Many people believe that a higher income automatically improves a credit score. In reality, your earnings have very little to do with your credit rating. Even a high earner can have a poor score, while someone with a modest income can maintain an excellent one. What truly matters is your credit behaviour, not your salary. By making a few smart changes, you can raise your score from 550 to 750 without increasing your income. Here’s how you can do it:

1. Clear All Pending Dues

The first step is to settle any outstanding debts. If you have unpaid credit card bills or delayed EMIs on a car loan or personal loan, clear them as soon as possible. Timely repayment is one of the biggest factors in maintaining a healthy credit profile.

2. Avoid Applying for Multiple Loans

Every time you apply for a new loan or credit card, lenders perform a hard inquiry on your credit report. Multiple inquiries in a short period can negatively impact your score. Apply for new credit only when absolutely necessary and space out applications.

3. Keep Credit Utilization Below 30%

Your credit utilization ratio—the percentage of your credit limit that you use—has a significant effect on your score. Try to use less than 30% of your total limit. For example, if your credit card limit is ₹10,000, keep your outstanding balance below ₹3,000. Lower utilization signals responsible credit management.

4. Maintain a Balanced Credit Mix

Having a healthy combination of secured loans (like a home or car loan) and unsecured loans (such as personal loans or credit cards) can positively impact your score. A balanced credit mix shows lenders that you can handle different types of credit responsibly.

5. Keep Old Credit Cards Active

Your credit history length plays an important role in your score. The older your credit accounts, the better it reflects on your creditworthiness. If you have an old credit card—even one you rarely use—keep it open to maintain a long credit history.

6. Monitor Your Credit Score Regularly

Checking your credit score does not harm it. Platforms like Paytm now offer free credit score checks, allowing you to view detailed reports of your active loans and credit cards. Regular monitoring helps you spot errors and track improvements.

Bottom Line:
Improving your credit score is not about earning more but about being disciplined with repayments, controlling spending, and maintaining a healthy credit history. By following these simple yet effective strategies, you can move your score from 550 to 750 and enjoy easier loan approvals, lower interest rates, and stronger financial credibility.