5 Smart Ways to Improve Your CIBIL Score Quickly
A good credit score is your gateway to quick loan approvals and lower interest rates. In India, a CIBIL score of 750 or above is considered excellent by most banks and NBFCs. If your score is currently below this mark, don't worry. Here are 5 smart, actionable strategies to improve your CIBIL score quickly:
Pay All Dues on Time: Your payment history makes up the largest part of your credit score. Set up autopay or reminders for all credit card bills and loan EMIs. Even a single day's delay can negatively impact your score.
Reduce Credit Utilization Ratio (CUR): Keep your credit card spending below 30% of your total limit. If your limit is ₹1 Lakh, try not to spend more than ₹30,000 in a billing cycle. High utilization signals credit hunger to lenders.
Rectify Errors on Your Credit Report: Check your credit report regularly for inaccuracies (such as open accounts that you have already closed, or incorrect payment history). Raise a dispute on the official CIBIL portal to correct these errors.
Maintain a Mix of Credit: A healthy mix of secured loans (like a car or home loan) and unsecured loans (like a personal loan or credit card) shows that you are experienced in handling different types of credit.
Avoid Multiple Credit Inquiries: Every time you apply for a loan or credit card, the lender makes a hard inquiry on your report, which temporarily dips your score. Avoid applying to multiple banks simultaneously; instead, use a platform like RupeLoan to check eligibility without multiple hard hits.