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A higher income does not directly boost your credit score, experts agree, since credit scores are calculated based on how you manage credit, not how much you earn.
The impact of frequent credit card usage on a credit score largely depends on how the card is managed.
A salary hike is often seen as a financial breakthrough — increasing spending power, improving lifestyle, and offering more flexibility in money management. But does it translate to a better credit score? Leading industry experts say not directly, but it can have powerful ripple effects on one’s credit health.
Credit Score: Built on Habits, Not Income
A higher income does not directly boost your credit score, experts agree, since credit scores are calculated based on how you manage credit, not how much you earn.
“Credit bureaus focus on past credit behaviour, not current income,” said Sachin Seth, Chairman of CRIF High Mark and Regional MD, CRIF India & South Asia. He noted that income isn’t a formal input in scoring models. Instead, timely repayments, low credit utilization, and a stable credit mix are the key drivers.
The Indirect Power Of A Pay Hike
However, a bigger paycheck improves financial flexibility, which helps in building better credit behaviour over time.
Manish Shara, Co-founder and CEO of ZET, pointed out that a salary hike acts as “financial fuel,” helping individuals repay debt faster, reduce reliance on credit, and meet EMI deadlines more easily. These actions improve long-term creditworthiness.
Similarly, Kundan Shahi, Founder of Zavo, emphasized that income doesn’t guarantee a high score, but it enables healthier credit habits. “Someone with a modest income can have excellent credit, while a high earner might struggle if they’re not disciplined,” he noted.
Real-World Impact: Up To 70-Point Boost
From a data standpoint, Siddarth Jain, CFO of MinEMI, shared that many users see a 30–70 point increase in their credit scores within 6–8 months of actively optimizing their loans post salary hike.
Higher income, he said, lowers credit utilization, speeds up debt repayment, and improves the balance between secured and unsecured loans — all of which contribute to better credit profiles.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
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