How to Improve Your CIBIL Score: 7 Practical Habits
A CIBIL Score is a three-digit summary of credit history that ranges from 300 to 900. TransUnion CIBIL says the score is based on information such as payment history, credit utilisation, age of credit and enquiries. A higher score can improve the chances of being considered favourably by lenders, but lenders use their own underwriting criteria too.
1. Pay every EMI and card bill on time
Payment history is a major part of your credit profile. Set reminders or automated payments, while keeping enough balance to avoid failed payments.
2. Watch credit-card utilisation
Using a very large share of available revolving credit can be a negative signal. Try to manage balances comfortably within your limits rather than repeatedly spending close to the maximum.
3. Avoid unnecessary loan and card applications
Hard enquiries are recorded when lenders check your report for applications. Apply when you genuinely need credit rather than submitting many applications simply to compare offers.
4. Keep old, well-managed accounts in perspective
Credit history length can matter. Do not close an old account solely because you no longer use it without considering its effect on your overall credit profile and the lender's terms.
5. Check your credit report for errors
Review account details, payment status and enquiries. If you find an error, use the relevant dispute process rather than assuming the score will correct itself.
6. Reduce expensive revolving debt
Paying down high-interest balances can improve your financial position even if the score does not change immediately. Focus on sustainable repayment rather than short-term score hacks.
7. Give the report time to update
Credit improvements are not always instant. Lenders report information periodically, so continue good habits and monitor the report over time.
Need help applying this to your situation?
Use GroMoney Capital's calculators and service pages, then speak with the team for product-specific assistance.
Contact GroMoney CapitalEducational content only. Financial products, insurance policies, taxes, credit decisions and returns are subject to applicable laws, product terms and individual circumstances. This article is not a guarantee of approval, returns or claim settlement.