Question
Q: How to improve credit score for loan approval?
Answer
A:
1. Pay All EMIs & Credit Card Bills on Time
Your payment history affects 35% of your credit score. Set up auto-debit or reminders to avoid late payments.
2. Keep Credit Card Usage Below 30%
High credit utilization lowers your score. If your limit is â‚ą1,00,000, try not to use more than â‚ą30,000.
3. Don’t Apply for Too Many Loans at Once
Each application triggers a “hard inquiry,” which may reduce your score. Apply only when you're eligible.
4. Maintain a Good Mix of Credit
Lenders prefer a balance of secured (home/car loans) and unsecured credit (personal loans/credit cards).
5. Check Your Credit Report Regularly
Identify and correct errors by requesting your free credit report from bureaus like CIBIL, Experian, or Equifax.
6. Don’t Close Old Accounts
Long-standing accounts build credit history. Keep them open unless necessary.
7. Consider a Secured Credit Card
If your score is low, use a secured credit card (backed by a fixed deposit) to build repayment history safely.
Bonus Tip: Clear Overdues & Settle Disputes
If you’ve missed payments in the past, catch up or settle them. Ask the lender to update the bureau once resolved.
Results Timeline
You can typically see a visible improvement in 3–6 months with consistent effort.
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Questions? Advocate B.K. Singh and the team are here to support you!
Whether you’re facing loan rejections, defaults, or just want personalized credit advice—get guidance that protects your rights and helps you qualify.
By Advocate BK Singh
(Delhi High Court)