Build a Positive Credit Profile with Good Credit Habits

Maintaining good financial habits is of prime importance to establish a satisfactory credit score/profile. Individuals, by nature, are creatures of habit. Habits are responsible for shaping individuals into better human beings. Initially, parents play a key role in molding a child’s habits, in terms of interpersonal relationships, social skills, study habits and financial acumen. All these aspects of our lives come into play in adulthood when we display our habits to the world at large. Developing sound financial habits is important and helps  in your financial future. When you get your first credit card or apply for a loan, your credit history begins. This is instrumental in the building of your credit profile and maintaining a good minimum CIBIL score. 

What is a CIBIL score?

The moment you start your credit pathway, you create a footprint of credit that determines your ability to handle future finances. Your credit profile determines your CIBIL score, a numeric summary of creditworthiness, expressed by three digits. This can range anywhere from 300 to 900. To summarize, this numerical value is a reflection of your credit habits/behaviour over a period. CIBIL is an agency that keeps your records and tracks them regularly for updated scores when you check CIBIL score for free (for a single time) on the CIBIL website. You can check your score for free once, but after that, you will need to subscribe. 

Good Credit Habits

What follows from the above, is that good credit habits lead to a good credit profile, and thus, a good score, and vice versa. Lenders will check your CIBIL score to get an idea of your financial worthiness, and based on that, determine whether you can be approved for a product such as a loan or a credit card. Lenders mandatorily request a good minimum CIBIL score . This ranges between 700 – 750. The higher your score, the better the line of credit approved with low interest rates and other perks. Here are pointers to build good credit habits and good scores:


  • Save and Make a Budget – You must save for the future, budgeting expenses accordingly. In case you have loan obligations, you should make a monthly budget and adhere to it strictly. A good rule of thumb is to save three months of your monthly income/salary for any emergencies or shortfalls.
  • Make Financial Goals – You have to plan your finances so you can meet goals, cautiously balancing your credit. Think of any EMI payments and loans you may have, and ideally, this should be under 30% of monthly income. Credit may always be available, but only apply for it when required. 
  • Use Credit Judicially – You may have credit cards, but use them cautiously and try not to overspend. Pay your dues on time and in full, so debt doesn’t get accumulated. 

Final Truths

To maintain healthy financial health isn’t a challenge if you plan and consider your income carefully. You can check CIBIL score for free just once, but it’s a good idea to do so regularly as it may change depending on your financial status.  Learn more at Finserv MARKETS where you get to know about CIBIL credit reports and scores. 

Michael Caine

Michael Caine is the Owner of Amir Articles and also the founder of ANO Digital (Most Powerful Online Content Creator Company), from the USA, studied MBA in 2012, love to play games and write content in different categories.

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