Here's a step by step guide to help you improve credit score

Credit score can sound like a dauting term. However, knowing these basic facts about credit score will help you understand what is credit score and how to improve credit score.

What is credit score?

A credit score is usually a three-digit number that helps determine your creditworthiness to lenders based on factors such as your credit history and credit rating. The ideal credit score in India is 900. However, the range varies from 300 – 900.

Why should you maintain a good credit score?

Credit score is used by various financial organizations. Knowing how to improve credit score can grant you access to the best health insurance, loans at the lowest rate of interest and credit cards with the highest credit limits.

How to improve credit score?

A good credit score is important for financial planning. Here are some facts about credit score that explain how to improve credit score:

  • Clear all outstanding credit payments

Your repayment behavior can make up almost one third of your score. Clearing up all your outstanding bills and installments contributes to a high credit score.

- Plan your credit card spending in such a manner that you clear off your credit balances at least five days before the due date.

- Pay your equated monthly installments [EMIs] for your biggest loans on time. This will help in improving your track record to pay bigger amounts.

- Avoid using more than two credit cards to curb your spending instincts. This will also make it easier to pay your outstanding amount on time.

  • Avoid multiple credit applications

- If your application for a loan or a credit card is rejected, avoid making another application for one soon after because it will be marked negatively.

- Apply for loans as infrequently as possible.

- Apply for fresh credit only when older loans and bills are cleared. It shows that you are not credit hungry.

  • Do not use your credit card to its limit

- Limit your credit card bill to 50% of the credit limit. It shows that you are a responsible spender which increases your credit score.

- Using your entire credit limit is marked as an inability to repay your debt obligations which reflects negatively on your credit score.

  • Try to balance your loans

- Avoid restricting yourself to either unsecured loans like personal loans.

- If you do apply for an unsecured loan, make sure you also apply just as frequently for secured loans like home loans or car loans.

  • Check your credit report for errors

- Sometimes errors can occur in the calculation of your credit score. Lenders could make some typographical data entry errors.

- An individual must make sure that any errors in your credit report are appealed by the individual on the CIBIL website (

A good credit score might seem difficult to maintain but if you follow these simple facts about credit score that explain how to improve credit score, you are bound to have a smooth application for the best health insurance, loans and credit cards.


ManipalCigna Health Insurance Company Ltd (Formerly known as CignaTTK Health Insurance Company Limited) | CIN U66000MH2012PLC227948 | IRDAI Reg. No. 151 
Reg. Office: 401/402, 4th Floor, Raheja Titanium, off. Western Express Highway, Goregaon (East), Mumbai- 400 063 | Toll free number – 1800-102-4462 | Website address –
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