Credit cards are a popular way to meet your requirements. This financial tool provides various beneficial offers such as reward points, welcome bonus, etc. Other than that, responsible usage of credit card helps an individual to improve their CIBIL score.

A CIBIL score is a 3-digit expression used by a different financial institution to determine a borrowers' credit-worthiness. This score ranges from 300 to 900, and an individual requires to hold a minimum score of 750 to avail any financial product.

Ways to use a credit score to improve credit score include –

• Make timely repayments

One of the primary solutions of how to use a credit card to improve your credit score is to make repayments in a timely manner. Individuals who pay their due within the billing cycle are considered as responsible borrowers which positively influence one's CIBIL score. Therefore, by using Credit cards responsibly, an individual can is one of the simplest measures an individual can opt to improve their credit card CIBIL score.

• Reduce credit utilisation

Rather than using most of your credit limit, ensure you limit credit card spending to around 60% of your credit limit. Failing to do so will affect your credit score in the long run. Lenders may perceive over-utilisation of credit as a sign of your credit-hungry nature.

• Use the credit card to pay utility bills

Using a credit card to pay electricity, gas, internet, and other utility bills is the easiest way to build your credit score. Paying off these smaller outstanding amounts is also simpler.

By following a few steps an individual can gradually improve their CIBIL score by efficiently using financial tools like a credit card. Such a high score can allow an individual to avail high-rated credit cards such as the Bajaj Finserv RBL Bank SuperCard.