"Learn effective ways how to improve your CIBIL Score instantly. It takes usually 3 to 12 months to improve your CIBIL score. Read our blog to know more."
Published: 6 February 2024
Updated: 6 February 2024
CIBIL Score is a unique method that is useful for analyzing the profile of a person who is ready to apply for a loan. This is a three-digit number that makes the decision easy for a financial company to provide a loan. Your CIBIL is calculated by some credit bureaus like TransUnion etc. When financial companies check your CIBIL, your financial records like your account, credit, and repayment behavior are reflected in the report. A good CIBIL Score is most important when you apply for a loan, otherwise, loan companies do not provide loans easily on low CIBIL.
When you decide to apply for a loan, your CIBIL score is essential. It makes you eligible to get a loan easily. A low credit score is always responsible for loan application rejection. Loan companies use CIBIL scores as reference points to analyze loan applicant profiles. It makes it easy for lending organizations to approve a loan or not. You will get Low interest rates on loans if your CIBIL Points are high but in situations of low CIBIL, you will get higher interest rates.
Your CIBIL score was reduced for multiple reasons, below are some reasons:
CIBIL score indicator range is between 300-900. But a higher score is better. See what it means for your credit below.
CIBIL Score Range |
Rating |
Implication |
300-549 |
Poor |
Very low approval chance. Very high rates and fees. Need collateral or guarantor. |
550-649 |
Fair |
Low to moderate approval chance. High rates and fees. Lower limits and worse terms. |
650-749 |
Good |
High approval chance. Competitive rates and fees. Higher limits and better terms. |
750-900 |
Excellent |
Excellent approval chance. Best rates and fees. Highest limits and most favourable terms. |
Know the simple ways to improve your CIBIL Score with these 15 helpful tips. Whether you're new to credit or looking to boost your score, these easy-to-follow strategies can help you achieve better financial health. Get started today and take control of your credit journey.
Pay your EMIs and bills timely. Set reminders or auto-debit. This shows discipline and boosts score.
Spend less on credit cards. Pay off balances or increase limits. Use multiple cards and spread spending. This lowers the credit utilization ratio.
Don’t apply for many loans or cards in a short time. This reduces hard inquiries and score drops. Apply only when needed and after comparing.
Have a mix of secured and unsecured loans. Secured loans have collateral, like a home or car. Unsecured loans don’t, like personal or education. This shows credit handling ability.
Choose a longer tenor for loans. This makes EMI low and easy to pay. Paying EMI on time improves your score over time.
Talk to the lender or card issuer if in trouble. Don’t ignore or default on debts. This worsens score and history. Ask for restructuring or moratorium. This avoids settlement or write-off.
Check credit reports regularly and fix errors. Get a free report from CIBIL or other bureaus. Use online platforms.
Use credit cards smartly. Use them for regular expenses and pay the full amount every month. This builds a good history and improves scores. Use card features and benefits to save money and boost your profile.
This process lowers your credit risk and boosts your CIBIL score.
You can use someone’s credit card as authorized. This improves your CIBIL score by using your credit history.
Pay on time or it will hurt your and their CIBIL score. Talk to them if needed.
This shows you are careful with credit and avoid fees or score damage. Track your limit and balance.
Pay them off first or your credit use ratio and CIBIL score will worsen. Don’t move balances around.
This helps you pay your debts faster and easier. Get a second job, save money, or invest wisely.
If you can’t improve your CIBIL score yourself. They can guide you and fix your credit report. Choose carefully.
Your CIBIL score is very important for getting credit and good loan deals. So, you should always keep a high CIBIL score and improve it if it is low. By doing the things we said above you can make your CIBIL score better slowly and surely and get more chances of good credit and money health.
Also read: Apply for Instant Personal Loans in Bangalore
Q 1. What is CIBIL Score?
Ans - The CIBIL score is a numeric digit that is helpful in the loan approval process for lending organizations. If your CIBIL is high it means you are a trustworthy borrower, but if your CIBIL profile is low then lenders are not interested in preferring you.
Q 2. What is a good CIBIL Score?
Ans - A good CIBIL score is a number between 700 and 900 that shows how well you pay back the loans and credit cards.
Q 3. How to increase CIBIL Score?
Ans - To boost your CIBIL Score you should pay your bills and loans at the correct time. You should use your credit cards within the limit. Never take multiple loans at once.
Q 4. How to check the CIBIL Score?
Ans - To check your CIBIL score you can visit the websites of the following CIBIL bureaus: TransUnion CIBIL, Equifax, Experian. Apart from this, you can use an Online Lending website like My Mudra who provide tools for CIBIL checks.