Yes, you can increase your credit score over time by keeping some of the following tips in mind. 

1. On time monthly EMI payments:

If you have a current loan (personal loan, car loan, business loan or any other loan), your lender would have fixed a certain amount that needs to be paid on a monthly basis in order to repay your loan in full. This certain amount paid per month is known as your EMI (Equated Monthly Instalment). This EMI amount should be paid before a certain date every month (generally before the 10th of each month). Ensure that you make your EMI payments in full before the due date every month. This can help you improve your credit score.

2. On time monthly credit card bill payments:

If you have a credit card and are using it currently, ensure that you pay your full credit card bill on time. This amount should be paid before a certain date every month (generally before the 10th of each month). Paying your credit card bill in full and before the due date can help improve your credit score. 

3. Score builder loans: 

If you do not have a loan that is running, you can apply for a credit builder loan, wherein the loan amount that you borrow is held in a bank account while you make your payments to the bank. Your on-time payments are reported to a credit bureau, thereby helping you build your credit score. The money is then released to you once the loan amount is paid off. These are also called Fresh Start Loans.

4. Secured credit card:

If you do not have a credit card currently, you can apply for a secured credit card. A secured credit card is one wherein you get a credit card against a fixed deposit or some other form of security. Repaying your secured credit card bills on time can hep you improve your credit score.  

5. Credit Improvement Service: 

Companies such as CreditMantri provide a Credit Improvement Service. This helps individuals with a low credit score by helping them clear past dues in order to improve their credit score in the future. We collect our customer’s credit report, check for delinquent accounts, contact their respective lenders, obtain the outstanding amount that is to be paid and help the customer repay the same with the best options available. We also provide score building credit products to our customers and these in turn improve their credit score if they repay their bills on time. A good credit score then enables them to get low interest loans and high limit credit cards in the market in the future.

6. Check eligibility criteria:

Different lenders have different eligibility criteria for loans and credit cards. If you have decided on a lender to borrow from, it is essential to check their eligibility criteria to see if you meet them all. Loan or credit card rejections can lead to further credit score reductions, so it is best to ensure that you are eligible for the loan or credit card before applying for the same. Hard enquires on one’s credit score by a lender can also affect one’s credit score. 

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