A high CIBIL™ score is one of the ideal ways of getting a good loan offer in India. It can fetch you better loan rates apart from flexible loan tenures and higher amounts. However, a low CIBIL™ score can hamper liquidity as you may not have access to funds when you have an urgent requirement. This can adversely affect your ability to borrow.

In India, CIBIL™ is one of the oldest and well-established credit rating agencies. Banks and financial institutions use credit scores published by CIBIL™ as a reference for evaluating a borrower’s creditworthiness. A credit score of more than 700 is considered excellent by lenders. Any score lower than this will invite problems as far as getting loans is concerned.

Today all banks and lenders verify your CIBIL™ score before extending any kind of credit or financial products, like personal loans, credit cards etc. Therefore, it is important to have a good CIBIL™ score. However, even if an individual may have a low CIBIL™ score, there are ways to improve the same and bring it to acceptable levels.

Here are 7 smart tips on how to easily improve the CIBIL™ score.


  • Ensure timely payment of dues: 

Have you missed an EMI? Have you delayed your credit card payments? Then it is time to get organised. Set reminders for your payments and adopt some level of discipline when it comes to credit. Settling outstanding debt has a significant impact on your credit score. Delaying EMI payments not only forces you to pay penalty charges but also lowers your credit score. Therefore, if you want to improve the CIBIL™ score, you must ensure to pay your dues on time and consistently. It is important to make use of services that allow the automation of bill payment. This way, you don’t have to worry about missing any payment deadlines.

  • Use credit prudently: 

It is best to avoid taking on a lot of debt at the same time. The number of credit facilities you avail of within a period should be kept at the minimum. To avoid crashing your credit score, make sure to repay the existing loan before taking on another. If you borrow multiple loans at once, it reflects credit hunger on your part and this is viewed negatively by lenders. Thus, your credit score will be further impacted. Whenever you take a loan, ensure to repay them successfully to give your credit score a boost.

  • Maintain a healthy credit mix:

Having the right combination of secured loans (for example, home loans, auto loans, etc) and unsecured loans (such as personal loans, credit cards, etc) with long and short tenures can benefit your credit score. If you borrow several unsecured loans, it may be viewed negatively by lenders and impact your credit score.

  • Apply for credit as per your repayment capability: 

Never give an impression to lenders that you are constantly in need of credit. It is sensible to only apply for new credit when you need it and can repay it instead of wanting it for leisure indulgences. Excess of debt can impact your credit score negatively.

  • Frequently monitor your joint accounts: 

If you have co-signed, guaranteed or jointly held loan accounts, you are equally responsible for any missed payments towards that account. All joint holders’ (or the guarantor’s) negligence can affect your future ability to access credit when needed. It is therefore recommended to constantly monitor the account personally instead of relying on the joint account owners or guarantors.

  • Frequently review your credit history:

Monitor your CIBIL™ score and credit report regularly to check for any gaps or inconsistencies.  Sometimes, CIBIL™ may include errors while updating your credit records and incorporate incorrect information in your credit report. At times there could be a delay in recording credit-related details. Even if you have repaid a loan, it may not be immediately updated on the credit report. This too can hurt your credit score. In case you notice such errors, you must get them rectified instantly. For this, it is crucial to review your credit history frequently.

  • Constantly work towards a good history: 

Debt is essential for most of us. However, you must use the right kind of debt, use it judiciously and ensure to service it on time. Try to opt for a longer loan tenure to ensure that the EMI remains low and it does not cause an additional financial burden. You could also request an increase in your credit limit. The idea is to have more credit and maintain a low utilisation ratio for a good credit score.


You can build up a healthy credit score over time. This can help you to get quick and convenient loans in the future. However, you must practice these smart tips regularly and keep constant track of your loan EMIs and credit card monthly bill payments.