A good credit score opens the door to faster loan approvals, lower interest rates, and higher loan eligibility. While credit scores don’t improve overnight, disciplined actions can lead to noticeable improvement within 3 to 6 months. This guide focuses on practical, proven steps that actually work.

Step 1: Check Your Credit Report for Errors

Start by downloading your credit report from bureaus like CIBIL, Experian, or Equifax. Look for:

• Wrong personal details
• Loans shown as unpaid despite closure
• Duplicate accounts
• Incorrect overdue amounts

If you find errors, raise a dispute immediately. Correcting mistakes alone can boost your score quickly.

Step 2: Pay All EMIs and Credit Card Dues on Time

Payment history has the highest impact on your credit score.

Even a single missed payment can pull your score down significantly.

Action Tip:

• Set auto-debit for EMIs and credit cards
• Always pay at least the minimum due if full payment isn’t possible

Consistency over 3–6 months makes a visible difference.

Step 3: Reduce Credit Card Utilization Below 30%

High credit card usage signals financial stress.

Example:

If your total credit limit is ₹1,00,000, try to keep usage below ₹30,000.

Ways to reduce utilization:

• Pay outstanding balances
• Split expenses across multiple cards
• Request a credit limit increase (without increasing spending)

Lower utilization improves your score steadily.

Step 4: Avoid Applying for New Loans or Cards

Every loan or credit card application creates a hard enquiry, which temporarily lowers your score.

For the next 3–6 months:

• Avoid unnecessary loan applications
• Do not compare loans by applying to multiple banks
• Use expert assistance to apply only where approval chances are high

Step 5: Don’t Close Old Credit Accounts

Older accounts strengthen your credit age, which positively affects your score.

Even if you don’t use an old credit card:

• Keep it active
• Make a small transaction every few months
• Pay it off immediately

Closing old accounts can reduce your score.

Step 6: Clear Small Loans and Overdues

If you have multiple small loans or overdue amounts:

• Close them first
• Focus on high-interest debts like credit cards
• Avoid loan settlements unless unavoidable

Clearing small dues improves your FOIR and credit profile together.

Step 7: Maintain a Healthy Credit Mix

A mix of secured loans (home loan/LAP) and unsecured loans (personal loan/credit card) shows responsible borrowing behavior.

Avoid depending only on unsecured credit for long periods.

What to Avoid During This Period

• Skipping EMIs
• Paying only minimum dues repeatedly
• Multiple loan enquiries
• Loan settlements
• Using full credit limits

These actions can reverse your progress.

Realistic Credit Score Improvement Expectation

In 3 months:

• Small improvement if discipline is followed

In 6 months:

• 50–100 point improvement is possible (profile-dependent)

Results vary based on starting score and past repayment behavior.

How Direct Credit Helps You

At Direct Credit, we analyze your credit report in detail and guide you on specific actions to improve your score faster. We also help you apply only with lenders where approval chances are high — protecting your credit profile.

Contact Us

Struggling with a low credit score or planning a loan in the next few months? The experts at Direct Credit can help you improve your credit profile and get loan-ready faster. Call us today at 9010031003 for personalized credit guidance and stress-free loan support.