Maintaining a strong credit score is essential for accessing loans, credit cards and other financial services on favourable terms. Financial experts suggest that individuals can improve their credit scores within a few months by adopting disciplined financial habits and managing credit responsibly.
A credit score plays a crucial role when lenders evaluate applications for home loans, education loans, personal loans and credit cards. Experts state that individuals may notice modest but meaningful improvements in their credit ratings within 30 to 90 days if they follow structured repayment and credit management strategies.
One of the most effective ways to improve a credit score is by ensuring timely repayment of loans and credit card bills. Missing or delaying payments can significantly damage creditworthiness and reduce chances of loan approval in the future. Setting up automatic payments or reminders can help borrowers avoid missed deadlines.
Another important factor influencing credit scores is credit utilisation, which refers to the percentage of available credit that is being used. Financial advisors recommend keeping credit utilisation below 30 percent, as higher usage levels may indicate overdependence on borrowed funds and negatively impact credit ratings.
Regularly checking credit reports is also considered essential. Errors, incorrect entries or unauthorised transactions can lower credit scores if not corrected promptly. Individuals are advised to review their credit reports frequently and raise complaints with credit bureaus if discrepancies are found.
Experts further recommend avoiding multiple loan or credit card applications within a short period. Frequent applications may signal financial stress to lenders and increase the risk of rejection. Maintaining older credit accounts is also beneficial, as it reflects stability and strengthens overall credit history.
A balanced mix of secured loans, such as home or vehicle loans, and unsecured credit like personal loans or credit cards can also enhance creditworthiness. Additionally, clearing outstanding dues completely rather than opting for settlements helps maintain a healthy credit profile and ensures long-term financial stability.
