How to Improve CIBIL Score?

Your CIBIL score is extremely important solely because it influences your ability to get a loan from banks. Your credit history, which includes your past credit payments and payment patterns, determines your CIBIL score. To find out how to improve CIBIL score, you must be well equipped with your credit history and all the past payments made by you.


10 Smart Ways to Improve CIBIL Score

Improving your CIBIL score is essential for obtaining better loan terms, interest rates, and credit facilities. Here are some pointers to elevate your score:

  • Timely Payments - Ensure all your EMIs, credit card bills, and loan repayments are made on time. Delays or defaults negatively affect the score.
  • Limit Unsecured Loans - Avoid taking too many unsecured loans like personal loans or credit card debt. Lenders prefer a mix of secured (like home loans) and unsecured loans.
  • Monitor Credit Utilization - Keep your credit card utilization below 30% of the credit limit. High utilization indicates dependency on credit and can pull down your score.
  • Avoid Multiple Credit Enquiries - Every time you apply for a loan or credit card, a hard inquiry is made on your credit report. Multiple inquiries in a short span can lower your score as it portrays credit hunger.
  • Check Credit Reports - Regularly check your credit report for any discrepancies or mistakes. If you find any, report it immediately to the concerned credit bureau for correction.
  • Maintain Old Credit Accounts - Longer credit histories with a consistent repayment record can enhance your score. Avoid closing your oldest credit cards, even if you don't use them.
  • Limit Opening New Credit Lines - Opening many new accounts in a short time period can be seen as risky behavior, especially if you don't have a long credit history.
  • Negotiate with Creditors - If you have missed payments, communicate with your creditors, ask them to not report the skipped payments to the bureau or restructure your debt.
  • Maintain a Healthy Mix - Have a mix of credit, including both installment (like loans) and revolving credit (like credit cards). This displays your ability to manage different types of credit.
  • Avoid Guarantor Defaults - If you are a guarantor to someone's loan, ensure they are repaying it timely. If they default, it will impact your score as well.

By following these guidelines and being diligent with your financial decisions, you can effectively improve and maintain a robust CIBIL score.

Also Read : Experian Credit Score


Also Read : TransUnion CIBIL Score

What is a Good Credit Score?

Your credit score comprises a three-digit number, CIBIL Score Range from 300 to 900. It depends on your credit files and history and past payments made by you. 

Before we move on to how to increase CIBIL score immediately, let’s find out what a decent credit score is that will make you a capable borrower of loans.

Credit ScoreApproval ChancesCreditworthiness
700-749Very highVery good
600-640Considerably difficultdoubtful
Less than 600lowUrgent actions required

If you have a credit score of 750 - 900, you can easily take out loans from banks without any hassle. For a credit score of 700 to 749, chances are you will be examined well before you get a loan.

Make sure you understand the ideal balance for the principal amount you intend to take out as a loan before moving to how to improve CIBIL score.

Additional Reading: What is CIBIL dispute?

Reasons for Low CIBIL Score

There are several reasons that can affect your credit score, which eventually determines whether or not you will be approved to take out a loan. Knowing the reasons that influence your CIBIL score is as important as figuring out how to increase CIBIL score fast

Here is a list of all the potential reasons that eventually decrease your credit score.

Making late payments

If you have the habit of making frequent late payments, your credit score will always be on the lower side. Even a single late payment can affect your CIBIL score a lot.

Late payments not only indicate you are incapable of planning your finances properly but also make you an incapable borrower of loans.

The best way to get rid of such risks of late payments is by opting for a debt consolidation plan.

Taking out multiple loans

Before you move on to figure out how to improve CIBIL score, make sure you are aware of taking out multiple loans from multiple lenders. It may cause late payments and affect your CIBIL score eventually.

It will show that you are financially not capable enough to make your monthly payments on time. It can significantly impact your CIBIL score. When you take out multiple loans and fail to make your payments on time, your lenders may send inquiry requests to credit rating agencies. It affects your credit score a lot. It will eventually decrease your CIBIL score.

High utilisation of CIBIL limit

The credit limit you have refers to the maximum amount you can spend through your credit card. Credit limits are set based on your capacity of making repayments. If you're wondering how to increase my CIBIL score, make sure you keep track of how much you spend from your credit limit. 

If you constantly spend more than 50% of your credit limit, it will affect your credit score immensely. Ensure that your expenses remain within 50% to avoid a decreased CIBIL score.

Additional Reading: How to calculate credit score?

new credit score

Additional Reading: Equifax Credit Score

How Long Does it Take to Rebuild Credit Score?

