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The Best Action Plan to Improve Your Credit Score for 2021-22 Financial Year

Clix April 15, 2021


With the beginning of the 2021-22 financial year, you might have set some financial goals such as to buy a home, renovate your house, or expand your business. Whatever your goals are, taking a loan can provide financial aid to achieve these goals. However, you would need a good credit score (above 725) to get the loan plan/ package that truly fits your needs.

Is your credit score not above 725? Don’t worry!

Here are a few steps you can take can follow to improve your credit score for this year




Step #1: Clear All Your Pending Payments and Setup Automatic Payments

Your credit report shows all your unpaid and pending payments along with their dates and number of days overdue. When a lender goes through your credit report, they get an idea about your financial management skills and may reject your loan application when they find them lacking. Missing and delaying payments also reduces your credit score even further. So, try to clear all your pending payments as soon as possible. For upcoming payments, set up auto debit mandates so that you do not miss them in the future.

Step #2: Check Your Credit Report Regularly

Check your credit report regularly and track any overdue or missed payments. Sometimes, your credit score might be held back due to errors or misinformation in your report. For instance, you might have closed a loan, but it might still be reflecting in your credit report because the bureau did not update it in your report. Identify any such errors and get them fixed to notice an improvement in your credit score. Verify that all the accounts listed in your report are correct and valid. If there is any error, dispute it with your credit bureau and have it corrected immediately.

Step #3: Customize Your Credit Limit

Your credit score is highly impacted by your credit utilization ratio. The more restricted you stay within your allotted credit limit, the better your credit score will be. However, using most of your credit limit has the exact opposite effect. So, one way of improving your credit score in the 2021-22 financial year is to customize your credit limit according to your income and expenses. If a credit card company is offering you an increase in your credit limit, take it immediately and see your credit score improve.

Step #4: Make Changes in Your Loan Term According to Your Repayment Capacity

A shorter loan term helps close the loan account sooner and save on the interest outgo. However, it comes with a higher EMI amount that you have to pay every month. If you are not able to afford high EMIs due to a shorter loan term, you have high chances of missing and defaulting on payments. So, a wiser step would be to request a change in your loan term and opt for a longer repayment tenure. Although it may increase your total interest outgo by the loan term ends, your EMI amount will be reduced and you will be able to pay them regularly.

Step #5: Bring Diversity in Your Credit History

If you’ve never taken a loan in the past or you have a limited credit history, your credit score will be low and you won’t be able to apply for a loan. Lenders like Clix Capital require you to have a credit score of at least 725, and you can achieve that only by bringing diversity to your credit history.

Owning more credit accounts with a mix of secured and unsecured loans, and paying them on time is a great way to diversify your credit history and improve your credit score. Managing them well simultaneously can boost your creditworthiness as a borrower and leave you in a better situation than before.

Step #6: Consolidate Your Debts

If you are finding it difficult to manage several loans at a time, a feasible option would be debt consolidation. By doing this, you bring all your debts into one and take care of one single monthly payment only. Instead of remembering several repayments with varying amounts and interest rates, consolidate all of them into a single payment and remove the burden off your shoulders.

Step #7: Do Not Reapply for a Loan Immediately

If you recently applied for a loan that was rejected by a lender, do not reapply for another loan immediately. Wait for a few months while you try to improve your credit score. Once you achieve a credit score of 725, apply for a loan again. This time, you would have a better chance of getting approval.

Check your credit score now and see where you stand.

At Clix Capital, we provide varied loan products like home loans, personal loans, and business loans to suit everyone’s financial requirements. Apply now!

For any queries, find us on Facebook, Instagram, LinkedIn, Twitter, or WhatsApp

You can also reach out to us at or call us at 1800 200 9898

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