• The first step to building a good credit score is understanding what a good credit score is in India. 
• Making timely payments, managing your credit utilisation ratio and diversifying your credit mix are all ways of maintaining a healthy credit score. 
• Additionally, you can also use the GIGA Business Credit Card to your advantage to build and maintain a good credit score.

As a freelancer, your financial independence is both your strength and your challenge. One key aspect of maintaining this independence is managing your credit effectively. A good credit score is essential for accessing financial tools that can help you grow your business and manage your finances more effectively. 

Before diving into strategies, it's crucial to understand what a good credit score in India is. Typically, a good credit score ranges between 700 and 750, while a score above 750 is considered excellent. This score reflects your creditworthiness and influences your ability to secure Loans, Credit Cards, and other financial products at favourable terms. Knowing where you stand is the first step in improving your credit management.

One of the most effective ways to maintain a healthy credit score is by making timely payments on all your debts, including Loans, Credit Card bills, and utility payments. Late payments can significantly impact your credit rating. Setting up reminders or automatic payments ensures that you never miss a due date, which is crucial for those seeking how to improve their credit score.

Your credit utilisation ratio is the percentage of your available credit that you're currently using. To maintain a good credit score, it's advisable to keep this ratio below 30%. For instance, if your total credit limit across all cards is ₹ 1 lakh, try to keep your outstanding balance below ₹ 30,000. This ratio directly impacts your credit rating; maintaining it at an optimal level is a key strategy for those wondering how to increase their credit score.

Lenders prefer to see that you can manage various types of credit responsibly. A mix of credit, such as a combination of a Credit Card, Personal Loan, or Car Loan, can positively affect your credit rating. However, it's important not to take on debt just for the sake of diversity. Ensure that any credit you acquire fits within your financial strategy and contributes to your business success.

Staying informed about your credit standing is vital. Regularly checking your credit report can help you spot and rectify any discrepancies that might negatively affect your score. Moreover, monitoring your report allows you to see the impact of your financial habits on your credit rating over time, which is crucial for maintaining a healthy credit score.

For freelancers, the GIGA Business Credit Card by HDFC Bank is an excellent tool to help manage your finances and maintain a good credit score. This card offers financial flexibility tailored to the needs of gigsters, with benefits like cashback on business expenses and easy tracking of spending. By using the card responsibly - keeping utilisation low and paying off balances in full each month - you can boost your credit rating while enjoying the card's perks.

The benefits of this card include:

• Flexible payment options: Enjoy up to 55 days of interest-free credit, allowing you to manage cash flow more effectively.
• Expense management tools: Easily track and manage your business expenses with detailed statements and expense tracking features.
• Fuel surcharge waiver: Save on fuel with a waiver on the surcharge for fuel transactions.
• Complimentary insurance: Get peace of mind with complimentary insurance coverage included with your card.

When you apply for new credit, it results in a hard inquiry on your credit report, which may cause a temporary dip in your credit score. Multiple inquiries in a short period can signal to lenders that you're in financial distress, which may harm your credit rating. To maintain a healthy credit score, space out your credit applications and only apply when necessary.

If you're dealing with several high-interest debts, combining them into a single loan with a lower interest rate can make repayments more manageable. This strategy can help improve your credit rating by simplifying your finances and ensuring that you're able to make timely payments.

Maintaining a healthy credit score as a freelancer is not just about making timely payments - it's about managing your finances with a strategic approach. By following these tips, you can ensure that your credit rating remains strong, opening doors to financial opportunities that support your freelance career. 

The GIGA Business Credit Card by HDFC Bank is an invaluable resource in this journey, offering the flexibility and support you need to manage your credit and achieve your business goals.