Summary of this article
Pay all EMIs and credit card dues on time to protect your score and avoid penalties.
Keep credit utilisation low and avoid relying only on minimum payments.
Apply for new loans or cards only when necessary, and space out applications.
Maintain older credit accounts and think carefully before co-signing any loan.
As we step into 2026, maintaining a good credit score remains central to financial health. With more borrowers entering the formal credit system each year, everyday choices around credit cards and borrowing are playing a bigger role in shaping financial outcomes.
These decisions may seem routine, but their impact can last far longer than expected. A few mindful habits can help ensure that credit works in your favour rather than becoming a constraint over time.
Prioritise Timely Repayments
Paying EMIs and credit card dues on time remains one of the most important factors in maintaining a strong credit score. Even small delays are reflected in credit reports, attract late payment fees, and can signal higher risk to lenders.
“Consistently meeting due dates not only protects your credit score but also helps avoid unnecessary charges and demonstrates financial discipline. This is viewed positively when applying for a loan or credit card. Setting reminders or using automated payments can ensure that deadlines are not missed,” says Manish Shara, Co-founder and CEO, ZET, a fintech platform focused on building a credit-ready India.
Avoid Paying Only the Minimum
Relying on minimum payments over a long period can accumulate interest and indicate higher credit risk. Paying more than the minimum, even occasionally, keeps balances manageable and supports long-term credit health. This approach also helps borrowers reduce debt faster while signalling responsible credit behaviour to lenders.
Keep Credit Utilisation Low
Credit utilisation refers to how much of your total credit limit you are using. Keeping this below 30 per cent is generally seen as a sign of responsible usage. Even when payments are made on time, using too much of your available limit regularly can signal financial strain and may affect your score.
Apply for New Loans and Credit Cards Thoughtfully
Every application for a loan or credit card is recorded as a hard enquiry with the bank or credit bureau. “Several applications made within a short period of time can make you appear credit-hungry, especially if your credit history is limited. Applying only when needed and spacing out applications helps maintain a healthier credit profile,” informs Shara.
Keep Your Oldest Card Active
Older credit cards play an important role because they add to your credit history. They show how long you have been using credit and how responsibly you have managed it over time. Keeping long-standing cards active, even with small and occasional transactions, helps maintain a longer and more stable credit profile.
Exercise Care Before Co-signing
Becoming a guarantor on a loan for someone else introduces risk to your own profile. Any delay or default by the primary borrower can impact your credit score as well. Consider the potential consequences carefully before taking on such commitments.
Building Credit That Lasts
Strong credit profiles are built through consistent behaviour, not through one-time actions. As 2026 unfolds, borrowers who follow a few basic practices consistently are more likely to see lasting results. Paying on time, keeping usage in check, being selective about new applications, and treating long-standing accounts with care all add up over time.
“When borrowers understand how their actions show up on a credit report and manage credit with discipline, credit begins to work as a support system rather than a source of stress. Carrying these habits forward into 2026 can help ensure that credit remains an enabler of financial goals, not an obstacle,” says Shara.
