Adopt these 5 healthy credit card habits to shoot up your CIBIL score

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Lenders and credit rating agencies offer a credit score. You can also check using a pan card credit score if you don’t receive mail from the credit rating agencies. Having a habit of checking your CIBIL score makes it simple for the borrower to track changes and allows you to make the best possible choices and rectify any issues whatsoever to strengthen your credit profile, especially if you intend to use credit to fund future goals.

While CIBIL score calculation, if you notice that your CIBIL score is going down, then there are multiple ways to improve it. You must understand the aspects that affect your CIBIl score in order to improve it. 

  1. Do not default on monthly payments: A credit card is similar to an unsecured loan that must be repaid to the bank each month. Not skipping repayment cycles is highly advised. You have to pay higher interest rates and an extra late fee if you don’t pay your credit card bill by the due date. In addition to the monetary fine, missing a payment on a regular basis lowers your credit score. Usually, you can resolve this problem by making sure that your income balances with your expenses and that you promptly pay off any debts that are due.
  • Pay the whole minimum due amount: As a credit card user, you have to ensure that you either pay the full outstanding bill amount or above that minimum due. If you are unable to do so, it will have an impact on your credit score. Always carefully review your bill before paying it, or pay any amount over the minimum amount required before the due date to avoid this issue and to avoid wrong CIBIL score calculation. 
  • Be careful not to use your credit card excessively: Each bank has a spending cap for credit card users. This cap is determined by your ability to pay back the loan, which varies from bank to bank. To keep a good credit score, you should make sure that your usage never exceeds 30%. Users that limit their usage to 30% of their credit card spending limits typically receive improved credit scores from the credit bureau.
  • Avoid taking out cash using a credit card: There has always been a situation where people with credit cards are short on cash and are inclined to think about making a cash withdrawal using their cards. This is perhaps the most important item on this list of requirements to follow in order to use a credit card and keep a good credit score. You should be aware that using a credit card to withdraw cash might be very pricey. When using a credit card to withdraw cash, the interest rate is substantially greater than when making an online or PoS machine purchase. Additionally, cash withdrawals made with credit cards are not viewed favourably by banks and credit bureaus. Hence, for a better pan card credit score, you should maintain a good credit score. 
  • Avoid multiple credit cards and one-time debt settlements: Maintaining multiple credit cards is not advised if your credit score is low. You should avoid one-time debt settlements and having many credit cards in order to keep your credit score strong. If you are spending on all of your credit cards will only make your debt load grow and have a negative impact on your pan card credit score. It is often recommended to have two credit cards in order to keep a balance, but doing so might be difficult if you have a bad credit rating or are having trouble paying your bills. Your CIBIL score calculation will be negatively impacted by debt accumulation if the balance is not maintained. A one-time debt settlement is another action that has an impact on credit score. Only if you are completely in debt and anxious to pay off your debt should you choose a one-time settlement. Your lenders may agree to a one-time settlement to lower your debt, but it can have a negative effect on your credit report. This shows that you are unable to keep up a consistent repayment schedule, which decreases your credit score.
  • Repay dues by their deadlines: Missing loan EMIs or credit card payments can lower your credit score. Planning your loan and credit card payments meticulously before you spend is one of the methods to keep to repayment schedules. You can make sure you have the money to pay off your credit card debt on schedule by creating a budget in advance. Keep in mind that paying only the minimum amount owing on your credit card has a negative impact on your credit history. Always make complete payments on your credit card bills. If you have too much debt, consolidating your loans into one payment will raise your credit score.
  • Have experience with a good credit mix: Have you ever taken an unsecured loan in your life as a borrower? You can make improvements by taking out a secured loan, like one for a car or two-wheeler. Understanding various loan types not only gives you credit experience but also raises your CIBIL score. You can manage payments with careful planning because most secured loans have a longer repayment period, and most collateral-free loans have a shorter one.
  • Keep track of your credit utilization: The amount of credit you use in a certain period of time is referred to as credit utilisation. By dividing the entire amount of credit you are currently using across all of your credit cards by the total credit limit, you can determine your credit utilization ratio. A low ratio demonstrates responsible credit card use and a lack of credit-hungry behaviour. Your credit utilization ratio increases if you consistently use all of your credit cards to the maximum amount allowed. This raises a red signal that lowers your pan card credit score since it suggests you might be overly reliant on credit. To raise your credit score, it is essential to keep your credit usage ratio around 30%.
  • Ensure your credit report is error-free: Your credit report, which serves as the foundation for CIBIL score calculation, contains information on your profile, including your credit history, contact information, and account information. The easiest approach to monitor these indicators is to regularly check your credit report and score. Your CIBIL score could occasionally be low because your report contained a mistake. This can be the result of credit card fraud or a lender failing to close your paid-off loan account. You can raise your credit score by identifying these errors and filing a dispute to get the inaccuracies corrected.


Credit rating organizations use a number of variables to determine your score, including your credit history, dependence on credit, and exposure to various forms of credit. It is a well-known fact that having a good credit score is necessary for people who use credit cards, apply for loans, and want to get a line of credit in the near future. Your future applications for loans will be evaluated on the basis of your credit score. 

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