Tips for building credit score shared in India

Manish Jain, the Managing Director of Experian India, has offered advice on how to build a good credit score for those with little or no credit history. A credit score is a number between 300 and 900 that shows how likely someone is to repay borrowed money. A higher score is better and can lead to easier loan approvals and lower interest rates. For people starting with no credit history, Jain suggests using a secured credit card or taking out a small loan with a fixed deposit. Using these responsibly by keeping low balances and paying on time can help establish a positive credit record. Improving a low credit score is also possible, according to Jain. He recommends identifying the reasons for the low score, such as missed payments or reporting errors. Important steps include paying bills on time, reducing outstanding debts, and not using too much credit. Jain emphasizes the need to regularly check credit reports to track progress and fix any errors. Consistent efforts and smart financial habits can lead to a strong credit profile, making it easier to access credit. Key factors that affect credit scores include repayment history, credit mix, and the length of credit history. Paying on time is crucial, and having a variety of loans shows responsible borrowing. A long credit history builds trust with lenders, while applying for new credit too frequently can raise concerns.