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As individuals seek financing for various purposes like business ventures, medical expenses, or home management, understanding how to enhance and maintain their CIBIL score becomes crucial. Know more about the effective ways to boost your CIBIL score and maintain a healthy credit report.

10 Smart Tips to Improve Your CIBIL Score

Here are 10 ways that you can adopt to improve your CIBIL score:

  • Diversify your credit portfolio

  • Avoid settling your loans and/or credit cards

  • Limit the frequency of loan applications

  • Monitor your credit report

  • Opt for a healthy credit mix

  • Reduce credit risks

  • Request higher credit limits

  • Maintain old credit cards

  • Limit credit inquiries

  • Be consistent and patient


1. Diversify Your Credit Portfolio

Strive for a balanced mix of secured and unsecured debts. Relying on unsecured loans too much may raise concerns for lenders, potentially impacting your CIBIL score.


2. Avoid Settlements

Opting for settlements on loans or credit cards can harm your CIBIL score. While settling allows you to close debts for less than the actual amount, it leaves a lasting negative mark on your credit report, affecting future credit opportunities.


3. Limit Frequency of Loan Applications

Limit the frequency of loan applications to maintain a healthy CIBIL score. Multiple inquiries, especially in a short period, can label you as credit-hungry, potentially lowering your creditworthiness.


4. Monitor Your Credit Report

Regularly review your credit report for errors or inconsistencies. Promptly rectify any inaccuracies to ensure an accurate reflection of your credit history.


5. Opt for a Healthy Credit Mix

Aim for a mix of secured and unsecured loans to enhance your credit history. This diversity showcases your ability to manage various credit repayments, positively impacting your CIBIL score.


6. Reduce Credit Risks

Demonstrate financial stability by consistently making timely credit card payments and avoiding lower-than-due payments. This highlights responsibility and reduces the risk associated with your credit profile.


7. Request Higher Credit Limits

If needed, request a higher credit limit to maintain a healthy credit utilisation ratio. This responsible credit management can positively influence your CIBIL score.


8. Maintain Old Credit Cards

Keep your old credit cards active, even if not in use. This displays a positive credit history, contributing to a higher CIBIL score over time.


9. Limit Credit Inquiries

Minimise hard inquiries by avoiding frequent applications for new credit lines. Excessive inquiries in a short span can adversely affect your CIBIL score.


10. Patience and Consistency

Understand that improving your CIBIL score is a gradual process. Stay patient, be consistent in your efforts, and regularly monitor your financial actions and CIBIL score for disciplined financial management.


Now that you have understood how to improve your CIBIL score, let us look at some common factors that have a negative impact on your scores.

How Long Does It Take to Improve CIBIL Score?

It can take 6 months to several years to improve your CIBIL score. However, the time required depends on your unique circumstances such as financial habits, the initial cause for the low score and your current CIBIL score. Therefore, it is crucial that you opt for a sustained and holistic approach to your credit score rebuilding exercise.


While there is no fixed timeline for improving your CIBIL score, it’s important to remember that the lower your score is, the longer it will take you to improve your CIBIL score. Generally, a score of 750 and above is recommended to have a good chance of qualifying for loans. If your score is on the lower end and less than 600, then it will naturally take a while to increase.  


Here is a table showing an estimated timeline for CIBIL score rebuilding with regard to the various financial circumstances:


Average CIBIL score recovery time


7-10 years 


3-7 years 

Defaulted or missed payment

18 months 

Late mortgage payment (30 to 90 days)

9 months 

Closing credit card account

3 months 

Maxed credit card account 

3 months 

Applying for a new credit card

3 months 

Now that you are aware of how to increase your CIBIL Score, use these tips to improve your score and enjoy the numerous benefits associated with a higher score. Having a good score makes it possible for you to secure a loan at better deals and terms.

FAQs on How To Improve CIBIL Score

Do late payments and high utilisation of credit limits have a negative effect on your score?

Yes, they leave a negative impact on your CIBIL score. This is because late payments and high credit utilisation ratios are some of the telltale signs of being financially unstable, which could diminish the individual’s creditworthiness.

How long does it take to improve your CIBIL score?

Increasing your CIBIL score can take anywhere between 6 months and 10 years. However, employing effective strategies like making timely repayments and reducing your credit utilisation ratio can help you build your score faster.

Is the CIBIL score updated daily?

The CIBIL score is not updated daily. Credit bureaus typically update the report once a month. To check the same, it is essential to follow your CIBIL report updates.

How to improve your CIBIL score without a credit card?

Here are the ways to enhance your CIBIL score:

  • Check your credit report regularly for updates

  • Raise requests to resolve the errors in your report

  • Assess and reduce your credit utilisation ratio 

  • Pay your loans on time 

  • Clear your outstanding bills

How can I increase my CIBIL score quickly?

You can build your CIBIL score quickly with ease through the following ways:

  • Diversify your credit portfolio 

  • Avoid loan and/or credit card settlements 

  • Limit the number of loan and credit card applications

  • Monitor your credit report regularly

  • Make timely repayments

  • Reduce the credit utilisation limit


Reach out to a professional and seek consultation to get a better understanding of how to rapidly improve your CIBIL score.

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