7 Ways to Improve Your CIBIL Score

7 Ways to Improve Your CIBIL Score

You improve your CIBIL score by paying every due on time, keeping card balances low, spacing out applications and fixing report errors. No action guarantees a set increase, but these 7 habits build it over time.
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Key Takeways

 
 

In summary

A CIBIL score ranges from 300 to 900 and reflects how you have handled credit. Since 1st January, 2025, lenders have reported to credit bureaus every 15 days instead of monthly, so changes show sooner.


  • On-time payment is the habit to start with.
  • Bajaj Finance lists a CIBIL score of 650 or higher as a Personal Loan criterion.
  • A lower score can mean a higher rate offered.
  • Sameer's Rs. 1.5 lakh loan at 19% costs Rs. 5,498 a month over 36 months (3 years).

Want to see what your score qualifies for? Check your loan offer with your phone number and a one-time password (OTP) → apply online in about 5 minutes → receive funds within 24 hours* of approval.

How can you improve your CIBIL score?

You can improve your credit profile through seven habits covering repayment history, credit utilisation, application behaviour and report accuracy. The table summarises what each habit addresses and the action you can take.


HabitWhy it mattersWhat to do
1. Pay on timeBuilds a consistent repayment record.Pay every EMI and card bill by its due date.
2. Keep card balances lowHigh credit utilisation means more of your available credit is in use.Keep balances well below your credit limits.
3. Space out applicationsApplications can generate credit enquiries.Apply when you have a clear borrowing need.
4. Maintain older accountsAccount history contributes to your credit profile.Keep suitable accounts in good standing.
5. Manage different credit typesYour profile can reflect experience with different products.Manage existing secured and unsecured credit responsibly.
6. Check for report errorsIncorrect entries can affect your credit profile.Dispute inaccurate balances, payment statuses or account details.
7. Clear overdue amountsUnpaid dues can affect your repayment record.Confirm the amount due with your lender and pay under the agreed terms.

Last reviewed: 16th October 2026


Other factors to keep in mind

  • Credit reporting frequency: Since 1 January 2025, lenders have reported credit information every 15 days or at shorter agreed intervals. Updated information can appear sooner, but this does not guarantee a score increase within 15 days.
  • Your own credit checks: Checking your own CIBIL score does not affect it. A lender's enquiry when you apply for credit is recorded separately.
  • The cost of building a credit mix: Taking another loan adds a repayment obligation. Manage your existing credit responsibly rather than borrowing solely to create a mix of credit types.
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How soon does a CIBIL score change?

A CIBIL score can change within weeks, because lenders have reported to credit bureaus every 15 days. Earlier, monthly reporting meant a missed payment could take up to 40 days to show. Faster reporting works both ways. A missed EMI shows sooner too.

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What can a lower CIBIL score cost you?

A lower CIBIL score can affect the loan terms offered to you, including the interest rate, depending on the lender's assessment. Even a small difference in the rate can change your EMI and total interest, so compare the full repayment cost rather than looking at the monthly payment alone.

 

Worked example: Sameer in Guwahati

Sameer is 29 and works as a salaried telecom engineer in Guwahati. He earns Rs. 52,000 per month and has a CIBIL score of 690 after carrying high credit card balances in 2025. He needs Rs. 1.5 lakh for his sister's wedding and compares two repayment tenures at an illustrative interest rate of 19% per annum.


EMI formula: EMI = P × R × (1 + R)^N ÷ [(1 + R)^N − 1]

P is the loan principal in rupees, R is the monthly interest rate expressed as a decimal, and N is the tenure in months. For an annual rate of 19% per annum, R = 19 ÷ 12 ÷ 100. The formula calculates equal monthly instalments covering principal and interest.


Repayment tenureMonthly EMI (Rs.)Total interest (Rs.)EMI as a share of monthly salary
24 months (2 years)7,56131,47114.5%
36 months (3 years)5,49847,94310.6%

Last reviewed: 16th October 2026


The 36-month tenure reduces Sameer's EMI by Rs. 2,063 per month but increases total interest by Rs. 16,472. The 24-month option costs less in total interest, while the 36-month option leaves him with more money each month for other expenses.


Sameer should choose the tenure that fits his full budget, including existing EMIs, household expenses and savings needs. Making repayments on time supports his credit history, but choosing a shorter tenure does not itself guarantee a faster CIBIL score increase.


What can delay approval: a CIBIL score below 650 or existing EMIs that take up a large share of your income. Names or addresses that do not match across documents, and more than one loan application in the same month, can also slow it down.


