Credit cards can be incredibly powerful tools for managing your finances and boosting your credit score when used wisely. If you have or are considering a Bajaj Finserv RBL Bank Credit Card, here are 8 ways it can help improve your credit score:
1. Timely Repayments:
- Your repayment history contributes 35% to your credit score. Bajaj Finserv RBL Bank Credit Cards offer autopay features and options to convert high-value purchases into manageable monthly payments, helping you maintain a positive repayment record.
2. Optimising Credit Utilisation:
- This factor makes up 30% of your score. Keep your credit utilisation below 30% of your limit by using your card regularly and paying off your bills on time. This shows lenders you’re not overly reliant on credit.
3. Diversifying Credit Mix:
- A diverse credit portfolio is beneficial. Adding a Bajaj Finserv RBL Bank Credit Card to your existing credit types can improve your credit mix, showcasing your ability to handle different types of credit responsibly.
4. Building a Longer Credit History:
- The length of your credit history affects 15% of your score. Keeping your Bajaj Finserv RBL Bank Credit Card active and in good standing, especially with annual fee waivers, helps build a solid credit history.
5. Managing Credit Enquiries:
- Hard enquiries from frequent credit applications can hurt your score. Share your mobile number to check for pre-approved offers with your Bajaj Finserv RBL Bank Credit Card to minimize hard enquiries.
6. Maximising Rewards:
- Earn reward points on almost every transaction, with extra points on online and international spending. Use your card for everyday expenses and pay the balance in full to build credit while earning rewards.
7. Leveraging Interest-Free Periods:
- The Bajaj Finserv RBL Bank Credit Card offers a 50-day interest-free period on ATM cash withdrawals. Use this feature wisely and repay within the interest-free period to avoid debt that could impact your credit score.
8. Regular Credit Monitoring:
- Regularly check your credit report and monthly statements for errors or fraudulent activity. Staying informed helps safeguard your credit health and address issues promptly.