A credit score is a three-digit number which ranges in between 300-900. This score vouches for a borrower’s creditworthiness to the lenders. If a borrower’s score is beyond 750, it is considered an excellent credit score and the lending institutions offer some of the best terms to him/her.

If your score is below 750, you need to know how to improve credit score. The most traditional way in which you can improve your credit score is by making repayments on time in full.

A borrower who doesn’t exhaust his/her credit limit is always preferred by lenders. It reflects well on your credit score when as a credit card user you only utilise a certain percentage of your credit limit. You can avail multiple credit cards to bifurcate your entire spending.

Also, when you use old credit cards and make timely payments, it creates a rich credit history. It further leads to improve your credit score.

When opting for loans initially, ensure that you get a comfortable repayment tenor. Thereby, you can easily repay the instalments and create a good repayment history leading to a good credit score.

With the Bajaj Finance RBL Bank SuperCard, you can convert your unutilised credit card amount into a personal loan. No interest is charged on such a loan for a period of 90 days and only a flat 2.5% processing fee is applicable on the principal amount.

You can also mix your credit habit by availing secured and unsecured loans of varying tenors. If you have debts from a lot of sources, you can pool it all into one loan. It saves you the hassle of paying multiple EMIs and credit bills.

You should not avail loans multiple times in one period. It shows you as a credit-hungry individual and has an adverse effect on your credit score. Also, when you apply for multiple loans, the lenders enquire about you which can reduce your credit score. Lastly, you need to check your credit score to review your performance as a borrower and in case of any discrepancies you can have it rectified.