Once your credit score drops, it will take a lot of time to improve your credit score from scratch.

It can be really difficult at times, but it is not impossible. Keeping a constant track of your credit history can help you rebuild your credit score sooner than you think.

A minimum credit score of 750 is considered to be a decent CIBIL score to apply for loans.

If you have less than 700 or 650 CIBIL scores, make sure you focus on improving your scores.

It can take anything between four months to 12 months for you to become eligible to apply for loans. The duration depends on your current CIBIL score and your credit history for which you should check free credit score. If you have a CIBIL score of less than 650, it can take you more than eight months to recover from that stage.

Additional Reading: CRIF credit score?

View and improve your credit score - for free.

Know how good your score is

Get insights on how to improve it

Unlock offers as per your score

chart_15f235bf64 (1).svg

How to Improve Cibil Score FAQs

How can I make my CIBIL score strong?


The major steps that you need to take in order to have a strong credit score include repaying your credit bills on time, avoiding multiple loans, and limiting your credit score utilisation. Also, make sure you check free cibil score and download credit history to avoid such inconveniences.

Is 800 a good CIBIL score?


800 CIBIL score is generally considered to be a decent credit score. Once you have a credit score of more than 750, you will become eligible to apply for loans from banks. 800 is a good credit score that keeps your approval chances on the higher side.

Why is my CIBIL score not increasing?


The major reason why your credit score might be stuck is that you are making late payments. Your lenders may send out enquiry requests to credit Card agencies that affect your CIBIL score immensely. Make sure you make your monthly payments on time to increase your credit score first.

Another possible reason is that you are probably using more than 50% of your credit limit every month. It affects your credit score a lot. Make sure you keep your expenses within 30% of your CIBIL limit so that sure scores increase fast.


Also Read : CIBIL Full Form

How is CIBIL score calculated?


Your credit score is calculated using your past payment history. It is calculated between a number of 300 to 900 based on your credit history. If your credit score is 750 to 900, credit institutions trust you more for being a responsible customer who manages their finances well.

How can I get a 900 CIBIL score?


Keep making your payments regularly on a monthly basis and avoid late payments. Do not spend more than 30% of your credit score monthly so that you can easily get a CIBIL score of 900. Keep making your payments regularly on a monthly basis and avoid late payments. Do not spend more than 30% of your credit score monthly so that you can easily get a Sybil score of 900.

The longer is your credit history, the better it is w.r.t your credit score. Make sure you're keeping your EMIs on time to have a decent credit history.

How can I solve the CIBIL problem?


To solve your CIBIL problem and improve your scores, understand why your score is low and what you can do to improve it. Do not forget to keep track of your credit history to analyse your credit scores and take the required steps to keep it around 800 to be on the safer side.

Additional Reading: Check CIBIL Score by Pan Card

How to Improve your CIBIL Score Immediately?


Improving your CIBIL score immediately can be challenging, as credit scores typically reflect sustained patterns of credit behavior over time. However, there are some actions you can take that might have a quicker impact:

  • Clear Outstanding Dues: Pay off any outstanding bills, especially those nearing due dates or overdue. This will prevent further negative reporting.
  • Settle Credit Card Balances: High credit card balances can impact your credit utilization ratio. Paying them down can provide a boost.
  • Check for Errors: Obtain a copy of your credit report and scrutinize it for mistakes or inaccuracies. Dispute any discrepancies you find so they can be corrected.
  • Negotiate with Lenders: If you have any defaults or late payments, talk to your lenders. They may agree to a "pay for delete" arrangement where they remove the negative entry upon receipt of payment.
  • Become an Authorized User: If a family member has a credit card with a good history and low utilization, they can add you as an authorized user. This can add positive history to your report. However, ensure that the primary cardholder maintains good credit behavior.
  • Limit New Inquiries: Each credit application causes a hard inquiry, which can lower your score. Limit new credit applications.

How long does it take to improve a CIBIL score?


When thinking about how long it takes to improve a CIBIL score, consider the following:

  • Minor Fluctuations: Small changes can be seen within a month or two, especially if you've made a significant payment or corrected an error on your report.
  • Major Delinquencies: Negative records such as bankruptcies or defaults can take several years to recover from, even if you adopt positive credit habits immediately after.
  • Overall Improvement: For most people looking to make significant improvements, it can take anywhere from several months to a couple of years of consistent positive credit behavior to see a noticeable change.

Remember, while some actions can lead to immediate improvement, maintaining a healthy CIBIL score is a long-term commitment. Adopting and maintaining good credit habits is the key to sustained improvements in your CIBIL score.