Key takeaways
Understanding the right strategies can help you improve CIBIL score steadily and build a stronger credit profile. Key points to remember include:
- Pay EMIs and credit card bills on time to maintain a positive repayment history.
- Keep credit utilisation below 30–40% and avoid multiple loan applications together.
- Maintain a healthy mix of secured and unsecured credit and retain older credit accounts.
- Regularly check your credit report for errors and get them corrected promptly.
- Practise disciplined borrowing habits consistently, as it may take several months to improve CIBIL score significantly.
Improve CIBIL score by following disciplined financial habits such as paying EMIs and credit card bills on time, maintaining low credit utilisation, and avoiding multiple loan applications within a short period. A healthy mix of secured and unsecured credit, along with retaining older credit accounts, can also strengthen your credit profile. Regularly reviewing your credit report for errors and correcting inaccuracies promptly can support steady improvement. Consistent financial behaviour over time is the key to building and maintaining a strong CIBIL score.
What is considered a good credit score?
TransUnion CIBIL is one of the four credit bureaus generating reports related to credit scores in India. CIBIL scores range between 300 and 900. The closer the score is to 900, the better it is considered. While a score between 300 and 549 is deemed to be poor, anything from 550 to 700 is deemed to be fair. Scores belonging to either category can be improved.
Focus on understanding the factors that impact your credit score and take conscious measures to improve it. You can easily increase your CIBIL Score over time if you keep at it. Take a look at seven such tactics that will help you improve your CIBIL Score.
Understanding CIBIL Score ranges and credit ratings
CIBIL Score Range | Rating |
300-500 | Poor |
550-650 | Average |
650-750 | Good |
750-900 | Excellent |
How to improve CIBIL Score?
- Set reminders for payment and be disciplined with credit
Your repayment of outstanding debt can have a significant impact on your credit score. This is why you need to maintain discipline when it comes to paying EMIs. Delays in EMI payments force you to pay a penalty fee and lower your credit score. So, if you find that this is something that you’re guilty of, make it a point to set reminders for EMI payments so that you can tackle them on time. - Ensure you maintain older credit cards to lengthen credit history
If you have old credit cards, you should continue to maintain them as long as you can pay your bills in full, on time. This will help you build a solid and lengthy credit history, which will help you increase and maintain a good credit score in the future.
Additional Read: How to check CIBIL score - Customise your credit limit
Your credit utilisation ratio has a significant impact on your credit score. The more you are able to restrict your credit usage as per the allotted limit, the better it is for your credit score. Reaching the limit has the opposite effect as it lowers your credit score. One way of tackling this is to contact your lender and customise your credit limit based on your expenses. - Opt for a longer tenor when you take a loan
When borrowing a loan, try choosing a longer tenor for repayment. This will ensure that your EMI is low so that you can make payments on time. Your credit score will improve when you don't default, delay, or skip paying EMIs.
Additional Read: Personal loan for low CIBIL score - Avoid taking on too much debt at one time
The number of loans you take in a fixed period of time should be minimal. Repay one loan and then take another to keep your credit score from crashing. If you take multiple loans at once, it may indicate that you are in a continuous cycle of insufficient funds. As a result, your credit score will fall further. On the other hand, if you take a loan and repay it successfully, it will boost your credit score. - Check your CIBIL report for mistakes and rectify them
In certain cases, CIBIL may make mistakes when updating your records, note incorrect information against your report, or delay recording details. This will also bring down your score. So, ensure that you check your CIBIL report from time to time. This will help you identify any errors and correct them by submitting a CIBIL dispute resolution form online. As a result, your credit score will improve. - Create credit history by choosing different forms of credit
If you haven’t borrowed funds in the past, you won’t have a credit history, and as a result, your CIBIL score will be low. So, ensure that you borrow a healthy mix of credit, both secured and unsecured loans, of a long and short tenor to build a strong credit score. This will help you access low personal loan interest rates and higher loan amounts in the future whenever you choose to apply for a personal loan.
These are some habits that you can weave into your life to improve your credit score over time. However, it is essential to note that these steps will not immediately change your score. After implementing them, it will take around 6 months to a year for your credit score to improve.
Additional Read: Importance of CIBIL Score For A Personal Loan
How long does it take to improve credit score
Improving your credit score usually takes three to 12 months, depending on your current score, repayment history, and credit habits. Consistently paying dues on time and managing credit responsibly are some of the most effective ways to improve credit score over time.
Action | Expected Improvement | Timeframe |
Pay EMIs and credit card bills on time | Builds a positive repayment history | 3–6 months |
Keep credit utilisation low | Improves credit behaviour | 2–6 months |
Avoid multiple loan applications | Reduces hard inquiries | 3–6 months |
Maintain old credit accounts | Strengthens credit history length | 6–12 months |
If a borrower is looking to improve credit score for a personal loan, maintaining these habits consistently is important. Credit scores do not improve overnight, but steady financial discipline can gradually strengthen the credit profile and improve loan eligibility.
Bajaj Finance brings you pre-approved offers on all of its financial products such as personal loans, business loans, etc. With pre-approved offers, not only is the process of availing of a loan simplified, but it also helps you save on time. You can check your pre-approved offer by simply sharing some basic details.
How long does a credit score update take?
A credit score usually updates within 30 to 45 days after lenders submit the latest repayment and credit usage details to credit bureaus. The update timeline may vary depending on the reporting cycle followed by banks and financial institutions. Maintaining timely EMI payments, keeping credit utilisation low, and avoiding missed dues can help ensure that positive credit behaviour is reflected in your score during the next update cycle.
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