Summary of this article
Timely repayment of EMIs and credit card dues remained the single most critical factor influencing credit scores.
Disciplined credit card usage and low credit utilisation helped signal responsible borrowing behaviour.
Applying selectively for loans and cards reduced hard enquiries and protected credit profiles.
Regular monitoring of credit reports helped borrowers spot errors early and avoid unnecessary score damage.
Credit is easier to access today, but it also demands more careful handling. Credit cards, personal loans, and short-term credit products have become part of everyday spending. At the same time, credit reports are now easily available through banks, payment apps, and credit bureaus - making the impact of daily financial decisions on credit scores far more visible than before. In 2025, this heightened visibility pushed many borrowers to pay closer attention to how everyday choices affected their credit health.
Credit scores now play a clear role in loan approvals, interest rates, and borrowing limits. A few simple habits helped people maintain and improve their credit scores over the year.
Timely Repayment Remained The Foundation
Repayment history continued to be one of the most important factors in credit scoring. “Missed EMIs or delayed credit card payments were reflected quickly in credit reports and could hurt credit scores even in cases of minor delays. Borrowers who stayed on top of due dates, used autopay for bills and EMIs, and avoided carrying forward unpaid balances, were better positioned to protect their credit health,” says Manish Shara, Co-founder and CEO, ZET, a fintech platform focused on building a credit-ready India.
Disciplined Use of Credit Cards
Credit cards formed a key part of most credit profiles. Beyond repayment, how much of the available limit was used also mattered. Lower and stable credit utilisation generally indicated manageable borrowing, while sustained high utilisation could weigh on scores despite timely payments. Keeping spends within reasonable limits signalled responsibility and helped preserve long-term credit health.
Every Application Carries Weight
Each loan or credit card application typically resulted in a hard enquiry. Multiple hard enquiries within a short period of time could negatively affect credit scores and make borrowers appear credit-hungry, especially if they had a limited credit history. Applying selectively and spacing out applications helped reduce unnecessary pressure on credit profiles.
Secured Credit Offered a Measured Entry Point
Secured credit products played an important role in credit score-building, especially for first-time and thin-file borrowers. FD-backed credit cards provided access to credit while keeping risk contained.
“Our internal data shows that new-to-credit users who began with a secured credit card and followed basic repayment discipline were able to establish strong credit profiles in a relatively short period. 100 per cent of these users built a 700+ credit score within just a few months of responsible usage,” says Shara.
Older Accounts Signal Stability
Credit bureaus track how long borrowers have been using credit, and older accounts play a critical role in that calculation. A longer credit history signals reliability. It shows lenders that borrowers have been trusted with credit over time and have managed it responsibly.
Review Credit Reports Regularly
Regularly reviewing credit reports helped spot errors, incorrect information, or fake accounts early. Checking a report did not directly improve credit scores, but the timely correction of inaccuracies prevented avoidable damage and ensured that reports accurately reflected credit behaviour
Credit Health Is Built Through Consistency
Strong credit profiles were built over time, not through one-time actions. They were shaped by consistent and disciplined behaviour rather than quick fixes. “Borrowers who managed repayments on time, kept credit usage under control, applied selectively, and maintained their accounts with care were better placed to stay on the right track. These habits helped create a stable and reliable credit foundation,” informs Shara.
As more borrowers enter the formal credit system, and many more are expected to do so in 2026, building these habits early can help ensure credit works in their favour over the years ahead.
