How to Build Your Credit Score?

A good credit score is more than just a number—it is a reflection of your financial discipline and reliability. Lenders use your credit score to assess your eligibility for loans and credit cards. A higher score can lead to lower interest rates, better repayment terms, and access to higher credit limits.

Benefits of maintaining a good credit score:

• Improved loan eligibility: A good credit score increases your chances of approval for home loans, personal loans, and other credit products.
• Lower interest rates: Borrowers with higher credit scores are often offered competitive interest rates, reducing overall borrowing costs.
• Access to premium financial products: A strong credit score can open doors to exclusive credit cards and higher-value loans.
• Financial security: A good score ensures you have access to credit during emergencies or major life events.

Improving your credit score is a gradual process and depends on the positive changes you make to your financial habits.

Factors influencing timelines:

• On-time payments: Consistently paying your EMIs on time can improve your score within 3–6 months.
• Reducing credit utilisation: Lowering your credit card usage can show results within a few billing cycles.
• Clearing outstanding debts: Paying off debts can lead to noticeable improvements in your score within 6–12 months.

Note: Credit bureaus update scores periodically, so patience and consistency are key.