How To Improve CIBIL Score?

Credit score is one of the most important elements for lenders in order to determine how creditworthy you are. CIBIL is a credit bureau in India, one of four, that generates comprehensive reports based on your credit score. The reports comprise various elements like your credit history, repayment history, and more. Lenders across all domains use the CIBIL score to determine risk-based pricing for the applicants and the instant loans they wish to apply for. Lower the risk, lower the interest rates.

CIBIL score is a three-digit number that lies between 300 to 900, with 900 being the absolute best score. Usually, lenders consider any CIBIL score above 750 to be ideal.

Therefore, before getting into how to improve CIBIL score immediately, let us take a look at how the CIBIL score is calculated first.

Here are a few effective tips on how to increase CIBIL score quickly and efficiently:

improve cibil score

Maintain Discipline with Credit Score

Your outstanding debt and repayment history can significantly affect your CIBIL score. Repay your EMIs on time, and maintain a healthy relationship with your vendor. Defaulting on your EMIs can reduce your CIBIL score, and can cause some troubles the next time you try to take a personal loan or credit inquiry

Mix it Up With Your Credit Limit

The credit utilization ratio in your portfolio is another factor that can help you improve your CIBIL score. Look at it this way – If you can manage to stay within the credit allotted limits and restrict your credit usage, your CIBIL scores will go up fast. Get in touch with your vendor/s, and try to mix your credit usage up in order to customize it according to your credit limits.

Diversify Your Credit Types

If you have never taken a loan or credit, then you will have a low CIBIL score. Having a mixture of credit types can have a positive impact on your CIBIL score almost immediately. Having both secured and unsecured loans is a good idea to get things started. Additionally, ensure that you take these loans across different tenure to diversify your credit types even further. This sends a positive signal to CIBIL while they analyze your repayment history, and end up improving your CIBIL score.

Maintain Records

Maintain the records of all the previous loans you have taken, their tenures, and their repayment history. Avoid closing down any bank accounts which have a good repayment history as they can come in handy while increasing your CIBIL score. This will keep things stable for you as CIBIL assesses all your bank accounts in order to calculate your CIBIL score.

Do Not Default on Payments

Track all monthly payments and ensure you pay them on time, as defaulting on payments, even one, can adversely affect your CIBIL score. Moreover, delay in EMI payments attracts penalty fees and lowers your credit score. You can use tools like standing instructions, NEFT mandates, or auto-debit, as these can help ensure that the EMIs are paid on time. If you have to make cheque payments, ensure to remit cheques well before the due date to ensure enough time for the clearance period.

Check Your CIBIL Credit Report Regularly

If you want to know how to increase CIBIL score, then a simple way is to check your CIBIL score regularly for inconsistencies and errors. Any incorrect information or delay in either updating the report or updating important details can bring down your score. Errors can be reported and rectified instantly by submitting a CIBIL dispute resolution form online. For any person who wants to know how to increase CIBIL score, regular monitoring will help them improve their credit score.

Don't Apply for Multiple Credit Lines

Although opening a new credit line increases your credit limit, apply for new credit within your limit as it gives an impression that you are in continuous need of credit. Moreover, every application for a new credit line results in a detailed analysis of your credit profile to assess the risk you pose as a borrower, as hard inquiries are reflected in a credit report for two years. Moreover, multiple hard inquiries, as well as a hard inquiry that results in a rejection of a loan application, adversely impact the credit score.

What Can Affect Your CIBIL Score?

There are 4 factors considered by CIBIL while calculating your CIBIL score:

  • Repayment History

Repayment history accounts for about 35% of your CIBIL score. Missing out on EMIs or defaulting on your repayment can reduce your CIBIL score.

  • Repayment Duration and Type of Credit

Only taking one type of credit can also affect your CIBIL score – 10% to be precise. Make sure to keep altering between unsecured and secured loans for your credits.

how to improve cibil score
  • Existing Debt

If you use too much credit or have existing debt, it will negatively affect your CIBIL score. Existing debt coupled with credit utilization accounts for 30% of your CIBIL score.

  • Credit Inquiries

If you take many loans or credit inquiries in quick succession, CIBIL will assume that you are unable to survive without a loan and are credit-hungry, which can reduce your CIBIL score.

Increasing CIBIL Score From 600 to 750

The best way to increase CIBIL score from 600 to 750 is by paying your credit bills timely and maintaining a long and clean credit history. Apart from this, you can increase your credit score in the following ways:

  • Eliminate Credit Balances

Spend money on a credit card if you can repay it within the billing period. Repaying your loans and dues timely will increase CIBIL score from 600 to 750 and give a positive picture of the person to the lender. 

  • Avoid Having Multiple Loans and Credit Cards

Your credit score lowers when you have multiple loans and credit cards with various financial institutions. It is advised to avoid taking multiple loans and credit cards to increase CIBIL score from 300 to 750. 

  • Don’t Keep Applying for A Credit Card If Rejected

If you want to increase your CIBIL score from 600 to 750, then it is advised not to apply for a credit card immediately after your credit card application has been turned down. The tip is to be patient and reapply at a later stage after rejection to increase the CIBIL score instantly. 

How to Increase CIBIL Score After Settlement?

Here are some of the tips to increase CIBIL score after settlement:

  • After settling with the credit card company, it is advised to pay your bill in full and change your status from “Settled” to “Closed”.
  • Repayment record plays an important factor in calculating your credit score. So, make your loan/credit card payments timely and in full.
  • Pay off any outstanding on your loan or credit card to increase CIBIL score after settlement, as any outstanding balances will drag your score. Paying outstanding will be a significant step in improving your score and loan eligibility.
  • Another way to increase CIBIL score after settlement is by continuing to use your credit, which helps to rebuild your credit score. 

Is There an Option To Increase CIBIL Score Instantly?

Though it takes around 4-12 months to improve your credit score. However, the following tips can help you get a better score quickly:

  • Paying down your revolving credit balances.
  • Increasing your credit limit.
  • Check your credit card reports for errors.
  • Get negative entries that you have paid off removed from your credit report.


CIBIL scores are the single significant determinant when it comes to availing a loan. Hence, it is crucial to maintain a good score. The tips mentioned above can help you maintain a healthy score and increase your chances of getting a loan or credit and better interest rates. 

Finnable is an instant personal loan app that can help you keep track of all your credit dues and maintain a solid repayment history. You can conveniently avail personal loans or travel loans of up to INR 10 lacs instantly. Moreover, the app keeps you informed of all your due dates and offers seamless answers to your credit inquiries.

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