Credit CardFinancial Plan

2017-18 Financial Year Resolutions That Can Improve Your Credit Score

So, FY18 started this April and there are many changes to expect in the near-future: Goods and Services Tax will be rolled out on 1st July and the government is also promoting digital economy through a variety of initiatives. Clearly, there’s a lot going on! So, could it be a good time to establish some excellent resolutions to live by this fiscal? Yes, of course!

With government tightening the laws for loan sanctioning and income tax returns, etc. it’s become really important for the citizens to become more responsible towards their creditworthiness.

The following are some of the best FY18 resolutions you should keep:

Becoming Organized

How many times you have heard that you should pay your credit card bills and loan EMIs on time? But how many times have you actually tried to become more punctual?

It can be difficult to keep up with your bills and EMIs, but that doesn’t change the fact that even one late payment can come in the way when you want to improve CIBIL score. So, this financial year, take a vow that you will not let even one due date pass by. If you need help you can always try the following:

  • Apps: Smart phones can be really helpful if you use them well. There are all kinds of apps available on the app store that can help you stay organized. You can set one such app in a way that it will notify you when the due date for a bill or EMI is coming closer. This way you will stay on track.
  • Auto-debit feature: One of the best ways to ensure your loan repayments are paid on time is to enable auto-debit feature. In this, your bank automatically deduces the credit card bill amount or loan EMI from your account on a monthly basis so that you don’t have to keep a track of them yourself.

Becoming Responsible

How many times do you check your CIBIL report in a year? Ideally, you should check it at least 3-4 times per year, if not more. That’s the key to building a healthy score. You can even get a credit score from any credit agency’s website. Thus, there is no reason to get started ASAP.

By checking your CIBIL report from time to time not only you can enhance your score, you can also prevent a potential identity theft by identifying anomalies in it.

To make sure you monitor your CIBIL report well, you can mark a few dates in your mobile calendar or any other app that can notify you in advance when it’s time to check your report.

Getting a Credit Card

By using a credit card in a responsible manner, you can improve CIBIL score to a great extent by the next fiscal alone! So, if you don’t have one already, get one now. Once you have it, take note of the following and let it build a score for you:

  • Pay your credit card bills on time, every time.
  • Never settle for “minimum payments”. These essentially mean to carry debt ahead which is never good for credit score.
  • Use your credit card for important/necessary purchases only.

Sticking to a Budget

What happens when your expenses surpass your income? You either take a personal loan or use your credit card. However, both of these are credits, and excessive utilization can lead to a low CIBIL score. Thus, from this fiscal onwards, start spending within a budget.

Take some time off this weekend, and make a list of your expenses and incomes, and then create a budget accordingly. Be sure to keep a margin for unexpected expenses such as medical emergencies, miscellaneous expenses, etc. in that.

By sticking to your budget, you will minimize the risk of loan defaulting and also maintain a low credit utilization ratio, both of which will ensure a healthy CIBIL score.

So, these were some of the top resolutions that you should keep this financial year. You may find face difficulty in keeping them in the first few months, but if you are able to instil these good credit-habits in yourself you will certainly observe a positive result by the next fiscal. As for now, you can start by checking your free CIBIL score today. Good luck!

Vikas Agarwal
the authorVikas Agarwal
Vikas Agarwal is an IIT-Varanasi graduate in Chemical Engineering. He is the Founder and CEO of - an investment advisory website. He is a Business Development Professional but a Value Investor at heart. He writes articles on Finaacle, which focus on simplifying the art of investing and the causes of human misjudgment when it comes to investing. He also shares his experiences as an investor and lessons from some of the greatest investors of all time.

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