Did you know your income has nothing to do with your credit score? You could be making lakhs and still have a poor score or earning much less and yet have a strong credit score.
Your credit score depends on how you manage credit, not how much you earn.
Why Your Credit Score Matters
A credit score has become an essential financial tool. It is checked when you:
- Apply for a loan
- Get a credit card
- Rent a house
A low score can reduce your chances of approval or increase your cost of borrowing.
How to Improve Your Credit Score
Improving your credit score isn’t about earning more. It’s about building better credit habits. Here are four proven ways:
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Clear Pending Dues
Even a single delayed EMI can lower your score by 50 to 100 points. Timely payments are the most important factor.
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Limit Loan Applications
Every loan or credit card application leaves a mark on your report. Too many applications in a short period hurt your score.
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Manage Credit Card Usage
If you use 70–80% of your card limit regularly, lenders view you as financially stressed. Try to keep usage below 30–40% of your total credit limit.
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Balance Your Credit Mix
A healthy mix of secured loans (like home or car loans) and unsecured loans (like credit cards or personal loans) improves your score.
Bottom Line
Your income doesn’t change your credit score your habits do. Clearing dues on time, limiting loan applications, managing credit card usage, and balancing your loan portfolio are the real ways to build a strong credit score.
