How to Improve Cibil Score?

CIBIL Score: How to Increase It?

A good CIBIL score is a golden ticket to getting high value loans at a low interest rate. Because this shows you have good repayment behaviour and it’s one of the first things that your lender will see before giving you a loan.

You also get some additional benefits like faster loan approvals, quicker disbursals, and the ability to choose more flexible EMI options. This makes credit more accessible, whenever you need it.

Continue reading this blog to know how to increase your credit score.

What is Considered a Good Credit Score?

CIBIL score ranges between 300 to 900, where 300 is the lowest and 900 is the highest score. The higher your score, the better your chances of a loan approval.

If you want lower interest rates for personal loan, faster approvals, and quicker disbursals, then you should aim to improve CIBIL score to at least 750. Anything above 750 is considered a good credit score. 

Credit Score Range

Look at this table to understand whether your current score is good or bad. You can work on your repayment behaviour to raise your CIBIL score.

CIBIL Score RangeRating

Also Read : How to Read Your CIBIL Report

Why is Your Credit Score Important?

Your credit score is a key indicator of your overall credit health and determines how risky it is to give you credit.

When you apply for personal loans or credit cards, this is one of the first things that a lender will check.

Individuals with a high credit score are seen as ideal borrowers for lenders that can help them unlock the best terms of borrowing.

Factors that Negatively Affect Your Credit Score

CIBIL Score: How to increase it by identifying factors that are negatively affecting it. You can unlock big ticket loans at the lowest interest rate by simply working on your CIBIL score. How to increase it? The first step is to understand the factors that can negatively affect it.

Missing or defaulting on your EMIs.

Making too many credit inquiries in a short period of time.

Taking too much credit debt.
Utilising more than 30% of your limit across credit cards.

How to Improve CIBIL Score Immediately in 8 Simple Steps

It takes effort to increase your credit score. But if you’re consistent, you can raise your CIBIL score to at least 750.

This will improve your credit profile and get you the best deals on loan offers across all lenders.

Take these 8 measures to improve your repayment behaviour and learn how to improve your CIBIL score.

1. Pay Bills on Time

2. Reduce Credit Utilization

3. Maintain a Healthy Credit Mix

4. Regularly Check Your Credit Report

5. Avoid Multiple Credit Inquiries

6. Maintain Older Credit Accounts

7. Settle Outstanding Debts

Pay Bills on Time

The consequences of missing your EMIs are much more than just paying penalty charges or receiving recovery calls.

Every time you miss your repayment, it is directly reported to the credit bureau which decreases your credit score. Hence, the first thing you should do is make sure you’re paying all your EMIs before or on due date.

An easy way to go about this is by keeping reminders and setting all your repayments on auto-debit. This way, you will never miss a payment and will be able to improve your CIBIL score.

Reduce Credit Utilization

Credit utilization is the percentage of your total credit limit that you have used. For example, if you hold a credit card with a ₹100000 limit, and you’ve spent ₹50000, then your credit utilization is 50%.

If you want to improve your CIBIL score, then make sure that your credit utilization doesn’t cross 30%. This is applicable to your credit cards.

When you use less than 30% of your credit limit, it indicates to the lender that you’re not a credit-hungry borrower. And can help you improve your credit worthiness. 

Maintain a Healthy Credit Mix

If you want a good credit score, you need to build a good repayment history. And to build a good repayment history, it is important to maintain a healthy mix of credit.

Always take a combination of secured unsecured loans. More importantly, ensure you repay all your personal loans on time.

Doing this helps you build a strong credit profile and increases your credibility as a borrower. It shows that you have experience handling different kinds of credit products and can be trusted. 

Regularly Check Your Credit Report

Checking your credit report helps you understand what your repayment history looks like. It can also help you find out if you have any outstanding loans that are reducing your credit score.

Most importantly, it can help you identify if any incorrect information is being reported to the bureau in your credit report.

Doing this is important because there’s a possibility that you could be doing everything from your end to maintain a good credit score, but your CIBIL score isn’t increasing because of incorrect reporting. 

If you spot any such inconsistencies, get it rectified from the bureau immediately. 

Avoid Multiple Credit Inquiries

Every time you apply for a personal loan or credit card, a hard inquiry is made to the bureau which is reflected in your credit report.  

If there are multiple hard inquiries made in a very short period of time, it can have a negative impact on your CIBIL score. This can lead to lenders considering you as a high-risk borrower.

If you want to increase your credit score, then avoid applying for too many loans or credit cards in a very short span. 

Maintain Older Credit Accounts

Maintaining a long and healthy repayment history is often seen as a good sign by lenders and could be key to increasing your CIBIL score. 

If you have held a credit card for a long period of time, make sure you keep it active and pay all the EMIs on time. 

Settle Outstanding Debts

The first step you should take to raise CIBIL score is to settle any of your outstanding repayments immediately. 

Every time you miss your EMI, it is reported to the credit bureau which can significantly decrease your credit score.

If you cannot make a complete payment immediately, then at least start by paying a minimum due amount across all your credit cards. You can also talk to your lender to increase the tenure of your loan to make the EMIs more manageable. 


With these 8 steps, you now know how to increase CIBIL score from 600 to 750.

When you make this change in your repayment behaviour, you can improve your credit profile. And you can get lower interest rates, higher loan amounts and quicker approvals on your future loans.

Start improving your CIBIL score today so you can have instant access to cash every time you need it.  

Also Read: How to Get Perfect 900 Credit/CIBIL Score?

Frequently Asked Question

How to Increase CIBIL Score From 600 to 750?
You can increase CIBIL score from 600 to 750 by maintaining your credit utilization and making all your repayments on time.
How to Improve CIBIL Score Immediately?
You can improve your CIBIL score by maintaining a clean repayment history, monitoring your credit report regularly, and always paying your EMIs on time.
How do I Increase My Credit Score in 30 Days?
You can increase your credit score in 30 days by checking your credit report for any inconsistencies and incorrect reporting. Also, clear any outstanding debt immediately.
How often should I Check My CIBIL score?

Checking your CIBIL score regularly is a good practice that can help you keep your credit health in check. It is recommended to check your CIBIL score atleast once in a year. However, you can check it as many times as you want as soft inquiries have no impact on your score.

How Long Does It Take to See Improvements in my CIBIL Score After Implementing Changes?

After implementing changes, you can see an improvement in your CIBIL score after 4-12 months.

Can I Improve my CIBIL Score Without Taking on New Debt?

Yes, you can. You can improve your CIBIL score by simply closing any kind of ongoing debt.

What Should I do if I Spot Errors on My Credit Report Affecting My CIBIL Score?

If you spot errors on your credit report, make sure you report it to the credit bureau immediately.

Is There A Minimum Cibil Score Required To Qualify For Loans Or Credit Cards?

While different lenders have a different eligibility criteria to offer loans, a CIBIL score of more than 750 can help you get the best terms of borrowing.

Does Closing Old Credit Accounts Affect My Cibil Score?

Yes, closing old credit accounts can negatively affect your CIBIL score. This is because the lender won’t have an access to your credit information anymore.

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