A credit score is a three-digit number (300–900 in India, calculated by bureaus like CIBIL, Experian, CRIF, and Equifax) that tells lenders how trustworthy you are with borrowed money. Above 750 is considered good; above 800 unlocks the best loan rates and premium credit cards.
The five levers
(1) Payment history — 35% of your score. One missed EMI can drop you by 50+ points. (2) Credit utilization — 30%. Using more than 30% of your available credit limit hurts you. (3) Credit age — 15%. Longer histories score better. (4) Credit mix — 10%. A mix of loans and cards is better than just one type. (5) New inquiries — 10%. Each hard inquiry (when you apply for credit) dings you slightly.
The fast wins
Pay every EMI and credit card bill before the due date, every month, without exception. Lower your credit utilization by either paying down balances or asking for a limit increase — if your card has a ₹3 lakh limit and you carry a ₹1.2 lakh balance, that's 40% utilization and it hurts. Don't close your oldest credit card even if you don't use it — closing shortens your average credit age.
The slow wins
Don't apply for multiple loans or cards in a short window. Each hard inquiry stays on your report for up to 24 months. Space out applications and only apply when you're reasonably confident of approval.
Check your report
RBI entitles you to one free credit report per year from each bureau. Review it for errors — wrong names, incorrect balances, and old defaults that should have fallen off. Disputing errors through the bureau's portal typically resolves within 30 days.