credit cibil score

10 Effective Ways To Improve Your CIBIL Score

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A good CIBIL score is key to credible financial stability. It acts as your badge of dependability when you apply for a loan or a credit card. So, it is not wrong to say that a good credit score reflects your creditworthiness. 

But what if your credit score is poor or you have no credit score, as you never took credit in the past? Well, in such scenarios, there are several ways through which you can build or improve your credit score.

Let’s look at 10 effective ways to improve your CIBIL or credit score.

Ways to Improve CIBIL Score Effectively 

There are numerous ways to increase the CIBIL score, as follows – 

  1. Repay the dues on time 

Repaying dues on time is essential to improve or maintain the CIBIL score.   

It improves the financial standing in the eyes of lenders and helps avoid damaging long-term effects like late payment fees and even legal action. 

Paying credit card minimum due and loans on time can help build a strong credit profile and maximise the CIBIL score.

  1. Keep a check on the credit report 

Keeping a check on the credit report is a great way to increase your CIBIL score. By regularly reviewing the credit report, you can identify errors or areas of improvement that can help you improve your credit scores. 

Additionally, it is essential to dispute any discrepancies or mistakes reported in the credit report as soon as possible. 

  1. Limit your credit utilisation 

To ensure a high CIBIL score, you must be careful about credit utilisation. Credit utilisation is the amount of credit you use compared to your total available credit, and having too much of it can hurt your credit score. 

Ideally, you should limit your credit utilisation to not more than 30% of the total credit limit to keep your CIBIL score high. 

  1. Opt for different types of credit 

To ensure a good score, opt for different types of credit, including secured or unsecured loans and short and long-term debt. 

Different types of credit can show lenders that you are responsible for your finances and demonstrate a successful repayment history. 

  1. Set up payment reminders to pay on time 

Paying bills on time is critical to maintaining a good credit score. One way to ensure payment on time is by setting up payment reminders. 

Payment reminders can be set up in many ways, including emails, mobile apps, etc., ensuring that payments aren’t delayed or forgotten. 

  1. Increase credit limit 

One way to ensure the CIBIL score remains healthy is to increase the credit limit. It enables you to use more credit limits without over utilising them. It also shows creditors that you can take on additional debt, thus improving your CIBIL score for credit cards.

  1. Pay off long-standing loans

Multiple obligations on the credit record hurt the score. The smaller, longer-term debts seriously affecting the credit report should be closed. 

Thus, the total amount of debt decreases, which improves the credit score. 

  1. Do not keep applying for credit if rejected

Poor credit scores can majorly impact your financial life. So it is essential to understand that applying for credit when rejected can hurt the credit score instead of improving it. 

So, if your application gets rejected for credit, it is better to try to repair the credit score rather than keep applying for more credit. 

  1. Choose a comfortable tenure to pay EMIs

You can pick a longer repayment tenure when taking out a loan. This results in a lower EMI you can easily pay, lowering the risk of defaulting, postponing, or missing payments on EMIs.

  1. Debt consolidation 

Debt consolidation allows combining multiple high-interest loans into one manageable loan with a lower interest rate. By consolidating the debts into a single loan, you can pay them off faster with less interest and potentially boost your credit score. 


Improving your CIBIL score is crucial for several reasons. A high credit cibil score indicates a good credit history. It can make it easier for you to obtain loans and credit cards at favourable terms. 

You can take the steps mentioned in this article to improve your CIBIL score is essential to financial stability and success.

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