How to improve CIBIL score?


There are several ways in which you can improve your credit score. Depending on how good or bad your score is, it can take between 4-12 months to improve your score in order to become loan eligible.

How to improve CIBIL score?

There are several ways in which you can improve your credit score. Depending on how good or bad your score is, it can take between 4-12 months to improve your score in order to become loan eligible. Here are some of the things you can do to improve your score:

  • Obtain your credit report immediately: When you read your report, you may find errors that are unnecessarily dragging down your score. For example, even after you have fully paid your loan with interest, it might be shown as outstanding due to a reporting or administrative error. If there are any errors in your credit report, you can file a dispute to correct it. This will result in an immediate increase in your score.

Similarly, there may be instances of fraud that are bringing down your score for no fault of yours. For instance, you might notice a loan in your name that you have not taken. It is important to report any instance of suspicious activity and get it rectified at once. This will also have an immediate effect on your score.

  • Make sure you pay your bills on time: This is the single most important thing you can do to improve your score. If you make all your loan and credit card repayments on time and in full, it will have a significant positive impact on your score. Even a single missed or late payment affects your score adversely. Your payment record forms up to one third of your credit score, so if you make every payment on time, you will quickly improve your score. So start making your payments in time right away and see the resulting improvement in your score.
  • Ensure you limit your spending to 50% of your card limit: Make sure you don’t exceed more than 50% of your credit card limit at all times. For instance if your limit is Rs 1 lakh a month, limit your monthly spending to Rs. 50,000 or less. This will have a positive impact on your credit score. When you consistently spend more than 50% of your limit, it signifies a lack of spending discipline, and will have a negative impact on your score.
  • Do not apply for multiple loans or credit cards at the same time. When you apply to multiple lenders for loans or credit cards within a short period of time, it signifies that you are ‘hungry’ for credit and need to apply to various sources simultaneously. Lenders become nervous about your ability to repay and might reject your application. Each rejection further decreases your score. 

You can do all these things to improve your credit score on your own. If you do not have the time or sufficient knowledge to do it on your own, CreditMantri can help guide you on how to increase your score in the quickest and most efficient way.

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Comments (4)


Commented on 29, January , 2016

As long repayments are made in a timely manner, there will be no negative impact on your credit score and if you consistently maintain a good repayment history, your credit score will improve. However, it is advisable that you try and maintain your credit limit utilization to under 50 percent of your credit line. Do let us know if you require any further clarifications, and good luck with maintaining your credit score.


Commented on 28, January , 2016

can u let me knw in detail that if card limit is 1lakh and we swipe in total amount and if we repay in emi basis will that affect the score or payingin time will increase the score


Commented on 20, January , 2016

The lower the credit limit utilization the better the impact on the credit score. However, this does not mean that nil utilization has the best impact. Based upon our experience, we recommend credit line utilization of under 50 percent.

Naveen Kumar

Commented on 19, January , 2016

I heard the spending limit must restrict to 30 per of card limit so as to increase the score. Please confirm weather it is 30 per or 50 per category.

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