Can you improve your credit score while unemployed? These are 7 steps to follow

livemint.com:

Just as being wealthy is no guarantee for an excellent credit score, being unemployed is also no certainty for the poor credit score. 

There is not denying the fact that it is hard to improve your credit score (or CIBIL score) when someone is unemployed, but it's not impossible.

For example,  31-year-old Ashish Mishra, a trained architect, lost his job during the pandemic for a few months. He was worried about his poor credit score. But then he learnt that his worry was unfounded.  All he needed to do was to follow a few steps to maintain a sound credit score. We summarise them here.

Review credit report: Obtain a free copy of your credit report from each of the major credit bureaus (Experian, Equifax, and TransUnion) and review it carefully for any errors or discrepancies.

Dispute errors: If you find any errors on your credit report, such as incorrect late payments or accounts that don't belong to you, dispute them with the credit bureaus to have them corrected. This can potentially improve your credit score.

Timely payments: If you have existing debts, such as credit card bills or loans, make sure to continue making timely payments. Payment history is a significant factor in determining your credit score, so keeping up with payments, even if you're unemployed, is crucial.

Reduce credit card balances: Aim to pay down credit card balances as much as possible. High credit card balances relative to your credit limits can negatively impact your credit score. Keeping balances low or paying them off entirely can help improve your score.

Avoid opening new accounts: While it may be tempting to open new credit accounts, especially if you're facing financial difficulties, refrain from doing so if possible. Opening new accounts