Building A Healthy Cibil Score

TransUnion CIBIL is a credit information bureau and a credit rating agency that is involved in providing credit scores, also known as CIBIL scores, for individuals. This score is a three-digit number in the range of 300 to 900 and indicates the credit worthiness of an individual. And since this score can essentially either make or break your ability to avail a loan, it is crucial to check your CIBIL score periodically.

That said, what if your score is less than ideal? In that case, don’t worry; there are ways to improve it. If you’re wondering how to improve your CIBIL score immediately, then here are some ways in which you can.      

1.       Pay Your Dues on Time

This is by far the single most important way in which you can improve your CIBIL score. Missing either your credit card payments or your loan EMI payments can bring down your credit score. The opposite is also true. Paying them on time before the due date can elevate your score to a healthy level. Finding it hard to believe? Do this for a few months and check your CIBIL score. 

2.       Ensure That You Have a Good Credit Mix

Having too many unsecured loans can also bring down your CIBIL score. If you’re looking at ways on how to improve your CIBIL score immediately, then ensure that you have a healthy mix of credit options. Having a healthy mix of credit cards, unsecured loans, home loans, and auto loans can help increase your score. 

3.       Refrain from Fully Utilizing Your Credit Limit

If you have a credit card with a spending limit, try not to utilize more than 50{18427eb8f11860eefbdc4109120d3c8363567b9ab3bbd74f8dfe1bf9d20db9c2} of the limit. Using the card till you reach the limit is generally viewed unfavourably and can bring your score down. However, by consistently having your credit utilization below 50{18427eb8f11860eefbdc4109120d3c8363567b9ab3bbd74f8dfe1bf9d20db9c2}, you can ensure an increase in your CIBIL score.

4.       Keep Your Old Credit Cards

When credit information bureaus such as CIBIL calculate your credit score, they tend to take a look at your credit history. Having a long credit history adds to your score. And one way to build a long credit history is by retaining your old credit cards. The longer you possess a credit card, the better your credit score is likely to be. So, the next time you’re tempted to discontinue your old credit cards, think of this.

5.       Avoid Taking Too Many Loans

When you apply for loans, lending institutions will typically check your CIBIL score. These checks are known as hard checks. Doing too many hard checks in a short period of time can also lead to a decline in your credit score. So, keep this in mind when looking for ways on how to improve your CIBIL score immediately. Don’t take more loans than what’s necessary


Following these 5 tips as outlined above is sure to help you build a healthy CIBIL score in no time. All of this talk about credit scores making you want to check your CIBIL score? If that’s the case, visit Finserv MARKETS right away. You can get to know your score within just a few minutes. That’s not all. You can also learn all about credit scores and its importance as well.