You’ve hit 700—Now what? 5 confirmed methods to maintain bettering your credit score rating | Mint

A credit score rating of 700 is immensely commendable in India. Still, with how issues are evolving within the nation as regards to credit score distribution and administration of funds, aiming for the next rating can unlock higher private mortgage phrases, decrease rates of interest, simpler residence mortgage charges, premium bank card affords and rather more.

A better credit score i.e., any rating above 750 or greater will be obtained with honest self-discipline, impeccable monetary habits, constant repayments on time and making certain that your credit utilisation ratio stays beneath your management.

Backing the identical, Raj Khosla, Founder & MD, My Money Mantra, is of the opinion that, “A credit score at 700 is like a tipping point. Try maintaining credit utilisation ratio; avoid splurging, opening too many credit accounts, and of course, timely repayments in entirety should be a no-brainer. One can effortlessly achieve a range of 750-850, while a series of slip-ups can also steer it to sub-600.”

Note: This desk supplies a normal overview of credit score rating ranges in India. Exact interpretations could fluctuate barely relying on the lender or monetary establishment.

Therefore, holding the above easy ideas in thoughts, allow us to take a look at easy methods you may deploy to boost your credit score rating and enhance your credit profile even additional:

Smart strikes to boost your credit score profile

• Timely funds: Ensure all credit card bills and mortgage EMIs are paid on or earlier than the due date. Setting up computerized funds may help keep away from missed deadlines.
• Maintain low credit score utilisation: Aim to make use of lower than 30% of your complete credit limit. For occasion, in case your credit score restrict is ₹1,00,000, strive to not exceed ₹30,000 in utilization.
• Diversify credit score combine: Having a mixture of secured (like residence loans) and unsecured (like credit cards) credit score can positively impression your rating.
• Limit new credit score purposes: Frequent purposes can result in a number of hard inquiries, which could quickly decrease your rating. Apply for brand new credit score solely when needed.
• Regularly monitor credit score stories: Check your credit reports periodically for errors or discrepancies. If discovered, increase disputes promptly to rectify them.

Hence, implementing the above mentioned methods may end up in a gradual enchancment in your credit score rating. Such a improvement will go a great distance in boosting your monetary profile and entry to raised monetary alternatives sooner or later.

Disclaimer: Mint has a tie-up with fintechs for offering credit score; you’ll need to share your info in case you apply. These tie-ups don’t affect our editorial content material. This article solely intends to coach and unfold consciousness about credit score wants like loans, bank cards and credit score scores. Mint doesn’t promote or encourage taking credit score, because it comes with a set of dangers reminiscent of excessive rates of interest, hidden fees, and so on. We advise buyers to debate with licensed consultants earlier than taking any credit score.