How to repair your credit and rebuild financial confidence

One of the biggest factors in your score is credit utilisation. Experts suggest keeping your usage below 30 percent of your total limit.

Why credit repair matters

Past financial mistakes—missed EMIs, high debt, or loan settlements—can leave long shadows on your credit record. While it’s not possible to erase them instantly, consistent efforts can rebuild your profile over time. Minor improvements may show up in three to six months, while bigger fixes could take two to three years.

Start with the basics

The first step is to know where you stand. Pull your credit report and check for errors. Even small mistakes, like an unpaid loan showing as active, can drag down your score. File disputes with the bureau if you find inaccuracies. Once corrected, your score gets a natural lift.

Keep utilisation in check

One of the biggest factors in your score is credit utilisation. Experts suggest keeping your usage below 30 percent of your total limit. The lower the ratio, the better. For example, if your card limit is Rs 1 lakh, aim to keep spending below Rs 30,000 in a cycle to look financially sound to lenders.

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Pay every bill on time

Timely repayment of credit card bills and EMIs is non-negotiable. Even a one-day delay can reflect badly on your report and stay there for years. Setting up auto-debit or reminders helps ensure you never slip up. Over time, a consistent track record builds trust with lenders.

Avoid too many applications

When you’re trying to repair your score, avoid applying for multiple loans or cards at once. Each application triggers a hard inquiry, which can pull your score down further. Instead, focus on improving existing accounts before seeking new credit.

Maintain a healthy mix

A strong profile includes both secured and unsecured credit. That means a blend of products like a car loan or secured credit card along with unsecured loans or regular cards. Too much dependence on one type can hurt your overall profile.

The bottom line

Credit repair is not about shortcuts but about steady effort. By correcting errors, lowering utilisation, paying on time, limiting applications, and diversifying credit, you can rebuild your financial reputation. With patience, your past mistakes don’t have to define your future.