Six Tips to improve your Credit Score With Your IndusInd Credit Card

Posted on Monday, July 17th, 2023 | By IndusInd Bank

Stepping into the world of credit can seem daunting, especially when you’re trying to build a good credit score. But, did you know that your credit card, often viewed as a liability, can turn into an asset in your journey?Indeed, your credit card holds enormous potential to shape your credit history positively. Here are a few tips that can empower you to leverage your credit card and improve your credit score.

Tip #1: Timely bill payments – your ticket to a healthy credit score

Punctuality pays, especially when it comes to credit card bill payments. Your payment history is a vital cog in the credit score wheel, accounting for 35% of your overall score. Avoid late payments, as they can dent your credit rating. If you are not a fan of keeping track manually, opt for autopay to facilitate hassle-free, on-time payments.

Tip #2: Pay beyond the basic amount

Paying the minimum amount on your credit card bill can only take you so far. To speed up your journey towards financial freedom, try paying your credit card bill in full each month.

If you’re juggling multiple credit card debts, channelize larger payments towards one account while meeting minimum requirements on others. As one balance clears, shift focus to the next one, and witness your debts diminish steadily.

Tip #3: Eliminate debt, don’t shuffle it

Be mindful of your credit utilisation, or the amount of available credit you’re using since this can greatly influence your credit score. Creditors tend to frown upon borrowers with high credit utilisation rates.

Aim for a low credit utilisation ratio to boost your credit score. Aiming for a 30% credit utilisation ratio is considered ideal.

Tip #4: Clean credit reports for clear progress

Maintaining an accurate, up-to-date credit report is integral to improving your credit score. Regularly check your credit report for discrepancies and rectify them at the earliest. You can access your credit report via reliable online platforms, but beware of hidden charges for additional services.

Tip #5: Balancing debt and income – the DTI factor

The debt-to-income (DTI) ratio serves as a gauge for lenders to assess your financial health. It reflects your ability to manage and repay debts based on your income.

Strive for a low DTI ratio to present yourself as a low-risk borrower. Remember, a favourable DTI ratio can be a green signal to potential lenders.

Tip #6: Keep your credit cards intact

A lesser-known fact is that the length of your credit history plays a crucial role in determining your credit score. Retaining old and unused credit cards can keep your credit history intact, which can positively impact your score.

However, if an unused card comes with an annual fee, it might be more prudent to close it.

Harnessing the power of IndusInd Bank Credit Cards to improve your credit score

IndusInd Bank offers a range of credit cards in its “Instant Credit Card” range. For instance, the Legend Credit Card comes loaded with premium features that seamlessly blend with various facets of your lifestyle while assisting in strengthening your credit score. Its unique offerings include:

• Movie offers for the cinephile in you. As a cardholder, you can avail of a ‘Buy One Get One Free’ offer on movie tickets through BookMyShow. Additional benefits include a special discount of ₹50 on food and beverage selection.
  
• Enticing travel offers and benefits such as a discounted foreign currency markup of 1.8%, providing savings on international transactions.
  
• Global access to more than 600 lounges across the world through the Priority Pass. This ensures your travel experience is wrapped in comfort and luxury.
  
• A dedicated team of professionals available round-the-clock to assist you with flight booking, hotel reservations and travel-related support. This complimentary service takes care of your travel needs, no matter where you are in the world.
  
• Concierge services to provide you with comprehensive travel information, recommendations and assistance for your trips. From details about your destination, weather updates and important landmarks to modes of transport, they’ve got you covered.
  
• Ensuring the security of your transactions with the unique ‘Total Protect’ programme that provides coverage equal to your card’s credit limit. This also extends to add-on cards. This programme offers protection against unauthorised transactions and counterfeit fraud, providing insurance cover for up to 48 hours prior to you reporting the loss of your card.
  
• A complimentary personal air accident insurance cover of up to ₹25,00,000, offering financial security for your peace of mind.
  
  
• Auto Assist service to ensure your road trips go as planned. From unexpected flat tyres, vehicle breakdowns or other emergencies, the Auto Assist service provides on-the-spot assistance 24×7.

Improve your Credit Score: Conclusion

Building a robust credit score doesn’t happen overnight. It is a strategic journey that requires timely payments, low credit utilisation, and diligent financial planning. Remember, credit cards aren’t just for spending; they can be harnessed as powerful tools to improve your credit score when used correctly.

The future of your financial health begins now, with IndusInd Bank Instant Credit Cards. Discover the array of options available, and choose the card that complements your lifestyle and goals. Empower your financial future by applying for an IndusInd Bank Credit Card today.

Stand poised at the threshold of financial freedom with a solid credit score, beginning with just one wise decision. Don’t wait for tomorrow. Apply now, and let your credit card pave the way for a prosperous future.

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.