In today’s scenario, using a credit card is one of the most effective and smartest methods to rebuild your credit score. Poor credit scores can stop you from financing your higher education, buying a property, take up advances for business investment and many more. Now, most people feel building a good credit score from scratch is a daunting task.

However, it’s not the case. All you need to do is to keep a few pointers in mind to develop high credit scores effectively.

Here are the top 5 strategies to follow –

• Make timely payments

A critical factor in developing a credit history is to make the payments on time. Most credit cards offer you the option to set-up automatic payments for the minimum due amount – ensuring you never miss a payment even accidentally. Credit card providers report every late payment to the credit bureau – hence do everything to prevent defaulting on payments.

• Keep the credit utilisation ratio as minimum as possible

Cards come with a pre-specified credit limit. This is the maximum line of credit that the user can utilise for transactions or purchases. Credit utilisation ratio refers to the percentage of that credit limit the user utilises.

It is recommended to keep this ratio below 40% to maintain the CIBIL score. Prevent incurring interest by paying off all your balances every month. Keeping to 40% of the available credit will deem you as a creditworthy individual and help you avail better terms in the future.

• Keep all your credit card accounts functional

Every credit scoring model rewards users who possess a long credit history. Thus, try to keep all your credit cards accounts functional, even if you want to avail a new credit card. If you happen to close a credit account, it reduces the total vintage of your credit history. Lenders prefer borrowers with a long and clean credit history. Note that you should repay all existing credit card debts before applying for a new card.

If you’re considering opening a new one, you can opt for a Bajaj Finserv RBL Bank SuperCard for its industry-first features such as –

• Interest-free ATM cash withdrawals for up to 50 days.
• Welcome gift of 20,000 reward points.
• Attractive discounts and exclusive benefits from the partner stores while purchasing clothes, accessories and groceries.
• The SuperCard also comes with zero-fraud liability coverage to mitigate cybercrime threats.

Know how to apply for Bajaj Finserv RBL Bank SuperCard online to avail and enjoy its numerous benefits.

Bajaj Finserv also brings you pre-approved offers that make the process of availing them hassle-free and saves time as well. These offers are available on credit cards as well as on unsecured credits like personal loans, business loans and secured advances such as home loans among numerous other financial products. You can check out your pre-approved offer by sharing a few necessary details like your name and contact number.

• Avoid opening multiple accounts at once

Once you have access to a substantial credit, avoid applying for multiple credit cards. Every time you avail a new credit card, your credit score takes a hit once there’s a hard inquiry on your credit report. Hence, you must know how to use a credit card wisely.

• Check your credit report regularly

Remember, even if you’ve managed to do everything right – it might not reflect on your credit report corrected. Hence, it’s your responsibility to ensure that the information on the credit report is accurate. In case of discrepancies, contact your credit card issuer or the credit bureau to resolve the same as soon as possible.

Follow these 5 easy tips to start building a good CIBIL score with your credit card. Maintain a strong financial habit of repayments to avail better terms on future credit card or loan applications with a high score.