Tips to Improve Cibil Score

1. Pay All EMIs, Bills & Dues On Time, Without Fail

This is perhaps the most powerful tip to improve CIBIL score. Every time you miss or delay an EMI, loan repayment, or credit card due, your negative record gets reported to CIBIL and similar bureaus. Over time, even one or two late payments can drag your score significantly.

• Set up auto-debit / ECS mandates for EMIs

• Use reminders / calendar alerts for credit card dues

• If you anticipate a shortfall, communicate with the lender early to seek restructuring

CIBIL and other credit bureaus put heavy emphasis on payment punctuality in their scoring models. 

At Improve Cibil, we often tell clients: “Paying on time is non-negotiable.”

2. Maintain Low Credit Utilization / Exposure

Using too much of your available credit is seen as a red flag by lenders. A high credit utilization ratio suggests you’re overrelying on borrowed money. One widely recommended guideline is to keep your credit utilization below 30% of your available credit limits. 

For example:

• If your credit card limit is ₹100,000, aim to keep your outstanding balance below ₹30,000

• Avoid maxing out multiple credit cards

• Try to pay off large balances well before the statement date

By keeping utilization low, you show restraint and reduce perceived credit risk.

3. Clear or Reduce Outstanding Debts / Dues

If you have multiple outstanding loans or credit card balance, focus on reducing them. The lower your overall debt burden, the better your chances of increasing your CIBIL score.

• Use surplus cash to pay off smaller or high-interest debts

• If possible, consolidate debts to lower interest burden

• Avoid taking new loans until your existing ones are in better shape

This step not only helps your credit metrics but also makes your monthly finances more manageable.

4. Maintain a Healthy Mix of Credit Types

Having exposure to both secured (e.g. home loan, auto loan) and unsecured (personal loan, credit card) debt demonstrates you can manage different financial obligations responsibly. Lenders view diversified credit mixes favorably.

However, this doesn’t mean taking new loans just for the mix’s sake—it should be done judiciously when needed. 

At Improve Cibil, we recommend using this tip only if you already have stable repayment track records.

5. Limit New Credit Applications & Hard Inquiries

Each time you apply for a loan or credit card, lenders often generate a hard inquiry in your credit record. Excessive hard inquiries within a short span signal desperation or potential risk.

• Avoid applying to many lenders in succession

• Wait for a few months between applications

• Check whether a lender does a “soft pull” (which doesn’t affect the score)

Too many new accounts or inquiries can drag down your score. 

6. Keep Older Accounts Active & in Good Standing

The length of credit history matters. Older accounts with long tenure and good repayment history help your score. If you have a credit card you no longer use, don’t necessarily close it—maintain minimal usage and repay in full each cycle.

Some Reddit users also mention that actively using old credit cards (responsibly) helps maintain credit history length and positive record. 

So unless a card has high fees, letting it remain open is often beneficial.

7. Check Your CIBIL Report Regularly & Correct Errors

A surprising number of people find mistakes or fraudulent entries in their credit report—wrong accounts, duplicates, or wrongly flagged defaults.

• Request your latest credit report (TransUnion CIBIL) once a year

• Check every entry: loans, card accounts, payment history

• If you spot discrepancies, file a dispute with CIBIL

• Follow up until the correction is reflected

Correcting errors is one of the easiest and fastest ways to improve your score. 

At Improve Cibil, we guide our clients step-by-step through this process.

8. Use Credit Products Responsibly (Starter Loans / Small Loans)

If you currently have little or no credit history, securing a small starter loan, or a low-limit credit card, and paying it off diligently can help build positive lines in your profile.

• Keep the amount manageable

• Pay it off fully and on time

• Don’t stretch beyond your means

This establishes payment rhythm and history, which helps signal reliability. 

9. Avoid Being a Guarantor for Risky Borrowers

Sometimes well-meaning people cosign or guarantee loans for friends or family. If such borrowers default, it reflects negatively on your credit record and drags your score down.

• Avoid guaranteeing unless you have full confidence in the borrower

• Understand the potential liability

This tip is often cited in guides such as Standard Chartered’s list of ways to improve CIBIL.

10. Be Patient & Consistent — Credit Healing Takes Time

Improving your CIBIL score is not instantaneous. It often takes months or even a year of disciplined behavior for major shifts to show.

• Track monthly progress

• Stay consistent in behavior

• Resist temptations to take shortcuts

You might see incremental changes, but large jumps usually take sustained effort.