Surprising Things That Lower Your Credit Score in
India
Think
you’re financially responsible? You might still be hurting your score without
realizing it.
1. Paying Minimum Due Only
Even if
you pay the “minimum due” on your credit card, it signals poor repayment
behavior to credit bureaus.
Always
try to clear the total outstanding, not just the minimum.
2. Closing Old Credit Cards
Your
credit history’s age matters. Closing your oldest card lowers your average
account age, negatively affecting your score.
Keep your
oldest card active with small monthly spends and full repayments.
3. High Credit Utilization
Using
more than 30-40% of your card limit regularly shows dependency on credit.
If your
limit is ₹1 lakh, try not to go beyond ₹30,000 even if you repay on time.
4. Too Many Loan Applications
Every
loan or credit card application leads to a hard inquiry, which
temporarily lowers your score.
Avoid
applying for multiple loans or cards within a short period.
5. Ignoring Small EMIs or BNPL Apps
Missed
payments on apps like Flipkart Pay Later or Amazon Pay Later are reported
to CIBIL.
They
affect your score just like any big loan.
Conclusion
A strong
credit score opens financial doors. Know these hidden traps and stay score-safe.
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