifetime Free: Some credit cards come with zero annual fees and joining fee, making it free to use for lifetime. 
• Quick Digital Application: Apply for credit card online with 100% paperless process and get instant approval on your desired IndusInd Bank credit cards.  
• Contactless Payments: Experience the convenience of contactless payments for a fast and secure checkout. 

• Global Acceptance: IndusInd Bank credit cards are accepted both in India and abroad, making them ideal for travelers. 
• Online Account Management: Easily manage your credit card account online, check statements, and make payments conveniently with the IndusMobile app. 

As your credit score improves, you’ll be better positioned to take advantage of these benefits and make the most of your IndusInd Bank credit card. Remember that responsible credit card usage can further enhance your credit score over time. 

In conclusion, a good credit score is essential for achieving financial goals and accessing credit products like IndusInd Bank credit cards. By following these tips and practicing responsible financial habits, you can boost your credit score and open doors to a world of financial opportunities. 

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.