How to Increase your Cibil Score: 10 Proven Steps

Your creditworthiness is measured using a metric called your credit score. Different establishments calculate an individual’s creditworthiness based on different metrics.  

Based on these credit scores, lenders assess your credibility and eligibility before approving your loan or other lending instruments, such as credit cards. Authorised organisations like CIBIL (Credit Information Bureau India Limited), CRIF, Equifax, and Experian provide these scores. Since CIBIL is the most popular organisation in our country, a credit score in India is often referred to as a CIBIL score. It is the document that contains your credit history.

What is considered a good credit score?

The credit score ranges from 300 to 900 on the CIBIL report. The closer it is to the higher side, the more credible your credit score is. A credit score between 300 and 549 is considered poor, a score between 550 and 700 is considered fair, and anything above 700 is considered an excellent credit score. 

There are multiple factors that affect the score, which can be checked online on authorised websites. Many NBFC organisations also facilitate free credit score-checking services.

The question is, "How can we improve your CIBIL score?" Let us look at some of the ways that you can improve your CIBIL score.

Make timely payments

Discipline is the key to maintaining a good score. Timely payments of your EMI and credit card bills can positively impact your credit score. The first and foremost answer to how to increase your CIBIL score is to ensure zero defaults.

Check your CIBIL report regularly

It is very human to make mistakes. CIBIL can also make mistakes. Therefore, it is important to keep an eye on your credit report and get the mistakes rectified at the earliest. Make sure that the transaction reports are included in the report, as the delay can affect your credit score.

Take limited debt

Overdue/delayed payments is the primary factor that brings down your credit score. It is therefore recommended that you only take on debt that you can easily repay. Taking on multiple debts also gives the impression that you are in the habit of getting into a vicious cycle of debt. This further brings down your credit score.

Show good debts

It is also not advisable to have no debt history. The lender needs to know your payment history to build confidence that you will pay on time. Therefore, using some form of debt, such as using credit cards every now and then or taking out small consumer loans, will help improve your credit score. 

Beware of risks

Another way to improve your CIBIL score is to ensure that your credit history does not reflect any risks. One example is paying a smaller amount than you normally do. Another risk can be taking cash advances, which are perceived as financial stress.

Set credit limits

Make it a practice to set credit limits, which can have a positive impact or negative impact depending on whether you are closer to or over your allotted limit. Setting a limit with the bank is suggested to ensure that you do not get into bad debts.

Track the tenor

The longer the tenor, the better the ability to pay on time. Longer tenors with lower EMIs will save you from defaulting or delay payments, which will benefit your credit score. This will surely enhance your credit score, increasing your credibility in applying for loans in the future.

Choose different credit forms

As mentioned above, having no credit history is not advantageous. To improve your credit score/history, you should take out a mix of secured and unsecured loans. It is also important to have a mix of long and short term loans.

Limit the number of credit cards

Although using credit cards wisely helps to build a healthy credit history, you should make an informed and wise decision to have a limited number of credit cards. A maximum of two to three credit cards is relatively easier to maintain while ensuring timely payments. Having more credit cards can lead to missed payment deadlines. Keeping track of numerous cards will inevitably lead to missed or delayed payments, which will affect your credit score negatively.

Joint credit applications

You need to be more vigilant about your credit score if you have applied for credit with someone else. It may not be your fault, but if your co-applicant is late or misses a payment, the low credit score will show up on your report. Thus, it becomes even more important to ensure that your partner makes payments on time.


Keeping the above factors in mind will help you find the answer to how to improve your CIBIL score. Also, remember that there is no magic formula on how your CIBIL score can be improved. You cannot expect to improve your credit score in a day or two. You need to remain diligent and vigilant to improve your credit score.

A good credit score not only helps you get loans and credit easily, but it also helps you get better interest rates from lenders. Be patient and prudent to get the desired results.


The investment options and stocks mentioned here are not recommendations. Please go through your own due diligence and conduct thorough research before investing. Investment in the securities market is subject to market risks. Please read the Risk Disclosure documents carefully before investing. Past performance of instruments/securities does not indicate their future performance. Due to the price fluctuation risk and the market risk, there is no guarantee that your personal investment objectives will be achieved. 

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