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10 Ways to Improve Your CIBIL Score


CIBIL (Credit Information Bureau India Ltd.) is India’s leading and most trusted credit rating agency. CIBIL is an entity that evaluates your financial responsibility and repayment capacity if you want to take a loan. It assesses various factors that include your employment history, credit card debt, repayment history, and personal and identity-related information, among others. After a careful assessment, it gives a credit score in a report that shows your capacity towards making repayments if you take a loan. Most banks and financial lending organizations trust the CIBIL rating without batting an eye. Here are 10 simple steps to improve CIBIL scores:

1. Pay your EMI payments on time.

If you have any current EMI payments or monthly or annual installments for a running purchase like a car, smartphone, home, or other big buys, always pay them on time. Timely repayments are one of the most crucial factors affecting your CIBIL score. They enhance your creditworthiness.

2. Clear your credit debt as soon as possible.

Before you get new credit to your name, make sure to clear all your pending debt. Any unpaid dues are an indicator of already piled up responsibilities. And if your bank or lender sees that most of your income goes towards the ongoing debt, they might conclude you will not have enough for another loan.

3. Don’t exhaust your credit limit.

To maintain a healthy credit score, stick to spending up to a ratio known as the credit utilization ratio. The ratio suggests using credit only up to 30% of your total credit limit. A foolproof way to prevent overspending is to make a budget and separating your needs from your wants.

4. Maintain old debt accounts.

Once you clear a specific debt or loan, do not close it thinking it will look bad on your CIBIL report. Paid-off debts showcase your repayment capacity to CIBIL and financial lenders. They also display your timeline of repaying debts.

5. Avoid taking multiple loans.

One of the most golden pieces of advice is not taking more than your plate can host. Unless you have ample funds to repay them, taking more loans might make it hard to make timely payments. They can also pull you into the loop of further borrowing and leave little to nothing for your daily expenses.

1. Create some credit history.

If you want to secure a loan for the first time, it is obvious you won’t have any credit history. As a result, CIBIL won’t be able to evaluate your repayment capacity. The solution is to get short or long-term loans and a healthy credit mix to build a good credit score.

2. Choose a longer repayment tenure.

To improve CIBIL scores, always try and opt for a longer loan repayment tenure. If you have a longer repayment tenure, the EMI payments will be less and be easily repayable. They will have a positive impact on your CIBIL score.

3. Avoid making any risky or unpredictable moves.

When applying for a loan, banks will always see where your money goes. If they see any risky purchases or a pattern of unpredictable moves, they might reject your loan application. An instance of this would be taking advance cash, paying lesser than what is due, or missing multiple repayments.

4. Avoid being a joint credit account holder.

While being a joint credit holder might have its advantages, they also carry their disadvantages. A partner’s defaults will impact you and your CIBIL score, ultimately lowering your chances of getting a loan.  

5. Check for errors on your CIBIL score report.

Sometimes, even CIBIL can make some errors in their CIBIL score reports. Mistakes can happen while updating records. If you identify any such error, immediately inform CIBIL by submitting an online dispute or reaching out to them. CIBIL has a responsibility of rectifying the same or at least responding with a solution within 30 days.


If you wish to apply for a loan to tick off future goals like higher education, marriage, home-ownership, travel, and the like, it is wise to start keeping track of your payments and get to improving your financial discipline, if necessary. These 10 steps can help you achieve the same.  

Disclaimer – ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. Please note, loans related services are not Exchange traded products and I-Sec is acting as a distributor to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.

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