November 23, 2025 · 8 mins read
Santosh Kumar
In India, a credit score typically runs between 300 and 900. A score above 700-750 is considered a very good to excellent score. Whereas a score between 500 and 650 is a moderate score. Anything below 500 is a low score. Hence, if someone has a low to moderate score, they can adopt some strategies to increase their score by 200 points. This score increase is a very realistic target.
The article will explain how to reach this realistic target with a step-by-step action plan.
Additionally, will also discuss ZET credit cards, which can be a tool for this credit building.
There are a couple of things that can modify the credit score in some way. These are:
History of payment: This can be the biggest factor that can influence or lower the credit score. Missed and late payments can severely harm a credit score.
Utilization of credit: If a credit limit is repeatedly used at a high percentage in every billing cycle, it can also lower the credit score. If the credit limit is used around 20-30% is the best-case scenario in this regard.
Credit history length: On the contrary, a long history of credit with an older account can help increase the credit score.
Credit Enquiry: Many new credit enquiries by new lenders or companies can also drag down the credit score a little.
Check your credit score and check for errors, such as if your identity has been mixed, if any high amount of transactions has been reported, if any duplicate accounts, or any wrong late payments have been reported. If any errors are noticed, dispute them immediately. There are many ways to check a credit score, such as GPay, PhonePe, or maybe directly from credit reporting places like CIBIL. This is very important as any kind of wrongly reported late payments can affect the score largely, so fixing those is essential.
If any account is past due, that should be paid immediately and made current. This is especially applicable for credit cards and loans. If anything is unpaid, it should be taken care of immediately, as revolving credits are typically seen to affect the credit score the most. Any late payment, when converted to paid, reduces the negative impact significantly.
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Target credit utilisation per card and across all cards under 30%, ideally under 20%. Even partial balance reduction helps; paying down large proportions of revolving debt can move scores quickly.
Each hard enquiry can dent your score briefly. Only apply for a new card or loan if it's a strategic move (e.g., to get a low-limit credit card to build history or to lower utilisation with an additional limit).
If you lack an active credit account, create a reliable payment stream: a small credit card used monthly and paid in full, or a small EMI loan that you repay on time. Consistent, problem-free history over 3–9 months compounds into score gains.
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After you make changes, monitor your CIC reports monthly. Scores don't always update instantly — banks report at different times. Continue addressing any anomalies quickly.
What is the ZET (SBM ZET) card?
ZET partnered with SBM Bank India to launch an FD-backed (fixed deposit-backed) credit card that’s designed to help people build credit — especially those with no credit history or weak history. The card typically requires a small FD (reported minima vary; marketing shows options like ₹5,000 and up), has no income proof, and promises easy approval for newcomers to credit. It’s lifetime free and often runs on RuPay, allowing UPI usage via third-party apps.
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Approval without existing credit: If you have no credit history or a thin file, getting a regular unsecured card is hard. An FD-backed card gives you a revolving account that gets reported to CICs — enabling you to demonstrate payment behaviour.
Low risk for the lender, opportunity for you: Because the FD secures the card, the bank faces less risk and is more likely to report positive usage for responsible cardholders. That reporting is the essential ingredient for raising your score.
Keep the FD small but sufficient — only lock what you’re comfortable with (ZET marketing shows low minimums). Use the credit limit conservatively.
Use it monthly for small regular payments — e.g., groceries, utility bills, phone recharge. Small, recurring spends ensure the account is active and reported.
Pay the statement in full on or before the due date — zero interest + strong positive payment history. This is the fastest clean path to score gains.
Keep utilisation low — even if your limit is small, ensure your monthly statement balance is <30% of limit (ideally <20%). If you need more headroom, request a small credit limit increase only after 6–9 months of on-time behaviour.
Don’t use the FD as your emergency fund — the FD is collateral; breaking it removes the secured nature. View it as an investment that enables credit access.
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If you have no credit history or a weak score, opening an FD-backed ZET card and following disciplined use (points 3–4 above) can meaningfully fast-track the creation of a clean repayment history. Combined with paying off any existing debts and lowering utilisation elsewhere, a 100–200 point increase in 4–9 months is attainable for many people, but results vary depending on the starting point and the severity of past negatives. (Sources and industry observers note FD-backed products aim to help users reach 750+ scores with responsible use.)
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Most people can improve their score substantially within 4–9 months if they aggressively lower utilisation, pay all bills on time, dispute errors, and build positive history using tools like an FD-backed ZET credit card. If severe delinquencies exist, it may take 12+ months.
A single inquiry may cause a small drop in your score, but on-time payments and low utilization will offset small drops over time. If you have no credit card account, ZET is a good option for a starter card to build a credit history safely.
A score of 700+ is good enough for most banks. A 750+ score gets the best interest rates on credit cards, home loans, and personal loans. FD-backed cards like ZET do not require high scores.
Yes, but it’s slower. You can build a score through timely EMIs on loans (education, personal, two-wheeler). However, a credit card — particularly a secured one like ZET — speeds things up because it reports monthly revolving credit behaviour, which scoring models value highly.
Closed accounts with a positive repayment history continue to support your score for years because they improve your credit age. However, closing your only or oldest card can hurt your utilisation ratio and lower the average age of accounts, so close accounts cautiously.
Build and Maintain a 750+ Credit Score