Working on your CIBIL score? With a Bajaj Finance Personal Loan, you can borrow Rs. 40,000 to Rs. 75 lakh, subject to eligibility. Check your loan offer with your phone number and a one-time password (OTP) → apply online in about 5 minutes → receive funds within 24 hours* of approval.

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What are the eligibility criteria and documents required?

Your CIBIL score is one criterion used to assess a Personal Loan application. To be eligible for a Bajaj Finance Personal Loan, you need to meet the criteria listed below:


CriterionRequirement
NationalityIndian
Age21 years to 80 years.
Employed withPublic, private, or multinational companies (MNCs).
CIBIL Score650 or higher.
Customer profileSelf-employed or Salaried

*You should be 80 years or younger, at the end of the loan tenure.

Last updated: 16th October, 2026


Meeting these criteria does not guarantee approval, which depends on eligibility, verification and credit assessment. No collateral or guarantor is required.


You may need the following documents, subject to your profile and application:


Document categoryAccepted options
KYC proofAadhaar/ passport/ voter’s ID/ driving license/ Letter of National Population Register/ NREGA job card
Identity proofPAN card, Real-time image / photograph
Employment proofEmployee ID card, Letter of Allotment of Accommodation Issued by Employer
Income proofSalary slips — last 3 months, Bank account statements — last 3 months
OthersPension order, Utility bill, Phone bill, Piped gas bill, Property / Municipal tax receipt

Not every applicant needs every document. Confirm the final list of required personal loan documents during your application.

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What interest rate and charges apply?

The cost of a Bajaj Finance Personal Loan includes interest and applicable fees. Your offered interest rate depends on the terms presented for your application, while charges can vary according to the loan type and the transaction involved.
 

ChargeAmount
Interest rate10% to 30.5% per annum, subject to applicable terms and customer eligibility
Processing feeUp to to 4.13% of the loan amount, inclusive of applicable taxes
Bounce chargesRs. 700 to Rs. 1,200 per bounce
Penal chargeUp to 36% per annum on the overdue instalment
Part-prepayment and foreclosure (Term Loan)Up to 4.72% of the principal, inclusive of applicable taxes
Part-prepayment (Flexi Dropline and Flexi Hybrid Loans)No charge
Flexi facility chargeRs. 1,999 to Rs. 18,999, inclusive of applicable taxes
Annual maintenance (Flexi Dropline Loan)Up to 0.295% of the Dropline limit
Annual maintenance (Flexi Hybrid Loan)Up to 0.472% in the initial tenure; up to 0.295% in the subsequent tenure

Last updated: 16th October, 2026

*Terms and conditions apply.


Charges are disclosed in the applicable product information and loan documents, so read your Key Fact Statement before you accept. Add the processing fee to the interest when you compare offers, and see the personal loan interest rates and charges page for details.

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When should you wait before applying for a loan?

Consider addressing issues in your credit profile before applying when overdue payments, high credit card balances or inaccurate report entries could affect a lender's assessment. The appropriate next step depends on the issue and the urgency of your borrowing need.


SituationPractical next stepConsideration
Your score is below 650Review your report, bring overdue accounts up to date and maintain timely repayments before reassessing eligibility.Improvement depends on your credit history and updated reporting.
You recently applied for creditReview the status of your existing application before making another.Several applications in a short period can generate multiple credit enquiries.
Your report contains an errorRaise a dispute with the relevant credit bureau and provide supporting documents.Allow time for the bureau and lender to investigate and update the record.
Your score meets the listed criterion and you have a clear borrowing needCompare your offer with your budget and repayment capacity.Include interest, processing fees and other applicable charges in the decision.

Last reviewed: 16th October 2026


A credit score service cannot guarantee a particular increase in exchange for a fee. Use the credit bureau's official dispute process to address inaccurate information, and retain your payment receipts and correspondence for reference.

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How do you apply for a Bajaj Finance Personal Loan?

You apply for a Bajaj Finance Personal Loan online in five steps:

  1. Check loan eligibility: Enter the required loan amount and repayment period, then select "CHECK LOAN OFFER".
  2. Enter personal details: Provide the requested personal, financial and employment information.
  3. Review the loan offer: Check the offered amount, interest rate, EMI, tenure and applicable charges.
  4. Complete KYC verification: Complete the required identity checks and verify your bank details.
  5. Speak to a loan specialist: After you submit the application, an executive contacts you about the next steps.

The process can differ for new and existing customers, and additional documents may be requested during verification. Before accepting an offer, check that the EMI fits your budget and that you understand the repayment schedule and applicable fees.

