As the year draws to a close, many people set goals to improve their financial health — and one of the most important steps is boosting your CIBIL score.
Your CIBIL (Credit Information Bureau of India Limited) score reflects your creditworthiness — and it determines whether you’ll get approved for a loan, credit card, or mortgage, and at what interest rate.
If your score isn’t where you want it to be, don’t worry — there’s still time. Here’s a practical, five-step guide to help you improve your CIBIL score before year-end and start 2026 with a stronger financial profile.
1️⃣ Pay All Dues On Time — Every Time
Your payment history contributes to nearly 35% of your CIBIL score. Even one missed EMI or credit card bill can lower it.
✅ Action Plan:
Set up auto-debit for all loan EMIs and credit card bills.
Pay the entire amount due — not just the minimum balance.
Clear small overdue amounts that might be lingering unnoticed.
💡 Pro Tip: If you’ve missed payments recently, paying them immediately can still help your score recover within 60–90 days.
2️⃣ Keep Credit Utilization Below 30%
Credit utilization ratio (CUR) is how much of your available credit you’re using.
If you max out your credit cards regularly, lenders view it as a red flag — even if you pay on time.
✅ Action Plan:
Keep usage below 30% of your total credit limit.
Request a limit increase (only if you won’t overspend).
Distribute spending across multiple cards.
💡 Example: If your credit limit is ₹1 lakh, avoid spending more than ₹30,000 monthly.
3️⃣ Check Your CIBIL Report for Errors
Many people lose points due to reporting errors — such as closed loans showing as “active” or incorrect late payments.
✅ Action Plan:
Visit www.cibil.com or any major bureau (Experian, Equifax, CRIF High Mark).
Download your free report once every 12 months.
Dispute inaccurate entries online through the bureau’s “Raise a Dispute” option.
💡 Pro Tip: Once the lender verifies the correction, your score can rise by 30–50 points in as little as 30 days.
4️⃣ Maintain a Healthy Credit Mix
Having only one type of credit — say, multiple credit cards — can limit your score growth. CIBIL rewards borrowers with a balanced credit profile that includes both secured (like home or car loans) and unsecured (like personal loans or cards) products.
✅ Action Plan:
Avoid multiple unsecured loans simultaneously.
If possible, add a small secured credit product (like a fixed-deposit-backed credit card).
💡 Why it matters: A balanced portfolio shows lenders that you can manage different credit types responsibly.
5️⃣ Avoid Too Many Loan Applications
Each time you apply for credit, lenders make a hard inquiry that temporarily reduces your score by a few points.
Multiple applications in a short span signal “credit hunger.”
✅ Action Plan:
Apply for loans only when necessary.
Use soft-check pre-approval tools instead of multiple applications.
Space out loan or card applications by at least 90 days.
💡 Pro Tip: One rejected application can affect others — lenders share inquiry data.
Bonus: Start Using a Credit Builder Loan or Secured Card
If your score is below 650, you can rebuild it using a credit builder loan or a secured credit card (backed by an FD).
These tools report consistent repayments to credit bureaus, helping boost your score over 3–6 months.
✅ Popular Options:
SBI Unnati Card (₹25,000 FD-backed)
Axis Bank Insta Easy Card
Paytm Postpaid or KreditBee builder loans
Score Improvement Timeline (Approx.)
| Action Taken | Expected Improvement | Timeframe |
|---|---|---|
| Pay overdue EMIs & bills | +30 to +50 points | 1–2 months |
| Lower credit utilization | +20 to +40 points | 1 month |
| Correct report errors | +30 to +50 points | 1–2 months |
| Maintain on-time payments | +50+ points | 3–6 months |
Consistent financial discipline can improve your CIBIL score by 80–120 points within 90 days — just in time for year-end financial planning.
Frequently Asked Questions (FAQ)
Q1: What is a good CIBIL score?
A score above 750 is considered good for most loans and credit cards.
Q2: How long does it take to improve a low score?
Usually 2–6 months, depending on how consistently you manage repayments and utilization.
Q3: Does checking my score reduce it?
No — soft inquiries made by you have no impact. Only lender-initiated hard checks do.
Q4: Can I improve my score if I’ve defaulted in the past?
Yes, by clearing dues, settling accounts properly, and maintaining new credit responsibly.
Q5: What’s the best time to review my CIBIL report?
At least twice a year, ideally before applying for a new loan or credit card.
Published on : 10th November
Published by : SMITA
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Source Credit : Written by Personal Finance Desk — NDTV Profit / Credit Insights Division