Maintaining a credit score above 700 requires a mix of timely payments, responsible credit usage, and smart credit behavior. Here are six key habits you must follow to ensure your score stays healthy and strong.
Introduction: Why a 700+ Credit Score Matters
Your credit score is more than just a number—it’s your financial reputation. A score above 700 is considered “good” to “excellent” and opens doors to better loan terms, higher credit limits, lower interest rates, and even better job prospects in some sectors.
Your credit score is more than just a number—it’s your financial reputation. A score above 700 is considered “good” to “excellent” and opens doors to better loan terms, higher credit limits, lower interest rates, and even better job prospects in some sectors.
Credit scores in India are issued by bureaus like CIBIL, CRIF High Mark, Experian, and Equifax, and typically range from 300 to 900. A score above 700 reflects strong financial discipline and creditworthiness.
But how do you maintain it? Let’s dive into the top 6 smart moves you need to make.
1. Keep Your Credit Utilisation Ratio Below 30%
The credit utilisation ratio (CUR) is the percentage of your available credit that you’re currently using. It is a crucial factor affecting your credit score.
➤ What’s the ideal CUR?
Experts recommend keeping your CUR under 30%. For example, if your credit card limit is ₹1,00,000, your total monthly usage should not exceed ₹30,000.
➤ Why does this matter?
High credit utilisation indicates financial stress, making lenders believe you’re over-reliant on credit. It can sharply reduce your score even if you pay on time.
Quick Tips:
- Request a credit limit increase if your usage is consistently high.
- Spread expenses across multiple cards if you have more than one.
- Pay off your balance twice a month to keep utilisation low.
2. Always Pay Your EMIs and Credit Card Bills On Time
Your payment history is one of the most influential components of your credit score. Even one missed EMI or credit card bill can cause your score to drop by 50–100 points or more.
➤ Types of payments that affect your score:
- Credit card dues
- Personal loan EMIs
- Home or car loan payments
- Buy Now, Pay Later (BNPL) dues
➤ What happens if you miss a payment?
Lenders report late payments to credit bureaus after 30 days. It gets recorded and may stay on your credit report for up to 7 years.
Quick Tips:
- Set auto-debit mandates for all loan payments.
- Use payment reminders or budgeting apps.
- Make at least the minimum payment if full payment isn’t possible.
3. Maintain a Healthy Mix of Credit Types
Your credit score improves when you show responsible handling of both secured and unsecured loans.
➤ What is a healthy credit mix?
- Secured loans: Home loans, car loans
- Unsecured loans: Credit cards, personal loans
Lenders and credit bureaus view borrowers with a balanced credit portfolio more favorably.
➤ What to avoid:
- Relying only on unsecured credit
- Too many personal loans or credit cards
Quick Tips:
- If you have only credit cards, consider taking a small secured loan like a gold loan.
- Avoid multiple unsecured loans unless necessary.
4. Avoid Multiple Loan Applications and Hard Inquiries
Every time you apply for a loan or credit card, the lender runs a hard inquiry on your credit report. Too many of these in a short time can lower your score and indicate that you’re financially unstable.
➤ What are hard inquiries?
These are credit checks done by lenders before approving a loan or credit card.
➤ Why are they risky?
Too many applications signal credit-hungry behavior and reduce lender trust.
Quick Tips:
- Apply only when necessary.
- Space out loan or card applications.
- Use pre-approved offers or soft inquiry tools if available.
5. Regularly Monitor Your Credit Report
Errors in your credit report—like wrong account details, fraudulent accounts, or misreported late payments—can silently damage your credit score.
➤ Where to get your report?
You’re entitled to one free credit report per year from each of the credit bureaus in India: CRIF High Mark, Experian, Equifax, and CIBIL.
➤ What to check:
- Incorrect loan or credit card entries
- Fraudulent accounts or inquiries
- Wrong personal details or PAN mismatch
Quick Tips:
- Set a reminder to check your report every 6 months.
- Dispute errors online with the respective credit bureau.
- Inform your lender if they’ve reported something wrong.
6. Don’t Close Old Credit Cards Without a Reason
Many people think closing old or unused credit cards helps their score. In reality, it often does the opposite.
➤ Why should you keep old cards?
- It adds to your credit history length (which affects your score).
- It increases your overall credit limit, lowering your CUR.
- Some cards offer lifetime free benefits, cashback, or rewards.
➤ When to close a card:
- If it has a high annual fee and no value
- If it tempts you into overspending
Quick Tips:
- Use old cards occasionally for small bills to keep them active.
- Set up auto-pay for Netflix or phone bills on them.
Bonus Tips to Boost Your Credit Score Faster
- Use credit cards for regular expenses and pay in full every month.
- Never co-sign loans unless you fully trust the person.
- Keep track of your debt-to-income ratio.
- If facing difficulty, talk to your lender early and consider restructuring.
Final Thoughts: Credit Score Is a Long-Term Game
A credit score above 700 doesn’t happen overnight, and maintaining it takes discipline. But the payoff is worth it—lower interest rates, faster approvals, and stronger financial freedom.
By staying consistent with these six habits—low CUR, timely payments, healthy credit mix, minimal hard inquiries, regular checks, and keeping old cards—you can build and protect a stellar credit score.