How to Improve Your Credit Score and Maintain a Healthy Credit Profile

In summary

A healthy credit profile is built through consistent credit habits over time.

• Pay on time: Avoid missed or delayed EMI and credit card payments.
• Manage credit utilisation: Avoid using a high share of your available credit.
• Limit new applications: Multiple credit enquiries in a short period may affect your profile.
• Review your report: Check your accounts, repayments, balances and enquiries.
• Correct errors: Raise a correction request if you find inaccurate information.
• Monitor your score: Regular checks can help you track changes in your credit profile.

Credit score improvement takes time. Focus on consistent habits rather than quick fixes.

What can affect your credit score?

Before working on credit score improvement, it helps to understand what can influence your score.

These factors work together. Improving one area does not guarantee an immediate change in your score.

6 steps that can support credit score improvement

Improving your credit score starts with small, consistent actions that help you manage your credit responsibly.

1. Pay your EMIs and credit card dues on time

Your repayment history is an important part of your credit profile. Missing or delaying payments can affect your credit history.

Set reminders or use automatic payment options where suitable so that your dues are paid on time.

Tip: Check your repayment dates and make sure you have enough funds available before the due date.

2. Keep your credit utilisation under control

Credit utilisation refers to how much of your available revolving credit you are using.

For example, if your credit card limit is ₹1 lakh and your outstanding balance is ₹30,000, your utilisation is 30%.

A high utilisation level may affect your credit profile. Keeping your balances under control can help you manage your available credit more effectively.

3. Avoid applying for several loans or credit cards at once

When you apply for credit, a lender may make a credit enquiry. Multiple applications within a short period can result in several enquiries being recorded in your credit report.

Apply for new credit when you have a genuine requirement rather than making several applications at the same time.

4. Keep older credit accounts in mind

The length of your credit history can form part of your credit profile. Before closing an older credit account, consider how it fits into your overall credit situation.

Do not keep an account open only to improve your score if it no longer meets your needs. Consider the account's costs, terms and your overall credit requirements.

5. Check your credit report for errors

Credit score improvement is not only about changing your financial habits. You should also make sure the information used to assess your credit profile is accurate.

Check for:

• Accounts you do not recognise
• Incorrect repayment entries
• Outstanding amounts that do not match your records
• Loans that were repaid but still show an incorrect status
• Credit enquiries you do not recognise

If you find incorrect information, raise a correction request with the relevant credit information company and the credit institution that reported it.

6. Give your credit profile time to improve

There is no fixed timeline for credit score improvement.

Your score can change as new information is reported and your credit history develops. Consistently paying on time, managing balances and avoiding unnecessary credit applications can support a healthier credit profile over time.

Avoid services that promise a specific score increase within a fixed number of days.

Can checking your credit score help with credit score improvement?

Checking your score does not directly improve it. However, regular checks can help you understand your credit position and identify information that may need attention.

You can check your credit score online for free and then review your credit report to understand the information behind your score.

The important part is not just checking the number. Look at the information behind it.

How to check your credit score?

There are several ways to check your credit score online. Bajaj Finance also offers a Credit Pulse Report that lets you check your score and review key credit information.

Step 1: Visit the Credit Pulse Report page

Go to the Credit Pulse Report page on the Bajaj Finance website and select the option to check your credit score.

Step 2: Verify your mobile number

Enter your registered mobile number and complete OTP verification.

Step 3: Enter your details

Provide the required details, including your name, PAN, date of birth, email, mobile number and PIN code.

Step 4: View your credit score

After successful verification, your available credit score will be displayed.

Step 5: Review your Credit Pulse Report

Check your active credit accounts, repayment history, outstanding credit and recent enquiries. You can also download the report for future reference.

A score check gives you a starting point. The report helps you understand what is influencing your credit profile.

How long does credit score improvement take?

There is no standard time in which a credit score will improve.

The timing depends on your credit history, the changes you make and when updated information is reported. For example, consistently making repayments on time may help build a better repayment record over time, but it does not guarantee a specific score or a specific rate of improvement.

The best approach is to focus on habits you can maintain over the long term.

What should you do if your credit score is low?

Start by checking your credit report rather than looking only at the score.

Look for the areas that may need attention:

1. Missed payments: Check whether any dues are overdue.
2. High balances: Review your credit utilisation.
3. Recent enquiries: Check how many recent credit applications appear.
4. Incorrect information: Look for accounts or repayment details that are not accurate.
5. Outstanding accounts: Review your current credit obligations.

Once you identify the issue, focus on addressing it and continue monitoring your credit profile.

Credit score improvement: a simple checklist

Use this checklist to turn the key recommendations into regular credit habits.

Credit score vs credit report: what should you check?

Your credit score gives you a quick view of your credit profile. Your credit report provides the details behind that number.

For credit score improvement, check both the number and the information behind it.

Keep building better credit habits

Credit score improvement is a gradual process. Paying your dues on time, managing your credit utilisation, limiting unnecessary applications and checking your credit report can help you build better credit habits.

Regularly reviewing your credit information can also help you spot errors and take action when something does not look right.

Want to keep track of your credit profile? Check your credit score online and review your Credit Pulse Report with Bajaj Finance.

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