Can I Boost my Credit Score by Using Credit Card?

Posted on Friday, February 9th, 2024 | By IndusInd Bank

Your credit score is a pivotal number that impacts various aspects of your financial life. It determines your eligibility for loans, credit cards, and mortgages amongst others. A good credit score can also give you the opportunity for favourable interest rates, better loan terms and increased purchasing power. Naturally, many individuals wonder if they can enhance their credit score directly through their credit card usage. Let’s dive into this intriguing concept.

Understanding the Relationship Between Credit Cards and Credit Scores

Your credit card indeed has a massive impact on your credit score. Here’s how:

1. Payment History: Timely payments of your credit card bills contribute significantly to your credit score. Consistently paying your credit card bills on time demonstrates financial responsibility and can positively impact your credit score.

• Credit Utilization Ratio: This ratio reflects the amount of credit you’re using compared to your total available credit. Keeping your credit card balances low relative to your credit limits can help you improve your credit score.

• Credit Mix: Maintaining a diverse mix of credit accounts, including credit cards, can positively influence your credit score.

• Length of Credit History: A longer credit card history also positively boosts your credit score. Responsible credit card usage over time contributes to a positive credit history.

Leveraging IndusInd Bank Credit Card

IndusInd Bank offers a diverse mix of credit cards designed to cater to diverse financial needs and lifestyles. These cards also provide you exclusive perks and benefits that can help you manage your finances and improve your credit score in the long run.

• Flexible Payment Options: Now you can enjoy the ease of payments with IndusInd Bank Credit Cards. Whether you prefer online payments, pos, or auto-debit facilities, IndusInd Bank has you covered. You can even pay your premiums via EMI on your preferred terms with IndusInd Bank credit cards.

• Never Expiring Reward Points: With IndusInd Bank Credit Cards, you can enjoy reward points with no expiry date. Redeem these points for discounts on dining and shopping or cash in your card account. 

• Secure Transactions: IndusInd Bank is committed towards the security of your transactions. With features like PIN authentication, OTP verification and IndusInd Bank’s Total Protect feature, you can rest assured that your payments are always secure.

• Lifetime Free Credit Cards: IndusInd Bank offers a wide variety of credit cards, some of which are lifetime-free. It means you will have to pay 0 Joining Fees and Annual Fees while enjoying all the benefits of a credit card.

Tips to Improve Your Credit Score with Your Credit Card

To make the most of your credit card and boost your credit score, you must consider these tips:

• Pay Your Bills on Time: Timely payments are crucial for a positive credit history and score. It is advisable to set up automatic payments or reminders for you to never miss a bill deadline.

• Keep Credit Utilization Low: Aim to keep your credit card balances well below your credit limits to maintain a healthy credit utilization ratio.

• Monitor Your Credit Report: Regularly review your credit report for errors or inaccuracies that could potentially harm your credit score. Report any error you find to the respective bureau immediately.

Conclusion

Your credit card can indeed be a valuable tool for improving your credit score when used responsibly. By leveraging the perks and benefits of IndusInd Bank credit cards, practising prudent credit management habits, and staying informed about your credit profile, you can take significant strides towards enhancing your financial well-being. Remember, responsible credit card usage not only improves your credit score but also lays the foundation for a stable and prosperous financial future. So, what are you waiting for? Apply for your IndusInd Bank Credit Card and enjoy instant approval.

Apply Now

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.