Get Personal Loan upto ₹10 Lakhs in 10 mins!

  • Employment Type

    How can you improve your credit score before applying for a new credit card?

    Credit cards: You can follow these 6 key tips to improve your credit score over a period of time before applying for a credit card

    MintGenie Team
    Published16 Sep 2024, 09:53 AM IST
    Credit cards: Making payments late can considerably affect your credit score. So, it is recommended to pay bills on time which include credit cards and loans.
    Credit cards: Making payments late can considerably affect your credit score. So, it is recommended to pay bills on time which include credit cards and loans.

    Are you planning to apply for a new credit card but struggle to get a credit score good enough to procure a card? Well, you are not alone. This problem is quite prevalent.

    There could be a lot of reasons for the poor credit score, also known as CIBIL score. And once you know the reason, you can very well fix it. First and foremost, you need to get access to your credit report and spot the inaccuracy (ies), if any.

    Get Quick Cash in just Minutes!

    Best Personal Loan for you at lowest interest rate
    Instant Apply

    Alternatively, you may have missed paying your credit card bill, or skipped your loan EMI. Or perhaps you have just started to earn and have not yet built a sound credit score. But there is nothing to panic about.

    Also Read | Understanding pre-EMI interest deductions on home loans: What you need to know

    Here we share some of the suggestions that you can follow in order to improve your credit score before you apply for a new credit card.

    These are 6 key ways to improve your credit score:

    1. Pay your outstanding bills on time: Making delayed payments can considerably affect your credit score. So, it is recommended to pay bills on time which include credit cards and loans.

    2. Avoid new credit inquiries: Every time you make a new credit inquiry, your credit score suffers, albeit marginally. So, it is recommended to avoid a new credit inquiry unless it is absolutely essential.

    Also Read | Bad credit score: How to get a personal loan with poor CIBIL score?

    Merely checking your loan-seeking ability out of curiosity is not a recommended practice since it affects your credit score.

    3. Try to maintain old accounts: The longer an old credit account is maintained, the better it is. Just because you are not using an old credit card, you should not ideally close it. It is, therefore, important to remember that as you close your old credit account, your credit limit suffers.

    4. Secured credit card: A secured credit card is the one that you get by keeping the equivalent amount of money as collateral. It is a good and recommended way to build a sound credit profile.

    Also Read | Credit Card: Can banks charge you before activation? Discover the truth

    5. Reduce your credit card debt: It is recommended to keep credit card debt under 30 percent of the total credit card limit to maintain an ideal credit utilisation ratio. For instance, if your credit limit is 10 lakh, try to keep your credit debt under or around 3 lakh.

    6. Regularly checking your credit report:It is important that you check your credit report on a regular basis i.e., at least once a year. Upon checking the credit report, if you find any mistakes, you can surely rectify them.

    However, it is vital to note that these suggestions are only indicative and not exhaustive. There could be some other workable tips that work better in your case and therefore could help improve your credit score before applying for a credit card.

    Compare & Apply for Credit Cards!

    Instant Approval
    Wide Choices
    Apply Now

    Catch all the Instant Personal Loan, Business Loan, Business News, Money news, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

    MoreLess
    First Published:16 Sep 2024, 09:53 AM IST
    Business NewsMoneyPersonal FinanceHow can you improve your credit score before applying for a new credit card?
    Know your CIBIL Score for free
    Get Instant Loan at Low Interest Rates
    Bajaj Finserv
    Loan Amount Upto
    Upto 40 Lacs
    Tenure
    12-60 months
    Rate of Interest
    14% - 18%*
    Processing Fee Upto
    Upto 1.15% of loan amount
    Axis Bank
    Loan Amount Upto
    Upto Rs 50 Lacs
    Tenure
    12-84 months
    Rate of Interest
    starts from 16%*
    Processing Fee Upto
    1.5% of loan amount
    View More Offers
    Calculators
    EMI Calculator
    Calculate your monthly installment amount for a loan based on the principal, interest rate, and tenure
    Income Tax Calculator
    Choose the right income tax regime & discover your tax savings
    Best offers for you
    Personal Loans
    100% Digital, Zero Paperwork.
    Credit score
    Know your score for Free.
    HomeMarketsloanPremiumMint Shorts