1. Repayment History: It is critical not to miss any credit payments in order to improve your credit score. When it comes to credit or loan repayment, banks, lenders or other financial institutions always evaluate a borrower’s dependability. A good repayment history indicates how a borrower has performed over time and how committed he or she will remain to the same habit.

2. Credit utilization ratio: One of the most important practices for improving credit is to use the credit utilization ratio wisely. It is recommended that you use no more than 30% of the CUR from the available credit. Using a higher percentage of the CUR reflects the borrowers reliance on the borrowed amount. In some cases, the borrower may request a higher CUR from the lending institutions, however, even at that point, it is advised to keep the credit utilization ratio to 30%.

3. Do not have multiple hard inquiries: Hard inquiries are those that are made by the lending institution every time a borrower applies for a loan. Such inquiries, when made after a gap, do not severely damage the credit score. On the contrary, when these inquiries are made within a small duration, they can damage the credit score highly.

4. Fix errors: A credit report that is free of errors can help a borrower improve his or her credit score. As a result, it is recommended that the credit report be thoroughly reviewed at least twice a year. In the event of an error, misinformation, issues, or comments in the credit report, it is best to file a dispute and have the issues resolved as soon as possible. It is important to note that any kind of incorrect information reflected in the credit report can damage the credit score dearly.

5. Credit card maintenance: Another excellent way to improve your credit score is to maintain or use older credit cards for a longer period of time or until you can manage them. An old credit card records your credit history and helps in building an improved credit score.

6. Be disciplined: A borrower must not do the following things in order to achieve a good or improved credit score – delayed payments, missed payments, leaving outstanding balances, partially settling the credit amount, applying for a new loans immediately after a previous loan application has been rejected.
All of these factors have a negative impact on the credit score and can reduce the borrower’s chances of obtaining a variety of credit opportunities. To avoid such a situation, a borrower must do the following actions set timely reminders for loan EMIs and credit card payments, select the ‘auto-debit’ option, pay off the debt before the due date, seek the advice of a professional to gain more clarity.

7. Check your credit score: A borrower should review his or her credit score on a regular basis to gain an understanding of his or her credit performance. Checking the score has two advantages: If a borrower has a good credit score, he or she must sustain it or continue to improve it. Borrowers with fair or slightly fair credit must work hard to improve their credit report.

8. Applying for a new credit card: A borrower should not apply for a new credit card unless absolutely necessary. Acquiring multiple credit cards simply adds to the debt and makes it more difficult for the borrower to repay the credit on time. Furthermore, if the payment is missed or delayed, it can have an impact on the borrower’s credit score. As a result, applying for a new credit card with no intention of using it implies that you are intentionally harming your credit score.

9. Credit mix: It is critical to maintain a balance of secured and unsecured loans in order to improve one’s credit score. A healthy balance between the two reflects the borrower’s responsible approach to the management of both types of loans.