Full Information on Cards That Can Help Improve Your Credit Score


A good CIBIL score varies between 300 and 900 and changes depending on various factors that impose an impact on this score. The nearer your credit score is to 900, the better it is considered for you.

As opposed to common notions though, you can use credit cards to improve credit score and take it closer to the benchmark over some time. 

Credit cards empower you to make purchases as and when you require, and they are also a vital financial tool which can come to alter your state of credit report and positively impact your CIBIL score. Today, banks and financial institutions rely to a large extent on your credit score to decide if you should be given a line of credit.

Under these circumstances, it is vital to maintain a positive credit score so that you can get access to any form of credit, should you require it. 

A credit card can prove to be a useful tool when it comes to improving your credit score. But, it is important that you have a strategy to pay your bills on time and get out of debt.  Let us find out a little about how it can be done. 

How To Use Credit Cards To Improve Credit Score?

Use Credit Cards To Make Payments Of Utility Bills Regularly

Did you know that you have the option to make payments of various bills, such as the phone bill, internet bill, electricity bill, water bills, and more, using your credit card?

By following this diligently, you will be able to build a positive payment history with your lenders, which will reflect with clarity in your credit report. 

If at all, your credit score was not optimum before this, you can expect it to improve with the use of a credit card for this purpose.

Another impressive fact about using this particular feature of credit cards is that utility bills for items such as the ones mentioned above, tend to be on the lower side, in comparison to purchases for larger material items. Hence, it is possible to pay off the debt arising from such payment quickly and in a shorter period. 

Thus, you can expect the positive impact of this practice to reflect in your credit score with relative ease. You can use credit cards which are specifically meant to benefit you for this purpose. 

Make It A Habit To Repay Your Debt On Time

It can become too convenient for you to carry debt on your head, even if it is for a small amount.

However, you should always try to keep your account as clear as possible, even if you have to make small or part payments at a time. At least strive to make the minimum payment on your credit card at a time. 

This will help to even out your credit score and keep it in check. However, if you want to increase your credit score, a good idea will be to pay off as much debt as it is possible within the due date. With a small credit management habit, it will become easy for you to achieve this target. 

Start Paying More Than Once In A Billing Cycle

Making payment for your credit card once in a month is mandatory, but what if you could pay for it more than once? Having a big balance outstanding in your name could imply that you are overusing your credit limit.

If your financial standing allows, you can make payment of your credit card bills twice monthly. 

This helps to reduce your debt quicker and also limits your credit utilization ratio. In return, this will positively impact your credit score and help you reach closer to the target of 900. 

Best Credit Cards To Improve Credit Score

Here are some of the credit cards, which are best suited for improving your credit score:

SBI

  • SBI Card Elite: Follow an elite lifestyle with this credit card which delivers exclusive shopping benefits to you. While it is beneficial in terms of the rewards which you can earn, it is also suitable for improving your credit score, if you can manage to pay back for the amount charged on your card.
  • SBI Card Prime: This is the most valuable credit card when it comes to paying your utility bills with a credit card. As a welcome gift, you receive several vouchers from the card company and additional benefits which gets your various perks and discounts on miscellaneous expenses. On every INR 100 worth of expenditure on your utilities, you receive reward points, which can be redeemed for attractive perks.
  • Simply Click SBI Card: Opt for this rewarding credit card which not only brings you the benefit of cashback and discounts but also rewards you for every purchase that you make. In return, you can get the benefit of paying back the amount which you owe on the card and improve your credit score.

YES Bank

YES First Preferred Credit Card: This premium card is another option which will suit you well. Along with many complementary benefits, this card offers you the opportunity to increase the pace of card payment.

Vijaya Bank

Vijaya Rupay Credit Card: You can consider this option if you would like to have a credit card which charges 0 annual fees. Along with this attractive benefit, the card is also good for you if you want welcome gifts, cash backs and discounts on various purchases.

HSBC Bank

HSBC Cashback Credit Card: With a 0 joining fee, this credit card is a great pick for you if you are into shopping extensively using your credit card. By spending through this card, you will be able to make payments in return and improve your credit score as a result.

In Conclusion

The above-listed credit cards to improve credit score are just a few of the options which you can consider to achieve your target.

And these days it has become easy to pay credit card bills through apps like CRED. You can choose a credit card for your specific purpose and follow the tips listed above to enhance and maintain your credit score.

It will help your credit report to a large extent as well. 

Jeff Campbell

Jeff Campbell is a husband, father, martial artist, budget-master, Disney-addict, musician, and recovering foodie having spent over 2 decades as a leader for Whole Foods Market. Click to learn more about me

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