In today’s financial landscape, your credit score is like your financial report card. Whether you’re applying for a personal loan, a new credit card, or even a rental property, lenders and service providers often assess your creditworthiness through this number.
But what if your score isn’t great? Don’t worry! Improving your credit score is absolutely possible with the right steps. Let’s first understand what a “good” credit score means, how to check yours, and most importantly, how to improve it.
What is Considered a Good Credit Score?
In India, credit scores range between 300 to 900. Here’s a simple breakdown:
- 750 – 900: Excellent – Trusted by most lenders
- 700 – 749: Good – Eligible for most credit products
- 650 – 699: Fair – Some lenders may hesitate
- 600 – 649: Poor – High risk for lenders
- Below 600: Very Poor – Rejection likely
To access credit quickly and affordably, it’s best to aim for a credit score above 750. This opens the door to lower interest rates, higher limits, and even instant loans from trusted platforms.
How to Check Credit Score
Checking your credit score is the first step toward improving it. Here’s how you can do it easily with FatakPay:
- Visit the FatakPay Credit Score Page
- Enter your PAN number and basic personal details
- Get your credit score instantly for FREE!
- Review your detailed credit report to understand what’s helping or hurting your score
Knowing where you stand makes it easier to plan your next steps, whether it’s correcting errors or improving your payment habits.
10 Steps to Improve Your Credit Score
1. Pay Your Bills On Time
Late or missed payments are one of the biggest red flags for lenders. Even one missed EMI can lower your score drastically. Set reminders or use auto-debit features to stay punctual.
2. Keep Your Credit Utilisation Low
Ideally, you should use less than 30% of your credit limit. If your limit is ₹1,00,000, try not to exceed ₹30,000 in usage. This shows you’re responsible and not credit-hungry.
3. Avoid Frequent Loan or Credit Card Applications
Each application triggers a hard inquiry, which can temporarily reduce your score. Instead, apply for credit only when necessary.
4. Maintain a Mix of Credit Types
Having both secured (e.g. home loans) and unsecured (e.g. credit cards) credit reflects well on your profile. It shows you can handle multiple forms of credit responsibly.
5. Don’t Close Old Credit Cards
The longer your credit history, the better it is for your score. Keeping old, active accounts with a good repayment record helps boost your score.
6. Check Your Credit Report for Errors
If there are mistakes in your credit report like wrong account balances or incorrectly marked late payments, that too hurts your score. Review your report regularly and raise disputes if needed.
7. Pay More Than the Minimum Due
Paying only the minimum amount on your credit card may keep you afloat, but it doesn’t help your credit score. Clear the full balance whenever possible.
8. Consolidate Debt with a Personal Loan
If you have multiple credit cards and EMIs, consider taking a personal loan to consolidate debt. This reduces your overall interest burden and shows a single, consistent repayment behaviour.
9. Limit Joint Applications or Guarantees
Being a co-borrower or guarantor links your credit to someone else’s habits. If they default, your score suffers too.
10. Use Trusted Platforms for Instant Loans with Flexibility
If you have a low credit score, it doesn’t mean you’re stuck. Look for the best instant loan app for low credit score users like FatakPay, which provides short-term, low-interest loans to salaried employees even if their credit history is limited or damaged.
Explore your options here:
FatakPay Credit Score Page
Looking Ahead: What’s the Minimum Credit Score Needed for a Personal Loan?
Generally, lenders look for a minimum score of 700 to approve personal loans. However, many fintech platforms today offer flexible products for borrowers with scores in the 600–700 range, often at higher interest rates or with additional documentation.
Coming Up Next: What is a Credit Score and Why Does It Matter?
Stay tuned for our next blog, where we’ll decode the ABC of credit scores, what they mean, how they are calculated, and why they’re critical for your financial health.
It’s Not Just About the Number, It’s About Building Trust
Improving your credit score is not a sprint, it’s a marathon. But with discipline, patience, and the right financial tools even a low credit score can climb to the top.
If you’ve been looking for the best instant loan app for a low credit score or wondering how to rebuild your financial standing, FatakPay has your back.
