Interested in financial products


A poor CIBIL™ score can increase your financial problems and make it difficult to access credit, whether as a loan or credit card. The good news is that it is possible to improve your score – you need to stop worrying about the problem, and begin to take concrete steps right away to improve your score.

CIBIL™ is one of the four authorized credit bureaus in India which provide a credit score, the others being Equifax, Experian and CRIF High Mark.

Here are a few tips that will have a positive impact on your score:

Obtain your credit report and check for errors : While you might think you have a good credit history, there might be certain reporting errors that are unnecessarily dragging your score down. For example, if you have paid off your loan in full and closed the account, it might still be shown as current due to an administrative error. By correcting these errors, you can put an immediate stop to a negative effect on your score.

Similarly, it is also useful to check for any suspicious activity (e.g. a loan that you have not taken) which could be fraud. Filing a dispute with the bureau and making sure it is resolved can also have an immediate positive impact on your score.

Do not delay or miss any payments : Your repayment behaviour is a very important factor in calculating your credit score. Your track record of loan and credit card payments can make up almost one third of your score. Even a single late payment can adversely affect your CIBIL™ score. Many people pay their bills late or skip a payment completely. If you start paying all your bills on time and in full, you will see an immediate effect on your credit score.

You should aim to make your payments must be made at least 5 working days before the due date. If you are planning to make the payment by cheque, you must be sure that you make the payment 10 days before the due date.

Limit your utilization of credit limit : One of the easiest way to improve your credit score is to avoid utilising your credit card to its full limit. Limit your monthly credit card bill to not more than 50% of your limit. E.g. If you have a credit limit of Rs. 1,00,000 a month, make sure you do not exceed monthly expenses of Rs. 50,000. Using more than 50% of your card limit signifies that you might have issues with spending discipline and that you might not be able to keep aside enough to repay your debt obligations. This causes your score to drop.

Avoid multiple loan/ credit card applications in a short span of time : if you have too many enquiries in a short span of time, it is not looked at very positively. Imagine that you have made a credit card enquiry, a personal loan enquiry and a home loan enquiry within months - what does it look like to a lender? It shows that you are credit hungry and looking for multiple sources of credit. One way you can prevent a drop in your score is to avoid making several new applications for credit within a short time frame.

On average, it takes 4-12 months to repair your credit score, depending on your individual situation. All you need is some patience, commitment and self-discipline and you will achieve your credit goal.

Apply for a credit score


×Thank you! Your comment will be reviewed and posted shortly.

Write a review

CreditMantri will never ask you to make a payment anywhere outside the secure CreditMantri website. DO NOT make payment to any other bank account or wallet or divulge your bank/card details to fraudsters and imposters claiming to be operating on our behalf.