Understanding Credit Bureau Ratings
Your credit score is calculated based on payment history, credit utilization ratio, account age, credit mix, and recent inquiries. Maintaining a credit utilization ratio under 30% is crucial for high scores.
1. Pay Bills Before Due Date
Timely payments account for 35% of your credit score. Set up automatic EMI auto-debits to avoid missing deadlines.
2. Keep Credit Utilization Under 30%
If your total card limit is ₹1,00,000, keep monthly card spends under ₹30,000 to signal disciplined credit usage.