New Delhi, Sept. 1 -- A credit score stuck at 500 immensely limits access to credit and raises borrowing costs. Many individual borrowers continue to remain unaware of the common mistakes and errors holding their scores down.

Understanding these mistakes is essential, especially as lenders require higher credit scores, often over 725, for disbursements of unsecured loans or credit cards. A credit score, hence, is a three-digit number that gives a borrower their borrowing integrity. The higher the score, the better it is. To boost scores, therefore, borrowers must avoid making the same mistakes.

Purvang Mashru, Senior Quantitative Research Analyst at 1 Finance, says, "Being stuck at 500 isn't fate, it's usually the same missteps on repea...