You’ve hit 700—Now what? 5 proven ways to keep improving your credit score

A credit score of 700 is immensely commendable in India. Still, with how things are evolving in the country with regards to credit distribution and management of finances, aiming for a higher score can unlock better personal loan terms, lower interest rates, easier home loan rates, premium credit card offers and much more.

A higher credit score i.e., any score above 750 or higher can be obtained with sincere discipline, impeccable financial habits, consistent repayments on time and ensuring that your credit utilisation ratio remains under your control.

Backing the same, 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.”

Credit score range in India: What your number means

Note: This table provides a general overview of credit score ranges in India. Exact interpretations may vary slightly depending on the lender or financial institution.

Therefore, keeping the above simple concepts in mind, let us look at simple strategies you can deploy to enhance your credit score and improve your credit profile even further:

Smart moves to enhance your credit profile

• Timely payments: Ensure all credit card bills and loan EMIs are paid on or before the due date. Setting up automatic payments can help avoid missed deadlines.
• Maintain low credit utilisation: Aim to use less than 30% of your total credit limit. For instance, if your credit limit is ₹1,00,000, try not to exceed ₹30,000 in usage.
• Diversify credit mix: Having a combination of secured (like home loans) and unsecured (like credit cards) credit can positively impact your score.
• Limit new credit applications: Frequent applications can lead to multiple hard inquiries, which might temporarily lower your score. Apply for new credit only when necessary.
• Regularly monitor credit reports: Check your credit reports periodically for errors or discrepancies. If found, raise disputes promptly to rectify them.

Hence, implementing the above discussed strategies can result in a gradual improvement in your credit score. Such a development will go a long way in boosting your financial profile and access to better financial opportunities in the future.

Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit scores. Mint does not promote or encourage taking credit, as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.