A strong CIBIL score is more than just a number; it’s the path to your financial freedom and stability. Many individuals often find themselves confused when facing rejection of a personal loan or credit card. The culprit? A less-than-ideal CIBIL score. Having a low CIBIL score can thus make it difficult to avail credit for your needs. 

This article contains information about how to increase your CIBIL score, highlighting ten proven strategies to uplift your creditworthiness.

Understanding Your CIBIL Score for Your Creditworthiness

Before delving into the strategies and knowing how to increase your CIBIL score, it’s important to understand what a CIBIL score is and why it holds such significance in the financial world. 

Your CIBIL score is a numerical representation of your credit history and health. Ranging from 300 to 900, this score is a summary of how well you’ve managed your loans and credit cards.

It’s derived from your credit report, which is a detailed record of your credit history, including your borrowing and repayment habits. 

A high CIBIL score suggests to lenders that you are a low-risk borrower, increasing your chances of loan approval with favourable terms and interest rates. 

Alternatively, a low score can limit your access to credit or lead to less favourable loan conditions. Understanding this score’s influence on your financial opportunities is the first step toward effective credit management and improvement.

Top 10 Strategies You Need to Make the Most Of

Embarking on the journey to increase your CIBIL score, it’s important to know a few well-crafted strategies. These are not just quick fixes but are fundamental practices that can reshape your approach to credit and borrowing. 

The importance of a good CIBIL score cannot be overstated in today’s financial ecosystem, where it plays an important role in determining your creditworthiness. Let’s check them out:

  • Regularly Monitor Your Credit Report

The first step in managing your credit score is understanding what affects it. Regularly monitoring your credit report is important in keeping track of your financial activities and ensuring their accuracy. 

This habit helps identify and correct errors and gives you a clear picture of where you stand in terms of credit health. Mistakes, no matter how small, can drag down your score.

  • Timely Payment of EMIs and Credit Card Bills

Timely payments are the bottom line of a good CIBIL score. Delayed or missed payments are red flags for lenders and can greatly harm your credit score. 

Establishing a routine of prompt payments shows your reliability as a borrower, which is a key factor in credit assessment. Consistently pay your EMIs and credit card bills on time. Late payments negatively impact your score.

  • Maintain a Healthy Credit Utilisation Ratio

How much credit you use regularly, as opposed to how much you have available, is an important factor in determining your credit score. 

Maintaining a low credit utilisation ratio indicates good credit management and financial discipline, making you a more attractive prospect to lenders. 

Aim to keep your credit card utilisation below 30% of your limit. High utilisation suggests dependency on credit, which is a red flag for lenders.

  • Avoid Multiple Loan or Credit Card Applications Simultaneously

Applying for several credit facilities in a short span can create a negative impression on lenders. It can be seen as financial distress or mismanagement. 

Careful financial behaviour involves carefully considering and selecting credit facilities based on your actual needs and repayment capability. 


Applying for several loans or cards at once can make you appear credit-hungry, leading to a lower score.

  • Length of Credit History Matters

A longstanding credit history, with a record of timely repayments, can significantly affect your credit score.

It provides lenders with a longer window to assess your credit behaviour, thereby enhancing your credibility. 


A long history of responsible credit usage is beneficial. Avoid closing old credit cards as they contribute to your credit history.

  • Mix of Credit Is Advantageous

A diversified credit portfolio comprising different types of credit shows your ability to manage various credit lines effectively. This balance can positively influence your CIBIL score, as it reflects responsible and varied credit usage. Having a mix of secured loans (like home loans) and unsecured loans (like credit cards) can be helpful.

  • Limit Your Loan Guarantees

Being a guarantor for someone else’s loan is good, but it comes with its own risks. If the primary borrower defaults, it not only affects them but also impacts your credit score.

It’s important to understand these things before agreeing to be a guarantor. Acting as a loan guarantor can impact your score if the primary borrower defaults.

  • Increase Credit Limit Wisely

A higher credit limit can improve your credit utilisation ratio but also requires disciplined spending. 

The idea is to access more credit while not increasing your expenditures, demonstrating your creditworthiness without adding any new debt. 

Accepting higher credit limits can be beneficial, provided you do not increase your spending proportionately.

  • Settle Outstanding Debts

Clearing your debts is an easy way to improve your credit score. It reduces your overall debt burden and shows your commitment to being financially responsible. Prioritise paying off high-interest debts first to make a more significant impact. Work towards paying off existing debts rather than just moving them around.

10. Don’t Close Unused Credit Cards

Contrary to common belief, closing unused credit cards can actually hurt your credit score. 

These cards contribute to your total available credit and credit history length, both important factors in your credit score calculation. 

Closing old, unused credit cards can shorten your credit history, negatively impacting your score.

Taking Control of Your Credit Health

Improving your CIBIL score is a journey that requires regular and thorough financial discipline. Following these tips can gradually enhance your personal loan eligibility and pave the way for a more secure financial future. Remember, a high CIBIL score opens doors to better loan terms and interest rates, making it worthwhile to nurture and improve it.