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Top Factors That Impact Credit Score Positively


A decent credit score indicates the borrower’s capability and willingness to repay credits on time. Therefore, it provides several benefits to the borrower, like the privilege to negotiate credit amounts, avail of credit card rewards, lower interest rates on loans, and gives him the status of a good debtor. In this blog, we will acquaint you with some factors that impact your credit score positively so that you get acquainte with some tips about How to improve cibil score. Adhering to these Free CIBIL score increasing practices will help you achieve a high CIBIL score and increase your creditworthiness.

Top Factors that Impact Credit Score Positively

1. Regular evaluation of the credit report:

An error-free credit report impacts your credit score positively. A credit report is a combination of the user’s credit activities and history, personal information, and several other factors. There is a possibility that the credit bureaus might make some mistakes while preparing the credit reports and putting in the values. Therefore, you must evaluate your credit report from time to time to by conducting a Free cibil score check online to ensure there are no errors. If you point out any errors, you can report and get those corrected immediately to prevent a reduction in your credit score. 

2. Timely credit repayment:

To achieve a good credit score, it is important to pay off your loan installments in a timely manner. The credit score gets negatively affected even if there is a single delayed or missed payment. This makes regaining a good credit score challenging for the borrower. Therefore, you must set reminders for timely repayment of loan EMIs and credit card due dates. Clearing all the repayments with the time limit impacts the credit score positively.

3. Credit Utilization Ratio:

The recommended credit utilisation ratio is about 30%. Maintenance of this ratio while using up credits helps the borrower to achieve a good credit score. The opposite occurs if the credit utilisation ratio is more than 30%, that is if the credits are over-utilised. Maintaining a good credit utilisation ratio indicates the borrower’s efficiency in managing finances, which, in turn, makes the banks or lenders trust their ability to repay the loan amount. If your expenses exceed the credit limit, requesting the relevant bank to increase the credit limit is wise. 

4. Avoid submitting multiple credit card applications:

While one is working towards improving their credit score or immediately after a loan has been reject, it is advisable to avoid applying for new credit cards. This is because an application for a new credit card or a loan gives rise to multiple hard inquiries, indicating the borrower’s credit hunger behaviour. Resultantly, further loan applications often get rejected, and the credit score decreases. 

5. Pay off your debts on time:

If you want to achieve or maintain a good credit score, you must pay off your debt repayments in full within time without leaving any outstanding balances. Try to settle the entire payment if there is a good amount of cash in your hands. This will improve your creditworthiness and help you maintain a good credit history. 

6. Set timely reminders for your bills and EMIs:

If you have a busy schedule, it is easy for you to forget the payment dates for your bills and other dues. Setting a reminder to help you pay your bills on time will positively solve this problem and impact your credit score. You can also opt for automatic online bill payment methods so that the money is automatically deduct from your account without any delays. 


Although there are factors that affect the credit score positively and negatively, it is important to realise that a credit score is not built or damage in a day. Therefore, achieving a good credit score takes time and patience. Manage your expenses well, pay your bills on time, conduct Free cibil score check online from regularly, and make responsible financial decisions. All these steps will eventually help you achieve a good credit score.

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