6 Ways You Can Achieve Your Credit Score Goals

Your credit score is a crucial number reflecting your financial reliability. As we go through the financial difficulties of our lives, achieving a high credit score can be challenging for many people. However, with strategic planning and disciplined execution, it’s a goal well within reach. 

Here, we explore six effective strategies to boost your credit score, setting a solid foundation for your financial future.

  1. Check CIBIL Score for Your Current Financial Standing 

Before starting any journey, knowing your starting point is crucial. The same goes for your credit score journey.

  • Regular Monitoring: Keeping a close eye on your credit score is the first step towards improvement. You can check your CIBIL score for free through various online platforms. 

  • Identify Areas for Improvement: Once you know your score, pinpoint the areas that need work. It could be high credit utilisation, late payments, or an error in your report.

  • Dispute Errors Immediately: If you find any errors in your credit report, raise a concern for them without delay. An incorrect address or an erroneously reported late payment can unfairly lower your score.

2. Make Use of an FD Credit Card to Build Your Score

For those starting or looking to rebuild their credit, an FD credit card offers a unique opportunity.

  • Secured Yet Effective: An FD credit card is secured against a fixed deposit. It’s an excellent way to build credit, as the issuer has less risk, making it easier to get than traditional credit cards.

  • Timely Payments Reflect Well: Using this card responsibly by making timely payments can increase your score to a large extent. 

  • Maintain Low Utilisation: Even with an FD credit card, keeping your credit utilisation low is crucial. Using less than 30% of your available credit signals good financial management.

3. Automate Payments to Never Miss a Due Date

Timely payments are a foundation of good credit health. Automating your bill payments can ensure you never miss a due date, positively impacting your score.

  • Set Up Auto-Debit: Automate your credit card and loan payments by setting up an auto-debit from your bank account. It ensures payments are always on time, without you having to remember due dates.

  • Avoid Late Payment Fees: Besides helping your credit score, this also saves you from unnecessary late payment fees. 

4. Reduce Your Credit Utilisation Ratio

Your credit utilisation ratio is a fundamental factor in your credit score calculation. It reflects how much credit you’re using versus your total available credit.

  • Keep it Below 30%: Aiming to use less than 30% of your available credit can positively affect your score. 

  • Request Higher Credit Limits: Occasionally, ask for a credit limit increase. A higher limit with the same spending can lower your utilisation ratio as long as you don’t see it as an excuse to spend more.

5. Diversify Your Credit Mix

A diverse credit portfolio can show lenders you’re capable of handling various types of credit, from credit cards to loans.

  • Mix of Revolving and Installment Credit: Having a mix of revolving credit (like credit cards) and instalment loans (like a car or personal loan) can show you’re a responsible borrower.

  • Start Small: You don’t need to take on unnecessary debt to diversify. Small, manageable amounts can help build your profile without overwhelming you financially.

6. Maintain Old Accounts to Lengthen Your Credit History

The length of your credit history contributes to your credit score. Keeping old accounts open can provide a more extended credit history, ultimately benefitting your score.

  • Don’t Rush to Close Old Accounts: Even if you no longer use an old credit card, consider keeping it open (as long as it doesn’t cost you annual fees). 

  • Use Old Cards Occasionally: To prevent issuers from closing your account due to inactivity, occasionally use old cards for small purchases.



From keeping tabs on your score with a check CIBIL score for free option to smartly using an FD credit card for building credit, each step is a leap towards financial stability and freedom. Automating payments, managing your credit utilisation, diversifying your credit mix, and valuing your credit history are all parts of a complete approach to significantly enhancing your credit score. 


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