How To Fix A Bad Credit Score Quickly

In today’s fast-paced financial world, your credit score is more than just a number—it’s a key to accessing business loans, personal financing, better interest rates, and long-term financial security. If your score isn’t where you want it to be, don’t panic. Here’s how you can fix a bad credit score quickly and responsibly.

1. Check Your Credit Report for Errors

Before taking any action, start by reviewing your credit report from major credit bureaus such as CIBIL, Equifax, or Experian.

1. Look for incorrect entries or outdated information

2. Dispute any errors immediately through the official channels

3. You are entitled to one free credit report per year from each bureau

Pro Tip: Even a small error—like a wrongly reported missed payment—can hurt your score. Correcting such errors may improve your credit score within 30 days.

2. Pay Off Overdue Payments

Your payment history is the most significant factor in your credit score, accounting for approximately 35%.

1. Clear any outstanding credit card bills or loan EMIs

2. Set up reminders or automate future payments

3. Always pay the full amount rather than just the minimum due

Quick Win: Clearing just one default account can improve your score by 30–50 points in a short time.

3. Reduce Credit Card Utilization

Using too much of your available credit can indicate financial stress to lenders.

1. Keep your credit utilization below 30% of the total limit

2. If possible, request a higher credit limit based on income

3. Avoid maxing out your credit cards regularly

Example: If your card limit is ₹1,00,000, try to use no more than ₹30,000 to maintain a healthy credit profile.

4. Avoid Taking Multiple Loans at Once

Every loan or credit card application triggers a hard inquiry, which can temporarily reduce your credit score.

1. Avoid submitting multiple loan applications in a short span

2. Choose pre-approved loan options from platforms like Transparent Investment that do not affect your credit score significantly

3. Opt for lenders that conduct soft credit checks instead of hard pulls

5. Become an Authorized User

If a family member or close friend has a well-managed credit card, ask to be added as an authorized user.

1. You benefit from their positive payment history and credit age

2. This can improve your credit profile even if you don’t use the card

Caution: Only go this route if the primary cardholder manages their credit responsibly. Poor usage could negatively impact your score.

6. Use a Credit Builder Loan

A credit builder loan is a great tool for those looking to improve or establish their credit score.

1. Consider small loans that report timely repayments to credit bureaus

2. Transparent Investment offers custom loan plans based on your credit profile

3. Consistent, on-time repayments help build credit history over time