How to Build & Improve Your Credit Score

Hdfc-credit-card-No-Credit-Score
Hdfc-credit-card-No-Credit-Score

No credit score? No worries! Well, only about 15% of Indians have an active credit score yet and you can build one in no time using the tips and tricks that we have mentioned. Please remember that you need to have a valid credit score to avail of most unsecured credit cards and loans in the market. Once you have it, though, do remember to use credit judiciously. Read on. 

Steps to Improve Your Credit Scores 

Secured Credit Card 

One of the easiest ways to build yourself a credit score is by getting a secured credit card. A secured credit card is nothing but a credit card that is issued against a secured asset, most commonly a fixed deposit. A lot of issuers will offer you a credit card against a fixed deposit that you open with them. You can use this card to build your credit score with time. Here you can also check what are the credit score factors

Secured Loan 

Another way in which you can start to build a credit score is by taking a secured loan. Much like the above, a secured loan is taken against a secured asset. Examples include car loans and gold loans, which are secured by assets that you purchase. Taking a secured loan can help you build your credit score as your credit details are entered into bureau records. 

Continue spending and repaying 

Once you have taken up a secured credit card or secured loan or both, you should ideally continue using it for spending and manage the repayment schedule as prescribed. The regular activity ensures that bureaus churn out your credit score swiftly. But make sure you don’t miss out on payments; spend only what you can afford to. 

Keep Checking Credit Score regularly 

Bankkaro offers you the option to log in again at any time and check your credit score for free! You should ideally check your credit score every couple of months, once it has started to be formed, to track its progress and take note of discrepancies, if any. The credit score offers you a lowdown of all credit card and loan accounts that are linked to your PAN card. 

Get an entry-level card using a newly built score 

Great! So now that you have taken a secured loan/credit card, are regularly repaying bills/ installments, and have been checking your credit score, you should have a decent credit score to apply for your first unsecured credit card. But before you go into the premium category, we recommend you try for a card that is relatively easy to get. Here is our list of the best entry-level credit cards in India right now, for your reference. 

An important thing to note here is that it will take approximately 3-6 months after taking your first secured card or loan for the credit score to be built. 

4 comments
    1. Hi, the best way to get and improve your credit score is by getting an entry-level credit card, using it for making few payments each month, and repaying in time.

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