How to Fix Your Credit Score ?

A low credit score might feel like a dead-end, but here’s the truth: your credit score isn’t permanent. It reflects how you’ve handled credit so far—and it can change for the better. In fact, with just a few consistent financial habits, you can improve your credit score within a few months.

Whether you're planning a financial comeback or preparing for a major purchase, it all starts with understanding how your score works and how to take control of it.

What You Can Start Doing Today

✅ 1. Check Your Credit Report Regularly

It might sound basic, but errors on your credit report are more common than you'd think. Old loans that are marked open, duplicate entries, or even incorrect defaults can drag your score down. Make it a habit to check your credit report every few months and flag anything that looks suspicious.

Tip: JM Financial Services recommends reviewing reports from all three major credit bureaus—CIBIL, Experian, and Equifax—for a complete picture.

🚫 2. Avoid Frequent Credit Applications

Each time you apply for a loan or credit card, the lender pulls your credit report. These are called hard inquiries, and too many in a short period can reduce your score.

Only apply when necessary and avoid the temptation to grab every pre-approved offer in your inbox.

💳 3. Keep Older Credit Cards Open

Thinking of closing that old credit card? Think again.

A long-standing credit card adds valuable depth to your credit history. The older your credit accounts, the more trustworthy your profile appears to lenders.

Bottom line: The age of your credit matters—don’t let go of those old accounts unless absolutely necessary.

What Really Helps in the Long-Term

⚖️ 4. Maintain a Balanced Mix of Credit

A healthy credit profile shows that you can handle different types of borrowing—both secured loans (like a home loan) and unsecured credit (like credit cards).

Having a variety of credit lines helps lenders see you as a reliable borrower, as long as you're not over-leveraged.

⏰ 5. Pay On Time, Every Time

If there’s one golden rule in the credit world, this is it: never miss a due date.

Timely payments make the biggest impact on your credit score. Even one missed EMI or credit card payment can set your score back by 50 to 100 points.

Pro Tip: Set auto-debit instructions to avoid forgetting.

📉 6. Keep Your Credit Card Usage Low

Your credit utilization ratio is the amount of credit you're using compared to your total limit. Ideally, it should stay below 30%.

If your limit is ₹1,00,000, try not to spend more than ₹30,000 in a billing cycle. This shows financial discipline and strengthens your score over time.

Your Credit Score Is a Snapshot—Not a Sentence

Think of your credit score as your financial passport. It opens doors to loans, premium credit cards, lower interest rates, and even job opportunities in some sectors.

But here’s what most people forget: it’s not a fixed number. It changes with your behavior, so even if you’ve had a rough patch financially, recovery is always possible.

So if you’re planning your comeback, start with clarity, not panic.

FAQs on Improving Your Credit Score

Q1. How often should I check my credit score?
Ideally, once every 3–4 months. Frequent checks keep you informed and help catch errors early.

Q2. Will checking my credit score lower it?
No. When you check your own score (a soft inquiry), it doesn’t affect your score.

Q3. How long does it take to improve a credit score?
With consistent efforts—timely payments, low utilization, and no new defaults—noticeable changes can be seen within 3–6 months.

Q4. Can JM Financial Services help me build credit?
Yes. JM Financial Services provides personalized financial advisory, helping clients navigate loans, credit planning, and long-term wealth strategies.

Q5. Should I take a loan to improve my score?
Only if needed. A loan repaid on time can improve your score, but unnecessary borrowing just to boost credit isn’t advisable.