How can I build and improve my credit score?

There are several ways to build and improve your credit score in India:

1. Pay your bills on time: Your payment history is the most important factor in determining your credit score. Paying your bills on time can have a positive impact on your credit score.

2. Maintain a low credit utilization ratio: Your credit utilization ratio is the amount of credit you're using compared to the amount you have available. A lower credit utilization ratio indicates that you are not overextending yourself, which can have a positive impact on your credit score.

3. Monitor your credit report: Regularly checking your credit report can help you identify errors and fraudulent activity that can negatively impact your credit score. You can obtain a free credit report once a year from credit bureaus like CIBIL, Experian, or Equifax.

4. Apply for credit selectively: Applying for credit too frequently can hurt your credit score. Apply only when you need it and avoid opening too many accounts at the same time.

5. Maintain a good credit mix: Having a mix of credit types like secured loans, unsecured loans, credit cards, etc., can positively impact your credit score.

6. Keep your credit accounts open: The age of your credit accounts is also considered in calculating your credit score. Keep your accounts open and active to maintain a good credit score.

7. Avoid defaulting on loans: Defaulting on a loan or payment can severely damage your credit score. Try to avoid defaulting and if you're having trouble making payments, reach out to your lender for assistance.

Overall, building and improving your credit score takes time, patience, and responsible credit behavior.