Do you think your credit score is just some boring figure? Well, let me tell you that it is actually your great opportunity to enjoy lower interest rates, best loan offers, and even a quicker way to reach financial independence. A high credit score practically shouts to the banks, “I’m responsible, trustworthy, and low-risk, give me the benefits!”
Now picture this scenario: two people come into a bank. One has a dream credit score, and the other one… not so much.
Who will get the lower interest rate? You guessed right! That’s why improving your credit score is not only smart, it’s also a smart move.
The higher your score, the more you get to borrow money at lower rates, the more you save on your monthly payments, and even the faster you can get rid of the debt. Therefore, whether it’s a housing loan, automobile loan, or credit card, your credit score is the silent hero who is always there helping you keep your finances smooth and anxiety-free.
Pay on Time, Every Time: Late payments are the biggest credit score killers. Always pay EMIs, credit card bills, and other dues on or before the due date. Punctuality pays off!
Keep Your Credit Utilisation Ratio Low: Aim to use 30% or less of your available credit. High usage signals risk to lenders. Pay down debts before month-end if needed.
Maintain a Healthy Credit Mix: Balance secured loans (home, vehicle) with unsecured credit (personal loans, credit cards) to show lenders you can manage different types of credit responsibly.
Apply for Credit Sparingly: Each loan or credit card application triggers a hard inquiry. Apply one product at a time and wait for the final decision.
Let Credit Age Gracefully: Older accounts improve credit history length. Keep old credit cards active occasionally instead of closing them.
Monitor Your Credit Regularly: Check your credit report for errors or discrepancies. Correct mistakes to prevent unnecessary score drops.
Take Advantage of RBI’s New Directions: Improved credit scores let you request lower interest rates on floating-rate loans, reducing EMIs, shortening loan tenure, and saving money.
If there were a ranking of rules, the 7th would be the one with the most fun, and the reason is this! Here’s the good news, the RBI just gave a very favourable bypass to borrowers. In case you have had a better credit score, you can now reduce the waiting period for banks to change your loan spread from three years to none under the new 2025 regulations (from 1st October). You are allowed to ask your bank now to do a new assessment of your credit earlier, and yes, this will lead to a lower interest rate, smaller EMIs, and a shorter loan tenure.
Hence, if you have been punctual in your payments, your CUR has always been low, and you have been acting like a financial superhero, do not hesitate to pick up the phone and call your bank with the words, “Hi, I am worth a better rate!” Your bank account will be grateful!
(With Inputs)
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
Always bold with her opinions, she also never misses the chance to weave in expert voices, keeping things balanced and insightful. In short, Aishwarya brings a fresh, sharp, and fact-driven voice to every story she touches.
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