Learn how the co-branded Bajaj Finserv RBL Bank Credit Card can help enhance and maintain your credit score while offering exciting rewards.
While credit cards are widely used and convenient financial tools, they can lead to financial difficulties if misused. This makes some individuals view them with suspicion, seeing them as a necessary evil. However, credit cards are not just about transactions—they can also be powerful allies in improving your credit score. With a card like the Bajaj Finserv RBL Bank Credit Card, you can not only elevate your credit score but also enjoy rewards with every swipe.
Credit scores are crucial indicators of your reliability as a borrower. In India, these scores are represented by a three-digit number ranging from 300 to 900, issued by credit bureaus such as TransUnion CIBIL and Experian. Lenders use these scores to assess your risk profile when you apply for credit. A score of 750 or higher is considered excellent and can unlock benefits like lower interest rates, longer repayment terms, and better overall lending conditions. On the other hand, a poor score near 300 may significantly limit your access to credit products.
Many people struggle to maintain or improve their credit scores, often due to a lack of knowledge or poor financial habits. However, the right credit card can make a world of difference.
1. Make Timely Payments
Your repayment history is the single most important factor affecting your credit score, contributing 35% to the final number. Missed or late payments can harm your score, while timely repayments will improve it. The Bajaj Finserv RBL Bank Credit Card offers an autopay feature to ensure you never miss a payment. You can also convert large purchases of Rs. 2,500 or more into easy monthly installments, helping you maintain a positive repayment history.
2. Optimize Credit Utilization
Credit utilization—the ratio of your credit card balance to your credit limit—accounts for 30% of your credit score. Financial experts recommend keeping your credit utilization below 30%, as it signals to lenders that you’re managing your credit responsibly. By using your Bajaj Finserv RBL Bank Credit Card regularly, paying off balances on time, and avoiding maxing out your credit limit, you can maintain a healthy credit utilization ratio.
3. Diversify Your Credit Portfolio
Lenders look favorably upon a diverse credit mix, which includes different types of loans and credit accounts. Adding the Bajaj Finserv RBL Bank Credit Card to your financial portfolio can enhance your credit mix. This co-branded card also offers a range of cost-saving features and benefits, giving you more flexibility in managing credit.
4. Build a Long Credit History
The length of your credit history makes up 15% of your credit score. Lenders prefer borrowers with a longer, established track record of responsible credit usage. With the Bajaj Finserv RBL Bank Credit Card, you can build a strong credit history over time. The card even offers annual fee waivers when you meet the required spending threshold, encouraging long-term card use.
5. Manage Credit Inquiries
Every time you apply for credit, a hard inquiry is made on your credit report, which can temporarily lower your credit score. Multiple hard inquiries in a short period can have a more severe impact. By checking if you’re pre-approved for the Bajaj Finserv RBL Bank Credit Card, you can avoid unnecessary hard inquiries and minimize the effect on your score.
6. Maximize Rewards
The Bajaj Finserv RBL Bank Credit Card rewards responsible usage with points on nearly every transaction, with accelerated earnings on online and international purchases. You can also benefit from discounts and cashback offers. By using the card for everyday expenses and paying the balance in full, you not only build credit but also enjoy valuable rewards.
7. Utilize Interest-Free Periods
The Bajaj Finserv RBL Bank Credit Card offers a 50-day interest-free period on ATM cash withdrawals, which can be extremely helpful in emergencies. If you repay the amount within the interest-free period, you can avoid debt that could negatively affect your credit score.
8. Regular Credit Monitoring
It’s essential to keep an eye on your credit report to ensure there are no errors or signs of fraudulent activity. By regularly reviewing your monthly credit card statements, you can stay informed and safeguard your credit health.
Additional Benefits Beyond Credit Building
In addition to these eight strategies for improving your credit score, the Bajaj Finserv RBL Bank Credit Card offers a range of perks. These include concierge services, complimentary airport lounge access for a luxurious travel experience, and fuel surcharge waivers of up to Rs. 1,200 per year. Film enthusiasts can also enjoy monthly discounts and ‘Buy 1 Get 1’ offers on BookMyShow. These features make the Bajaj Finserv RBL Bank Credit Card more than just a tool for credit building—it’s a way to enhance your overall lifestyle.
Improving your credit score doesn’t have to be a daunting task. With the Bajaj Finserv RBL Bank Credit Card, you can steadily build your credit while enjoying premium benefits. Why wait? Download the Bajaj Finserv App or apply online through the official Bajaj Finserv website today.
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