Improve your credit score by using a credit card

Understand the key factors that influence your creditworthiness.
DBS Bank Credit Card
2 minutes
01 April 2024

Using a credit card can be a great tool to increase your credit score, and the Bajaj Finserv DBS Bank Credit Card is an excellent option to do just that. Before you get a credit card, it is important to have a clear understanding of the fundamental concepts surrounding credit cards and credit-building.

  1. Credit utilisation ratio: One of the most important factors that determine your credit score is your credit utilisation ratio. This ratio is the percentage of the credit used against the available credit on your card. Keeping your credit utilisation ratio low, ideally below 50%, indicates responsible credit management and positively impacts your credit score.  The Bajaj Finserv DBS Bank Credit Card offer a high limit that helps you cover your expenses without over utilising the limit.

  2. Timely repayment: Another way to increase your credit score is by making your payments on time. With the Bajaj Finserv DBS Bank Credit Card, you can set up automatic payments, ensuring that you never miss a due date. You can either pay in full every month or pay in EMIs on or before the due dates, showing responsible credit behaviour.

  3. Credit score: A credit score is a numerical representation of your creditworthiness. Paying your credit card bills on or before the due date positively impacts your credit score. A higher credit score of 700 or above indicates better creditworthiness, qualifying you for big loans like home loans, car loans, education loans, etc. It will possibly help you find better terms and interest rates on your loan.

You might want to note that building a credit history is a gradual process that requires discipline and good financial management. By selecting the right card and showcasing responsible financial behavior, you can maintain your creditworthiness with ease.

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