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Your credit score in India is more than just a number—it's your financial fingerprint. Whether you're applying for a loan or a credit card, lenders rely on your credit score to decide if you’re trustworthy with money. Fortunately, you don’t need to spend anything to keep it in top shape. Here’s how to manage your credit score in India absolutely free.
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| Seven free and effective steps to maintain and improve your credit score in India, including checking your report, paying bills on time, and disputing errors. |
What is a Credit Score, and Why Does It Matter?
A credit score typically ranges from 300 to 900. A score above 750 is considered good and can open the door to better interest rates and quicker approvals.
The main credit bureaus in India are
- CIBIL (TransUnion)
- Experian India
- Equifax India
- CRIF High Mark
If you're not sure how credit cards affect your score, check out our guide on how to use credit cards wisely.
1. Get Your Free Credit Report
Thanks to RBI guidelines, you're entitled to one free credit report per year from each bureau. Rotate between them to check your score every few months without paying a dime.
Useful Links for Free Credit Report:
2. Pay Bills On Time
Late payments—whether it's an EMI or credit card bill—can hurt your score. Automate your payments or set calendar reminders to stay on track.
3. Keep Credit Utilization Low
Try to use no more than 30% of your credit limit. So, if you have a limit of ₹1,00,000, aim to spend less than ₹30,000 regularly. High usage indicates risk and lowers your score.
4. Don’t Apply for Multiple Loans or Cards Frequently
Each credit application leads to a hard inquiry, which can reduce your score slightly. Too many applications in a short time make you look credit-hungry.
Instead: Use tools that offer pre-approved offers or soft inquiries with no impact on your score.
5. Keep Old Credit Cards Open
A longer credit history shows stability. Unless your old card has high fees, keep it active by using it occasionally and paying it off in full.
6. Dispute Credit Report Errors
If you notice inaccurate information—like an unpaid loan that isn’t yours—report it to the bureau. Most offer online dispute systems.
How to dispute errors on your CIBIL report
7. Diversify Your Credit Profile
Having both secured (like home or auto loans) and unsecured credit (like credit cards) can work in your favor—as long as you're managing them well.
Final Thoughts
Managing your credit score in India is absolutely doable without paying a rupee. Use free tools, be consistent with your payments, avoid unnecessary debt, and monitor your reports.
Remember, financial wellness isn’t built overnight. But with these simple, free strategies, you're already on the right path.
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