A credit score is a vital financial metric that lenders use to evaluate the creditworthiness of a borrower. In India, CIBIL scores range typically from 300 to 900, with a score of 750 or above considered excellent, making it easier to secure loans with favourable terms. For example, someone with a high score might receive a lower interest rate on a home loan compared to someone with a lower score, resulting in significant savings over the loan’s duration. Wondering How to Increase Your CIBIL Score? Read on to understand.

Here are ways to improve your credit score

Check your credit report regularly

It is important to check your credit report from CIBIL or any other credit bureau at least once in a while. It is also important to review your credit report so as to check for any inconsistencies or old information that might be dragging your score down. In the case of errors, it is crucial to apply for a dispute resolution as soon as possible to rectify these mistakes. This practice helps to keep your CIBIL score as accurate as possible in terms of your creditworthiness.

Pay your bills on time

The timely payment of all your financial commitments, including, credit card balances, and loans, is critical to maintaining a good credit score. Payment delays are reflected in the credit report and greatly affect the CIBIL score. Some of the ways through which you can avoid late payments include using payment reminders or using automated payments, which in turn would enhance your credit score.

Reduce credit card balances

Reducing balances on your credit cards is important to ensure that your credit utilisation ratio is low, which is important in credit scoring. High usage indicates possible financial troubles and credit dependence, which are detrimental to credit scores. Ideally, the utilisation should not exceed 30% in order to have a positive impact on the CIBIL score and to be closer to the ideal CIBIL Score Range.

Avoid taking on too much debt

High overall debt is also not good for your credit score. One should always check one’s debt-to-income ratio periodically and avoid taking up more liabilities than one can handle. Reducing your current obligation is equally important as reviewing your CIBIL score periodically because it proves that you are capable of paying back your loans on time.

Maintain a healthy credit mix

Being able to manage various forms of credit such as home loans, auto loans and credit cards is good for your credit rating. A diverse credit portfolio means that lenders can see that one is capable of handling different types of credit which is good for the CIBIL score.

Limit hard inquiries

Every time you apply for credit, a hard search is conducted which hurts the credit score. To protect your score, avoid applying for credit too often. Space out your applications and only apply for new credit when needed to reduce the effect on your CIBIL score.

Build a long credit history

The length of credit history is another factor that is considered in determining credit score. Maintaining credit accounts that are older and inactive is beneficial in the scoring process since the credit history indicates creditworthiness. Do not close old accounts that have a positive credit history as it can be detrimental to your credit score.

Negotiate outstanding balances

It is advisable to talk to your creditors if you are unable to clear your debts fully to agree on a realistic repayment schedule. Debt management and clearance may help avoid future defaults and can even be beneficial in future credit reviews.

Use a secured credit card

For those who have a lower credit score or are eyeing rebuilding their credit, a secured credit card can be useful. You get a line of credit usually equivalent to the amount you deposited as collateral. Responsible use of a secured card regularly can help build or re-establish credit scores.

Increase credit limits

In case you have been good at making your payments on time, you may request your credit card company to increase your credit limit. Higher limits can decrease your credit utilisation ratio if you adhere to or decrease your expenses, which may improve your CIBIL score.

Pay off high-interest credit first

Paying off debts that attract higher interest rates first can help you save on interest and pay off your debts faster. Debt management can also help raise your credit score, therefore helping you in your quest to get a higher CIBIL score.

Regularly update your income information

Your income may be used by some lenders and credit scoring models when determining whether or not you should be granted credit. Informing your lenders about changes in your income status may help you get better credit terms and possibly boost your score.

Avoid risks of co-signing

When you sign a loan as a guarantor, your credit score can be affected if the primary borrower defaults on the loan. Opt for the co-sign route only when you are sure that the borrower will repay the loan and keep track of the loan’s status to ensure your credit score is not affected.

Diversify your debt

Demonstrating the ability to manage several different types of debt can improve your credit picture. This not only maintains responsible credit management but also assists in presenting a sound financial position to the credit providers.

Stay informed about credit policies

To know how to manage your credit, you should be aware of the changes in credit scoring policies and credit market trends. It helps to make tactical decisions that can reflect current credit practices and can increase your CIBIL score.

Educate yourself on financial management

Taking your time to learn about credit management skills can go a long way in enhancing your financial literacy. Understanding credit, debt, as well as financial management, empowers you to make the right decisions for the improvement of your credit score.

Use technology to monitor credit

Take advantage of technology by utilising financial applications and credit monitoring tools to keep track of your credit score and the elements that influence it. These tools may provide you with early notifications about possible concerns and help you build a good credit profile, which is essential for attaining and keeping a high CIBIL score.


Improving your credit score is a deliberate endeavour that demands perseverance and financial discipline. Aiming for a score of 750 or above is not only advantageous for obtaining loans at favourable terms, but it also shows your general financial health and stability. Regularly monitoring and modifying your credit practices may considerably improve your financial chances while also providing the peace of mind that comes with financial security.

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