Credit Score

Why Your Credit Score Matters

A high credit score (750+) increases your chances of getting loan approvals for mortgages, personal loans, and credit cards. It also qualifies you for lower interest rates, which can save you lakhs over time. Some employers and insurers might check your score. They do this to evaluate your financial responsibility. So, it’s important for more than just credit applications.

How to Improve and Maintain a Strong Score

• Pay on Time: Even a single late payment can hurt your score. Set up autopay for EMIs and credit card bills.

• Keep Credit Utilisation Low: Stay within 30% of your credit limit (e.g., ₹30,000 if your limit is ₹1 lakh) to show responsible usage.

• Diversify Your Credit Mix: A mix of secured loans (like home loans) and unsecured credit (like credit cards) creates a balanced profile.

• Check Reports Annually: Errors, like an incorrectly marked unpaid loan, can impact your score. Regularly reviewing and disputing mistakes can prevent this.

• Limit Frequent Applications: Applying for many credits in a short time causes hard enquiries. This can lower your score for a while.

Build a Strong Financial Future

A good credit score isn’t just about loans—it’s about financial freedom. Manage your credit wisely. This opens up better financial opportunities and helps you avoid extra borrowing costs.