Why Your CIBIL Score Matters
Your CIBIL score is a 3-digit number between 300 and 900 that tells lenders how trustworthy you are as a borrower. A score above 750 gets you the best interest rates and fastest approvals. Below 650 and most lenders will reject your application outright.
Step 1 — Pay Every EMI and Bill On Time
Payment history makes up 35% of your credit score. Even one missed payment can drop your score by 50 to 100 points. Set up auto-pay for all your EMIs and credit card minimum dues so you never miss a date.
Step 2 — Reduce Your Credit Card Utilisation
If your credit card limit is ₹1 lakh and you regularly use ₹80,000 of it, lenders see you as credit-dependent. Try to keep your usage below 30% of your limit. This alone can improve your score by 40 to 60 points over 2 months.
Step 3 — Do Not Apply to Multiple Lenders at Once
Every time you apply for a loan or credit card, the lender pulls a hard inquiry on your CIBIL report. Multiple hard inquiries in a short period signal desperation to lenders and reduce your score. Use Finbros to check pre-approved offers with a single soft inquiry instead.
Step 4 — Clear Outstanding Dues
If you have any settled accounts or written-off loans on your report, try to clear them. Even if it happened years ago, an outstanding due shows up on your report and affects your score negatively.
Step 5 — Keep Old Credit Accounts Open
The age of your oldest credit account contributes to your score. Do not close your first credit card just because you do not use it. Keep it open with a small transaction once every few months to keep the account active.
Step 6 — Check Your CIBIL Report for Errors
Around 20% of credit reports contain errors — wrong personal details, accounts that are not yours, or payments incorrectly marked as missed. Check your free CIBIL report on Finbros and raise a dispute for any incorrect entries.
Step 7 — Maintain a Mix of Credit Types
Having only one type of credit — say just credit cards — is less ideal than having a healthy mix of a home loan, a personal loan and a credit card. Lenders like to see that you can manage different types of credit responsibly.
