In today’s world, a good credit score has become an important part of our lives. Whether you want to take a loan, apply for a credit card, or get better interest rates, a strong credit score can make everything easier. If your credit score is around 650 and you want to raise it to 800, some easy and effective steps can help. Today, we will talk about 5 simple ways to increase your credit score, which can strengthen your financial position.
1. Pay All Bills on Time
The first and most important step to improve your credit score is to pay all your bills and loan payments on time. Payment history is the biggest factor in your score (about 35%). If you pay your credit card bill, loan EMI, or other bills on time, credit bureaus will see it as a good thing.
In 2025, you can avoid missing payments by using digital payment systems or reminder apps. For example, if your credit card bill is due on the 10th of each month, set up auto-payment or put a reminder in your calendar. Late payments can lead to penalties and may lower your score by 50-100 points. Regular payments will help improve your score over time.
2. Keep Your Credit Utilisation Low
Your credit utilisation ratio, or how much of your credit limit you use, affects your score. It’s good for your score if you use less than 30% of your credit limit. For example, if your credit card limit is Rs 1 lakh, try not to spend more than Rs 30,000 a month.
If your credit utilisation ratio is high, try two things: first, spend less on your credit card, and second, ask the bank to increase your credit limit. But keep spending at the same level, even if your limit increases. This will reduce your credit utilisation and help improve your score.
3. Fix Mistakes in Your Credit Report
Sometimes, your credit score may be low because of mistakes in your credit report. Around 20% of people have errors in their reports that hurt their scores. These mistakes can include wrong loan amounts, old loan payments, or accounts you didn’t open.
In 2025, you can get your credit report for free from bureaus like CIBIL, Equifax, or Experian. Check your report carefully. If you find any errors, contact the credit bureau and the bank. Correcting these mistakes can increase your score by up to 50 points.
4. Improve Your Credit Mix
Credit mix means having different types of credit, like credit cards, home loans, personal loans, or car loans. It affects about 10% of your score. If you only use credit cards, your score won’t grow as fast.
In 2025, you can improve your credit mix by taking a secured loan, such as a gold loan or a small personal loan. Before taking any new loan, make sure you can pay it back on time. Using different types of credit responsibly shows you are financially responsible and can improve your score.
5. Don’t Apply for New Credit Cards Too Often
When you apply for a new credit card or loan, it is called a “hard inquiry.” This can lower your score by 5-10 points. If you apply for credit more than three times in six months, it can hurt your score.
If you want to raise your score to 800, don’t apply for new credit unless you need it. Before applying for a new credit card, check your report to make sure your score is good. Also, if possible, become an authorised user on someone else’s credit card to help improve your score.
What Else Should You Remember?
By following these five simple steps, you can raise your credit score from 650 to 800. But remember, it will take time and patience. In 2025, use digital tools and credit monitoring services to keep track of your score. Regularly check your report, manage your finances well, and use credit wisely. These small actions will open up better financial opportunities for you.