As the New Year 2026 begins, borrowers in the country should focus on strengthening their credit scores to unlock better financial opportunities throughout the year. This becomes important as lending institutions rely heavily on one’s credit score to decide on personal loans, credit cards and approve limits.
A solid credit score can also help expedite the processing of new credit products such as home loans, personal loans, and credit cards. The good news is that sincere, small, and consistent habits can make a real difference in helping with this. Here are four simple yet powerful resolutions one can take to improve their credit score.
1. Build discipline into repayments
Your repayment history carries the highest weight in credit scoring. This makes punctuality and sincerity with repayments indispensable. You can build discipline in repayments by:
- Paying personal loan EMIs, home loan EMIs and credit card bills on or before the due date.
- Make sure that you never miss any due dates. Set automatic debits to meet expenses.
- Ensure that you settle at least the total amount due on credit cards, not just the minimum payment.
Remember, even one delayed payment can negatively impact your credit score for months. That is why consistency with one’s finances matters more than intensity.
2. Use existing credit smartly
How you manage available credit is closely tracked by bureaus.
- Keep credit utilisation below 30% of the sanctioned limit.
- Avoid maxing out limits, especially across multiple accounts.
- Spread spending evenly rather than piling it on one line of credit.
Lower utilisation signals control and improves lender confidence over time.
3. Clean up, clear disputes and monitor your credit report
Errors are more common than many borrowers realise. One should raise disputes promptly with their respective credit bureaus and focus on getting them resolved smoothly. You can achieve this by:
- Checking your credit report at least once a year with major bureaus.
- Disputing inaccuracies or any discrepancies, such as wrong balances or closed accounts shown as working or active.
- Ensure that you avoid hard inquiries by applying for new credit only when necessary. Only apply for a new loan when you have no other option left; first, try to meet expenses with savings if possible.
Respecting your finances and regular monitoring help you in spotting issues early. It also fosters good habits that can go a long way in helping with proper financial planning.
4. Stay calm, think long term, not look for quick fixes
Credit scores reward borrowers who are predictable and stable with their repayments, and are not fond of shortcuts in meeting their debt obligations. This resolution can be fulfilled by:
- Keeping older, well-managed accounts such as loans and credit cards active wherever possible.
- Never rush into opening new accounts, such as availing new personal loans, credit cards, and other similar debt products.
- Such a practice can have long-term ramifications for your credit profile, as frequent hard inquiries can lower your credit score, thereby complicating the approval of new loans and credit cards.
- To improve, give your credit profile time; credit scores generally rise gradually as one continues to maintain healthy credit behaviour for months.
In summary, improving one’s credit score is less about dramatic moves. It is more about consistency and disciplined financial hygiene. Thus, by paying on time, managing limits prudently and reviewing your credit report on a regular basis, you can start the new year on a stronger footing.
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Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards, and credit scores. Mint does not promote or encourage taking credit, as it comes with risks such as high interest rates and hidden charges. We advise investors to discuss with certified experts before taking any credit.
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