5 Ways to Maintain Good Credit Score

Credit score plays the most important role when you are applying for a loan, as it determines your creditworthiness. A higher credit scorewill increase your chance of getting a loan approved under reasonable interest rates. And a low score can completely ruin your chances of getting a loan. Hence, a good score of 750 and above can help meet your financial goals, if you are planning to borrow money whenever needed.

But be patient! Building, improving and again checking your credit score takes a lot of time and effort. So, make sure that you are managing your money responsibly over time. To help you understand ways of improving a good credit score, let us go through this write-up!

  • Build your credit file – Want to enhance your credit score? Then, get a copy of your credit report, as it contains your entire credit history. Make sure to check the report for any discrepancies or any inaccuracies such as late payment charges or mismatches found in the amount that has to be paid or owed. After verification, you can get the errors corrected by informing the credit bureaus.

Remember that a credit score is only available when you take some form of credit from financial institutions such as a personal loan, gold loan, loan against property, car loan, etc. So, if you have never borrowed, then you would not have any credit score.

  • Track your credit card balance – Check your available credit card balance at regular intervals. Remember, the lesser your credit card balance, the better it is for your credit score.

Another way to improve your score is by consolidating multiple credit card balances with a loan. This way you can get rid of small credit card balances and end up using 1 or 2 cards, which can be used further. So forth, this helps you in even reducing the risk on your credit report.

Credit monitoring also helps in tracking any changes in your credit score. It can help you to take action if your score starts slipping downwards and helps you improve your credit score.

  • Do not close old accounts – There is no hurry in getting rid of old debts that you paid off from the credit report. Keep these accounts open to prove to potential lenders that you have the ability to pay off the debts you owe. Thereby, maintaining such well-paid debt accounts increases your credit score.
  • Don’t miss your payments – A simple way to keep your credit score soaring is by paying your dues on time. Follow proper discipline by repaying dues on time, as this improves your credit score.

If you do not repay the dues on time, it can affect your credit score drastically, making you incapable of getting a loan in the future. So, pay your bills on time to be considered a creditworthy borrower.

  • Correct your late payments – Late payments reduce your credit score, and missing payments can even worsen it. So, set up a reminder for your credit card and loan payments, and repay them on time. Also, ensure that you are checking your payment history regularly.

Factors That Make Your Credit Score

Your credit score is calculated based on factors such as repayment history, credit age, credit mix, credit utilisation ratio, the number of hard enquiries, etc. Your credit score will be good with a combination of all these factors, as per the credit bureau.


As you now know how to improve your credit score, follow them to maintain your score above 750. The more organised you get, the better and faster you can improve your credit score. Improving your score is definitely a goal that you can have if you are looking for loans in the future for bigger purchases like a new home, car, etc.

Looking for a loan with a low CIBIL score? FlexSalary has you covered. If you are a salaried individual, apply for a Line of Credit and get approved for a credit limit of up to 2,00,000 within a few minutes. 

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1. What is considered a good credit score in India?

A credit score of 750 or above is considered a good credit score. So, if your score is 750 and above, then you could be eligible for all kinds of loans and credit cards with reasonable interest rates.

2. How to achieve a credit score of more than 700?

If you want to achieve a credit score of more than 700, you need to follow the below-mentioned practices with regard to your credit:

  • Increase your credit limit.
  • Ensure timely repayment of credit cards and loans.
  • Keep the credit utilisation ratio to a minimum.
  • Avoid closing your old credit card accounts.
  • Last but not the least, focus on the length of your credit history.

3. I am having a poor credit score. Will I get approval on any loans?

The chances are low with other lending institutions. But, FlexSalary ensures that you get access to any type of loan, even when you have a poor credit score.

4. How often does my credit score get updated?

An update on your credit score happens when there is a hard enquiry, default settled, late payment, or written off the account. But, there will not be any update, if no credit activity takes place.

5. What is the difference between a credit score and a credit report?

A credit score is a 3 digit representation that is calculated based on your credit activities that are reported by your lender.

A credit report provides a detailed report of all your credit activities along with your credit score.