7 proven tips to keep your credit score above 700 consistently

Maintaining a credit score above 700 is essential for getting favourable loan and credit card offers with lower interest rates and higher approval chances.

To achieve this, it’s crucial to follow certain financial habits, starting with paying all bills, credit card dues, personal loan EMIs, and utility payments on time without fail.

Setting up autopay for monthly bills can help avoid missed payments, which directly impact your credit score. Additionally, keeping your credit utilisation ratio low ideally under 30% of your total limit plays a key role in maintaining a high credit score in the country.

High credit score: Follow these steps

I. Pay your bills on time to improve credit score: One of the most key factors is the payment history. Try to pay at least the minimum due before the due date on credit cards, loans, and utilities. It is recommended to set up automatic payments or reminders to avoid missed payments.

II. Maintain low credit utilisation ratio for a high credit score: You should aim to use less than 30% of your total credit limit. In fact, it is suggested to keep it under 10 per cent for good results.

III. Limit new credit applications to protect your credit score: Every credit card or personal loan application triggers a hard inquiry that can temporarily lower your score. Not many people are aware that the new accounts also tend to lower your average age of credit which is a factor in your score.

IV. Keep old credit accounts open to boost credit score longevity: You should keep old credit card accounts open, particularly if they have no fees. Length of credit history also weighs on your credit score.

V. Build a healthy credit mix for better credit score stability: Credit mix indicates your ability to manage myriad categories of credit (credit cards, student loans, personal loans and car loans). Typically you do not require each type of credit, but it is better to have a healthy mix.

VI. Lower your credit card balances before statement date: Even if you pay your credit card bills in full, large reported balances can still hurt your score before your payment posts. That is why you should try to pay before the statement closing date to report a low balance.

VII. Avoid too many loan applications to avoid hard inquiry damage: When you apply for too many personal loans, it leads to hard inquiries. And too many inquiries in a short span of time can lead to a credit risk. At the same time, soft inquiries do not affect your score.

What is the fastest way to get a 700 credit score?

The fastest way to get a 700 credit score is by paying all bills on time, reducing credit card balances, and limiting new loan applications. Maintain a credit utilisation ratio below 30%, avoid missed payments, and monitor your credit report regularly to correct errors and boost your credit score quickly.

If in doubt always consider reaching out to certified financial advisors to seek guidance with regards to your borrowing practices. Your credit score is nothing but a reflection of your borrowing and financial management practices. A high score that is why speaks volume about your repayment potential, honesty and integrity. 

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Disclaimer: Mint has a tie-up with fintechs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.