6 Tips To Improve And Maintain Credit Score During Covid - 19 | Credit Help India


As the Covid-19 pandemic spreads through India, CreditHelpIndia is doing everything possible to assist our customers and readers during this unprecedented crisis. In this post, we'll discuss how to protect your business credit score during Covid-19 and how to keep track of your finances.

(1) Stay in the Loop - Check your Business Credit Score Regularly

The first step in maintaining or improving your business credit score is to be conscious of your current credit score.

Here are a few things to keep in mind if this is your first time reviewing your company credit score. Your company credit score is influenced by a number of factors. The following are some of the most important factors that influence your grade:

  • On-time payment history,
  • Number of years in business,
  • Outstanding debts/ongoing loans,
  • Credit score/credit activity of the owner,
  • The financial position of the business.

Credit scores usually range from 300 to 900. Equifax, Experian, Crisil, TransUnion CIBIL, and CRIF High Mark are some of the approved credit bureaus in India that offer credit scores to companies. A score of 750 or higher is considered satisfactory. CreditHelpIndia allows you to check your business credit score for free. Simply enter a few information about your business, and you'll receive the most recent score in a matter of minutes.

(2) Watch out for Errors in your Credit Report

The next move is to double-check your business credit score and report for any errors. If you find any error, report them to the credit bureau and have them corrected. You must also be aware of red flags in addition to administrative mistakes. Actions that lower the credit score are known as red flags. The following are some of the red flags that must be addressed:

  • High credit utilization,
  • Cheque bounces,
  • Too many ongoing credit accounts,
  • Negative cash flows,
  • Negative consumer feedback.

(3) Maintain an On-Time Payment History

Your credit score is heavily influenced by your repayment history. Maintaining an on-time payment history demonstrates that you are debt-responsible and have the capacity to repay debts on time. This raises your credit score, which helps you, qualify for loans and lowers your interest rates. Payment defaults have a negative effect on your credit score.
As a result, make every effort to pay off all of your debts on time, including loan EMIs, credit card bills, and other bills.

(4)Opt for Loan Restructuring, if Needed – But, Proceed with Caution

The loan moratorium period ended on September 30th, and the Indian government has now permitted qualified businesses to restructure their loans. You may lower your monthly EMI or increase the term of your loan through restructuring. Restructuring, on the other hand, has drawbacks, as it can raise your total debt burden. It's important to remember that reform is just a temporary solution that should be used with caution.

Examine the benefits and drawbacks of restructuring to see if it's the best choice for you. You have the option of restructuring your loan if you are unable to pay your EMIs on time. Use the money to buy inventory or pay employees. Repay your loans on time until your cash flow is back on track to improve your credit score.

(5)Lower your Credit Utilisation

A credit utilisation ratio of 30% or less is recommended for a good credit score. When you go over this cap, your credit score begins to suffer. To avoid losing your credit score, keep track of your credit usage and remain within the permitted credit limit.

(6) Do not take on New Loans, Unless Absolutely Necessary

Finally, if you want to secure your business credit score, avoid taking out new loans during this time of crisis. Term loans, overdrafts, credit lines, and credit card balances all show up on your credit report as liabilities. Taking out new loans during these difficult times will damage your credit score.


Maintaining a strong credit score is vital to your company's financial health. Use the advice in this article to protect and improve your company's credit score during and after the pandemic.

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