Pay your credit card bills & loan EMIs before due date
Consistency of timely payment of credit card bills and EMIs is the most important factor to impact your Credit Score. Please make sure you do not miss bill or EMI due dates as your credit score reduces if there is delay in repayments.
Reduce utilization of Credit Card limits
While you may be paying back your credit card bills on time, high usage of credit cards still indicates too much dependence on available credit line and possible lack of inflow of your own funds. As a result, your Credit Score can get negatively impacted. So, either you should reduce your dependence on credit cards or get credit limits of credit cards increased.
Don’t apply for loans and credit cards with multiple banks
When you apply for any credit card or loan with a financial institution (bank or NBFC). that financial institution fetches your credit card history and score from one or more Credit Bureaus. Basis your credit history and score, financial institution evaluates your ability to repay on time. Now each credit history enquiry by a financial institution is also recorded by same Credit Bureau where enquiry was made. So, if a financial institution sees multiple enquiries on your credit history by other institutions, it considers you to be credit hungry and to be less reliable in repaying on time.
Obtain your Credit Report regularly and check for errors
While you think you have a good credit history, in rare cases there may be certain errors in your credit history reported by your lenders to Credit Bureaus. As a result of those errors, your Credit Score could have reduces considerably. For example, you have completely paid off your personal loan and closed the loan account, but your credit report from Credit Bureau may still be showing up unpaid amount under same personal loan account. In such errors you can either approach any Credit Bureau or your lender to get the correction done.