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Key offerings: 3 loan types

  • Flexi Hybrid Loan
  • Flexi Dropline Loan
  • Term Loan

  • Withdraw and prepay – no extra charges
    You can withdraw from your limit and prepay as many times as you want, without extra charges.

  • Instalment pattern
    You can pay interest-only EMIs for up to 36 months, after which, the EMI will consist of both, the principal and the interest. EMI is applicable only on the withdrawn amount.

  • Flexi facility charges
    Flexi facility charges applicable based on your loan amount.

  • Withdraw and prepay – no extra charges
    You can withdraw from your limit and prepay as many times as you want, without extra charges.

  • Instalment pattern
    Fixed EMIs that cover both the principal and interest on the loan amount you withdraw.

  • Flexi facility charges
    Flexi facility charges applicable based on your loan amount.

  • Amount disbursed in one go
    The entire loan amount is disbursed at the start.

  • Instalment pattern
    Fixed EMIs that cover both the principal and interest.

  • Flexi facility charges
    No Flexi facility charges.

Personal loan interest rate and applicable charges

Type of fee

Applicable charges

Rate of interest per annum

10% to 30.5% p.a.

Processing fees

Up to 4.13% of the loan amount (inclusive of applicable taxes).

Flexi Facility Charge

Term Loan – Not applicable

Flexi Loans –Up To Rs 1,999 To Up To Rs 18,999/- (Inclusive Of Applicable Taxes)

Will be deducted upfront from loan amount.

Bounce charges

Rs. 700 to Rs. 1,200/- per bounce

“Bounce charges” shall mean charges for (i) dishonor of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonor of payment mandate or non-registration of the payment mandate or any other reason.

Part-prepayment charges

Full Pre-payment:

  • Term Loan: Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount as on the date of full pre-payment

  • Flexi Term (Dropline) Loan: Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount, as on the date of full prepayment.

  • Flexi Hybrid Term Loan: Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount, as on the date of full prepayment.

Part Pre-payment

  • Up to 4.72% (Inclusive of applicable taxes) of the principal amount of Loan prepaid on the date of such part Pre-Payment.

  • Not Applicable for Flexi Term (Dropline) Loan and Flexi Hybrid Term Loan.

Penal charge

Delay in payment of instalment(s) shall attract Penal Charge at the rate of up to 36% per annum per instalment from the respective due date until the date of receipt of the full instalment(s) amount.

Stamp duty (as per respective state)

Payable as per state laws and deducted upfront from loan amount.

Annual maintenance charges

Term Loan: Not applicable

Flexi Term (Dropline) Loan:

Up to 0.295% (Inclusive of applicable taxes) of the Dropline limit (as per the repayment schedule) on the date of levy of such charges.


Flexi Hybrid Term Loan:

Up to 0.472% (Inclusive Of Applicable Taxes) Of The Dropline Limit During Initial Tenure. Up to 0.295% (Inclusive Of Applicable Taxes) Of Dropline Limit During Subsequent Tenure

Credit guarantee scheme feeUp to 1.18% p.a. (pro-rated daily till 31st March) (inclusive of all applicable taxes) of the loan amount
Credit guarantee scheme renewal feeUp to 1.18% p.a. (inclusive of all applicable taxes) on the outstanding loan amount as on April 01 of the subsequent Financial Year.
*Renewal Fee to be collected only for 3 subsequent financial years.
 
**If the Remaining Tenure is less than 12 months, the CG Fee in subsequent years shall be charged prorated.

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Frequently asked questions

Improving the score

Disputes and loans

How long does it take to improve a CIBIL score?

It depends on where you start and what pulled it down. Since 1st January, 2025, lenders report every 15 days, so each on-time payment shows sooner than before. Rebuilding after missed payments takes a sustained record of on-time payments. No action guarantees a set increase in your CIBIL score, so start early.

No. Checking your own report is a soft enquiry and does not affect your CIBIL score. A lender's check when you apply for a loan is recorded as an enquiry. Check your report before you apply, so you can fix errors first and avoid 2 or more applications in the same month.

Raise a dispute with the credit bureau that issued the report, using its online dispute form, and attach proof such as a closure letter or payment receipt. The bureau checks with the lender before correcting the entry. Follow up until the corrected CIBIL score appears on your next report, and keep copies of every letter.

Bajaj Finance lists a CIBIL score of 650 or higher as a criterion, along with Indian nationality, the listed age range and your employment profile. Meeting the criterion does not guarantee approval, which depends on verification and credit assessment. A higher score supports a lower rate offered on your loan.

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Bajaj Finance Limited has the sole and absolute discretion, without assigning any reason to accept or reject any application. Terms and conditions apply*.
For customer support, call Personal Loan IVR: 7757 000 000