Smart tips to improve your CIBIL Score

Your CIBIL score is really important when lenders are deciding whether to give you a loan or not. While it's possible to get a loan with a low CIBIL score, it's much better to improve it first. Why? Because a good CIBIL score helps you get a personal loan approved faster and at lower interest rates. You'll pay less money overall. To know where you stand you can check your CIBIL Score and see your credit profile. Even better, check if you already have a pre-approved loan offer and see the exact interest rate you are offered.

So, here are five practical ways to boost your CIBIL score and improve your chances of getting better loan offers

Before we dive into the five tips, let's understand what makes a "good" credit score. You can consider a good CIBIL score to be around 650 or above. This score tells banks and lenders that you have strong credit habits. It shows them you're responsible with money and likely to pay back loans on time. With a score of 650 or higher, you have much better chances of getting loans approved quickly and at lower interest rates.

If you're wondering how to increase your CIBIL score or how to improve it, here's what you need to focus on: make all your payments on time, keep your credit card usage low, avoid applying for multiple loans at once, and regularly check your credit report for mistakes. These habits will steadily improve your score over time.

As you work on improving your CIBIL score, keep these points in mind:

• Avoid ad-hoc financial decisions: Don't make sudden, unplanned financial moves like taking multiple loans quickly. Always try to take and use credit responsibly to maintain a good CIBIL credit score.
• Use credit responsibly: Always try to take and use credit wisely. Borrow only what you need and can repay comfortably.
• Be patient with the process: Once you start implementing these measures, remember that it may take around 6 months to a year for your score to show noticeable improvement. Improvement happens gradually, so stay consistent.

Here's an important question: how fast can you improve your CIBIL score? The answer is: it depends on your current situation and how consistently you follow these tips.

Improving your CIBIL score is a gradual process and may take anywhere from 3 to 6 months or more, depending on your credit behaviour. If you want to increase your CIBIL score fast, here's what to prioritise:

• Make all your EMI payments on time – this is the most important factor
• Reduce any outstanding debt as quickly as possible
• Avoid applying for new credit applications frequently
• Keep your credit utilisation ratio low

⏱️ Timeline tip: Consistent positive actions can help speed up improvement. Some people see improvement in 3 months, while others take 6 months or longer. The key is being consistent and patient.

Your CIBIL score plays a vital role when applying for a personal loan, as it reflects your creditworthiness. A high score increases your chances of getting a personal loan approved, often with better interest rates and more favourable terms. On the other hand, a low score may reduce your approval chances or lead to higher borrowing costs that cost you much more money over time.

If you're wondering how to increase your credit score for a personal loan, start right now by following these five steps: pay your EMIs and credit card bills on time, clear your outstanding debt, maintain a healthy credit mix, keep your credit utilisation low, and check your credit report regularly for discrepancies. Taking these steps will improve your financial profile and help you qualify for better loan offers when you need them.

Remember, building a good CIBIL score takes time and effort, but it's absolutely worth it. Better scores mean lower interest rates, which saves you thousands of rupees over the life of your loan. Start implementing these strategies today, and in a few months, you'll see improvement. Once your score improves, you'll be in a much stronger position to get a personal loan approved quickly and at the best rates available.