Building and improving your credit profile

A credit profile improves as your report fills with a record of on-time payments and sensible use of credit. No single action raises a score by a fixed number of points, and nobody can promise a particular score.

Last reviewed on 19 October 2026.

What generally helps

  • Pay every EMI and card bill by the due date; set up auto-debit or reminders.
  • Pay your card's full statement amount when you can, and keep balances low compared with your limits.
  • Apply for new credit only when you need it, rather than making many applications in a short time.
  • Keep older accounts in good standing; closing a card reduces the total limit available to you.
  • Check your reports regularly and dispute any errors.
  • If you have no history, some people start with a small card or loan they can repay easily, such as a card secured against a fixed deposit.

What to be careful about

  • Paying only the minimum amount due month after month: the balance shrinks slowly and interest keeps adding up.
  • Agreeing to settle a debt for less than you owe without understanding that the account may then be reported as "settled".
  • Paying anyone who promises to "repair" your score or remove correct entries.
  • Standing guarantor or co-applicant for a loan you cannot afford to repay yourself: missed payments on it can appear in your report too.

What the RBI rules say

  • A credit card account is reported to credit information companies as past due only when the amount due remains unpaid for more than three days after the payment due date. [1]
  • From 1 January 2025 lenders update credit information at least every fortnight, so changes appear in your report after the next update. [2]

Rules referred to

  1. RBI Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022 (updated to 7 March 2024) (opens in a new tab) (RBI/2022-23/92, 21 April 2022)
    Minimum amount due without negative amortisation, interest only on the outstanding amount, reporting to credit information companies, closure of cards, billing cycle.
  2. RBI circular: Frequency of reporting of credit information by Credit Institutions to Credit Information Companies (opens in a new tab) (RBI/2024-25/60, 8 August 2024)
    From 1 January 2025 lenders report credit information at least fortnightly (as on the 15th and the last day of the month).

Finobazaar read these rules on rbi.org.in on 19 October 2026. Rules change: check the current text on the RBI website.

Important limitations

  • How much each habit matters depends on each credit information company's model and on your whole report.
  • This guide is general information. It does not promise any change in your credit score, an approval or a particular result.

Official resources

Addresses checked on 19 October 2026.

Frequently asked questions

How long does it take to improve a credit score?

There is no fixed time. A score reflects the data in your report, which lenders update at least every fortnight; a record of on-time payments builds up over months and years.

Will closing my credit cards improve my score?

Not necessarily. Closing a card lowers your total available limit, which can raise your utilisation, and closing an old card can shorten your visible history. Consider what each card costs you before deciding.

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