A good CIBIL score can unlock better loan offers, lower interest rates, and increased financial opportunities. If you’re looking to get your loan approved easily, maintaining a strong CIBIL score is crucial.
In this guide, we’ll explore effective strategies to improve your CIBIL score and strengthen your financial standing.
8 Proven Ways to Increase Your CIBIL Score
1. Pay EMIs and Credit Card Bills on Time
Timely repayment of loan EMIs and credit card bills is one of the most important factors affecting your CIBIL score. Missed or late payments not only incur penalties but also lower your credit score.
To avoid this:
✅ Set reminders for due dates.
✅ Enable automatic payments from your savings account.
2. Keep Your Credit Utilization Ratio Low
Your credit utilization ratio (how much credit you use compared to your total credit limit) significantly impacts your score. Ideally, you should use only 30% or less of your available credit.
For example:
If your credit limit is ₹1,00,000, try not to spend more than ₹30,000 in a month. Higher utilization can indicate financial stress and negatively affect your score.
3. Use Credit Cards Wisely
Credit cards can be valuable financial tools, but only if used responsibly.
✔ Use credit cards for necessary expenses only.
✔ Pay off the full outstanding balance instead of just the minimum due to avoid high interest charges.
4. Maintain a Healthy Credit Mix
Lenders prefer borrowers who manage both secured and unsecured credit responsibly. Try to maintain a balance between:
- Unsecured Loans – Credit cards, personal loans.
- Secured Loans – Home loans, car loans.
This diversity demonstrates responsible credit behavior and positively impacts your CIBIL score.
5. Avoid Multiple Credit Applications
Each time you apply for a loan or credit card, lenders perform a hard inquiry on your CIBIL report. Multiple inquiries in a short period signal that you are desperate for credit, which can lower your score.
✔ Compare different loan offers before applying.
✔ Avoid applying for multiple loans at once.
6. Regularly Check Your CIBIL Report for Errors
Errors in your CIBIL report can negatively impact your score. Regularly reviewing your report helps you identify and correct mistakes, such as:
- Incorrect personal details.
- Wrong credit account information.
- Unjustified defaults or late payments.
If you find any discrepancies, file a CIBIL dispute resolution request online to get them corrected.
7. Monitor Co-signed or Guaranteed Loans
If you have co-signed a loan or acted as a guarantor, you are equally responsible for repayments. Any missed payment by the primary borrower can harm your CIBIL score.
✔ Regularly check if payments are being made on time.
✔ Communicate with the borrower to ensure smooth repayments.
Final Thoughts
By following these strategies, you can steadily improve your CIBIL score and enhance your financial profile. A higher score gives you access to better loan terms, lower interest rates, and greater financial flexibility.
Start implementing these tips today and take control of your financial future!