How to Improve Your Credit Score and Get the Best Loan Offers ?
Vasudev
Feb 21, 2025
What is a Credit Score?
A credit score is a three-digit figure that reflects your creditworthiness. Lenders use this score to determine your ability to repay loans. A high credit score improves your chances of getting loans with lower interest rates and better terms.
Several credit bureaus in India provide credit scores, including:
How is Credit Score Calculated?
Credit bureaus calculate your score based on various factors:
- Payment History (35%) – Timely payments improve your score, while defaults lower it.
- Credit Utilization Ratio (30%) – Using less than 30% of your credit limit is ideal.
- Length of Credit History (15%) – Older credit accounts positively impact your score.
- Credit Mix (10%) – A good mix of secured and unsecured loans helps.
- New Credit Inquiries (10%) – Too many loan applications can lower your score.
How to Improve Your Credit Score?
Boosting your credit score requires consistent financial discipline. Follow these steps:
- Pay Your Bills on Time: Timely payments on credit cards, loans, and EMIs significantly improve your credit score.
- Maintain a Low Credit Utilization Ratio: Avoid maxing out your credit card. Keep your credit utilization below 30% to maintain a high score.
- Avoid Multiple Loan Applications: A high volume of inquiries in a short time may lower your score. Apply for loans only when necessary.
- Check Your Credit Report Regularly: Monitor your CIBIL, Experian, Equifax, or CRIF High Mark report for errors. Dispute any inaccuracies to avoid a negative impact.
- Build a Strong Credit History: Hold onto older credit accounts. Long-standing credit relationships help boost your score.
- Diversify Your Credit Mix: A combination of secured (home loans, auto loans) and unsecured loans (credit cards, personal loans) improves your score.
Get the Best Loan Offers with Quickfin
Looking for the best loan provider in India?
Quickfin offers personal loans, vehicle loans, business loans, loan against property, and credit cards with competitive interest rates.
Visit Quickfinindia.in to check your eligibility and get the best loan offers tailored to your needs.
Conclusion
A good credit score is essential for securing the best loan deals. By following these tips, you can enhance your creditworthiness and get loans at lower interest rates. Choose Quickfin for hassle-free loans and expert financial assistance.