17 October, 2024 | 11:01 IST
Your credit score is a vital number that reflects your creditworthiness. It is a major factor for the approval of loans and new credit card applications. Maintaining a good credit score needs financial discipline and responsible management of credit instruments. Managing credit cards effectively helps in improving your credit score, but there are several other ways to maintain a healthy credit report.
There are various effective strategies you can adopt to enhance your credit score even without having a credit card.
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Before we delve into improving your credit score without a credit card, it’s essential to understand what a credit score is and how it functions. A credit score is a three-digit number that summarises your credit history and indicates your creditworthiness. Typically ranging from 300 to 900, this score is calculated based on various factors, including your payment history, credit utilisation, length of credit history, types of credit used and recent credit inquiries.
Your credit report, generated by credit bureaus, is a detailed account of your credit activity and is used to compute your credit score. Lenders rely on this score to gauge the risk associated with lending money to you. You can check your credit score and the detailed credit report for free on digital platforms like the Moneycontrol app and website.
ALSO READ: What Affects Your Credit Score & How To Build a Healthy Credit Score
Improving your credit score without a credit card is not only possible but can also be straightforward. Understanding your credit health is the first step to tracking and enhancing your score.
Here are ways to help you improve your credit score without a credit card:
Improving your credit score without a credit card may seem tough, but it is achievable with the right strategies. It’s important to regularly check your credit report through online platforms like the Moneycontrol app, where you can monitor your progress and stay informed about your credit health. Also, don’t miss any due EMIs for loans or credit lines. This will help you maintain a healthy credit score even without owning a credit card. A disciplined approach towards debt repayment, responsible use of credit facilities and a regular review of credit score could be significant in improving credit score even if you don’t own a credit card.
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