How Can You Use A Credit Card To Improve Your Credit Score?

Credit cards can be purchased online easily, and it is available for everyone nowadays. If you have the right documents, you can apply for a credit card online. Using a credit card and making the bill payment for things like utility bills can be daunting, but if you use it wisely, you can take advantage of it in many things, like getting off on shopping sites, flights, and hotel bookings. You can try to increase your credit score by using a credit card. 

Banks and other NBFCs check the credit score of the borrowers to lend loans for tuition fee and medical purposes. If you have a bad credit score, then the application will be rejected immediately. You can use the UPI credit card app to make credit card bill payments regularly and increase your cibil score.

Credit history

If you have taken small loans like for paying water bill payment before or you have a credit card, then it will become easier for lenders to provide you with a loan. They will evaluate your credit history and your repayment behavior. 

If you pay your EMIs on time, then you have become eligible to get another loan, and get your credit score improved. To pay EMI on time, you can get UPI app payment to give you reminders on credit card bill payments. However, taking a loan to increase your credit score is not advisable. 

To improve your credit history without any incurring costs, you can get a credit card. For loans, you have to pay interest costs, but for credit cards, if you pay outstanding dues on time, you don’t have to pay any interest costs. A credit card also offers reward points that you can use for shopping and other benefits like flight or hotel booking. 

Paying bills on due

Credit card issuers usually send the report transactions to bureaus to update credit score. If you fail to pay the due on time, you will get a lower credit score. If you pay bills on time and are consistent about it, then your credit score will be increased. You can transfer money online to pay the bills on time. Always use a credit card for any expenses that can be repaid back on the due date. You can even convert the expenses to EMI and pay it in installments. 

Avoid multiple credit cards

Do not apply for multiple credit cards within a short period. Lenders will think that you are credit-hungry, and they will reject your applications since they involve more risk. So, use a single credit card, and also, if you are using multiple credit cards, use the online UPI app to send you reminders on bill payments. Ensure that you pay bills on time and improve your credit score.


Credit card utilization can benefit you in many ways even when you clear water bill pay with your card, such as by improving your credit score, giving you reward points for shopping, cashback, booking tickets, etc. Please take advantage of it and use it wisely. However, if you use it without understanding the terms and conditions, it can lead to a lower credit score. Always pay bills on time.