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Maintenance Of Credit Card Can be Good For Future Use

Credit score has an impact on financial activities such as loans and credit card limits, making it critical to keep a strong credit score. Late or missed payments can result in a low credit score. Though the RBI has instructed credit bureaus to disregard missed payments for six months beginning March 2020, it is critical to maintain making regular payments to avoid a greater interest burden afterwards.

The most important thing to remember is to prioritize payments based on their proportional importance to your long-term financial health. So, if you haven’t done so already, evaluate your credit report and devise a financial strategy to safeguard your credit score during this period of uncertainty. Are you curious as to how?

Here are a few:


1. Recognize the factors that affect your credit score

A list of risk variables that lenders examine when evaluating your creditworthiness will be included in your credit report. It outlines the five most important elements to consider in order to raise your credit score over time.

The following are the elements:

1.Receiver’s history of payments
2.The debt amount
3.Credit history length
4.A new line of credit
5.Credit types in use.

Make a mental note of these characteristics and attempt to improve your credit score over time. For example, if your credit report indicates that you have “heavy credit usage,” keep track of the number of loan applications you make each year.


Building and keeping a high credit score is simple with HDFC Bank. You can get immediate and simple EMI payments choices, which provide you the flexibility you need to improve your credit over time.

2. Examine your credit report

Once a year, you are entitled to a free credit score. If you have recently taken on more debt, you should request a new credit report to discover if your credit score has changed and, if so, how much. If you discover any anomalies or inaccuracies, notify the credit bureau right away so that they can be corrected as soon as feasible.

3. Pay your credit card bills on time

When faced with a financial crisis, credit card payments are generally the last thing on people’s minds. Maintaining a strong credit score, however, necessitates paying at least the minimum due on unsecured debt. As a result, contact your credit card issuer to see if you can rearrange your payments so that the money goes toward the main balance, less any fees and interest.


4. Make on-time installment payments

This is the simplest, yet most important, method of managing your credit score. Paying your EMIs on debts like a home loan, auto loan, or personal loan on time will help you keep your credit score up. To avoid late fees and interest, keep track of your due dates and make sure your bank account is well loaded. It’s important to remember that if you miss a payment by a few days, your lender may not report it to the credit bureau right away. A payment that is 30 days late or more has a negative influence on your credit score.

If you have an HDFC Bank account, you can set up auto-debits from your savings or salary account in just a few clicks using NetBanking.

Read More: Finding The Best Mortgage Loans for Bad Credit


5. Select a payment plan that allows you to pay over time

The RBI has prolonged its loan repayment moratorium till August 2020 as a relief to consumers. This effectively suspends EMIs for consumers who desire to take advantage of them, while also reducing the risk of a negative credit impact. So, if this is an option you want, talk to your financial provider about deferring payments if you’re having trouble paying your bills.

However, if you opt to defer payments, the interest accumulated can extend your loan tenure by six months to a year or increase your EMI amount accordingly.


Your credit history shows how you’ve dealt with debt in the past. And your credit score—a three-digit figure that summarizes the information in your credit report—reflects that history.


Creditors can use the score to assess creditworthiness and to set loan terms, including mortgages. It may also be used by landlords when you apply for an apartment. Keeping a good credit score might therefore have a significant impact on your financial future.

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