The journey to a robust CIBIL score is akin to a cricket match, where every run counts and no aspect can be overlooked. It’s not just about timely repayments but also about a holistic approach to handling credit. With a low credit utilisation ratio, long and responsible credit history, diverse credit mix, limited credit inquiries, and prudent decisions about co-signing or guaranteeing loans, you can indeed become the master of your financial destiny. Click on the article to read more.

In today’s world, your financial reputation holds significant importance. One important aspect that lenders and financial institutions consider is your CIBIL score. It is a three-digit number which has a big impact on your financial journey, especially when you want to borrow money. Today, there are several platforms available to check your Online CIBIL score and you can also download CIBIL reports from them. It gives you a clear picture of your credit health.

But there are several other factors that influence your CIBIL score. Let’s explore further and discover the other things that affect your CIBIL score.

Other Factors that Influence Your CIBIL Score  

It is advisable to get your CIBIL Score checked as it’s not just about timely payments of loans; it’s also about how you handle your credit overall.

Here are some of the less-known factors:

  • The ratio of Credit Utilisation: It measures the proportion of your overall credit limit that you’ve spent. For instance, you have a credit card with a limit of Rs 1,00,000. If you’ve spent Rs 30,000, your ratio of credit utilisation is 30%.
  • Tenure of Credit History: The length of time you’ve had credit can have an impact on your score. The longer you’ve effectively handled your credit, the more it positively affects your score.
  • Rate of New Credit Applications: Persistently seeking new credit can raise a cautionary signal for lenders, possibly indicating financial urge and, subsequently, casting a negative impact on your CIBIL score.
  • Endorsed or Assured Loans: In case of endorsed or assured loans, any default committed by the primary borrower could adversely affect your CIBIL score.

Exploring Each Factor in Detail

The CIBIL score has multiple factors that you need to know. Let’s explore each of them in detail:

Understanding Credit Utilisation Ratio:

You should not overspend with a credit card. Usually, people think it is additional money. But it is important to understand that you have to repay it later. In this regard, smart credit utilisation is important. You should avoid reaching the maximum limit of your credit card and ensure maintaining a good credit utilisation ratio.

The Influence of a Diverse Credit Portfolio:

Having a mix of secured (like Home and Auto Loans) and unsecured loans (like credit card debt and Personal Loans) can show lenders that you can handle various types of credit responsibly.

  • How Frequent Credit Inquiries Can Affect Your CIBIL Score: Regularly applying for new credit can be perceived negatively by lenders. Instead, you can manage the existing credits effectively and improve your score.

Effective Strategies to Improve Each Aspect

Here are some effective strategies to address each aspect of your CIBIL score:

●   Maintaining an Optimal Credit Utilisation Ratio: Ideally, try to keep your ratio below 30%.

●   Establishing a Strong Credit History: Start building your credit history early so that it may help you when applying for a new credit products.

●   Diversifying your Credit Mix: A healthy mix of credit types can contribute positively to your CIBIL score.

●   Considerations before Co-signing or Guaranteeing a Loan: Be cautious about whose loan you guarantee or co-sign.


It’s clear that your CIBIL score is more than just a reflection of your payment history. It takes into account various aspects of your financial behaviour. From the length of your credit history to your credit utilisation ratio, these factors all play a role in shaping your score. By understanding your CIBIL score, you gain valuable insights into maintaining a healthy financial profile. Remember to keep exploring and learning about these factors to improve CIBIL score and pave the way for a better financial future.