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How Making Minimum Payments can Affect Good CIBIL Score?

A good CIBIL score is a vital indicator of your financial health. Reflecting your credit worthiness, CIBIL or credit score is simply a three-digit number, ranging from a minimum of 300 to a maximum of 900. A score of 750 and above is considered to be in the good CIBIL score range. If you want to avail the best personal loans from any financial institution, it is mandatory to have a good CIBIL score. As CIBIL scores are calculated primarily using your loan and credit card repayment history, even making minimum payments for your credit card can make a huge difference in your overall score.

Report from credit card issuers

  • Your CIBIL score reflects the manner in which you have paid your credit card dues. This is because the credit card issuer sends regular reports to credit bureaus, including Credit Information Bureau (India) Limited(CIBIL), showing the amount of money paid on your outstanding credit card bill.

  • Once you default on your credit card payment, including non-payment of the minimum due amount, it will negatively impact your credit utilisation rate. This rate is calculated on the basis of your credit usage, and reflects the credit limit that you have used. An increase in credit utilisation would result in a low CIBIL score.

  • According to market experts, your ideal credit utilisation rate should be less than 30%. To put it simply, your existing credit card dues should be not more than 30% of your total credit limit. For example, if your total credit card limit is Rs 1 lakh, then the ideal outstanding amount should not be more than Rs 30,000. To have a good CIBIL score range, you must ensure to not increase your credit card balance, while making regular minimum payments.

  • A credit report encompasses key factors, like rating, outstanding amount, payments made, previous outstanding and balance. While rating shows your credit repayment history, the balance reflects your credit utilisation rate. The outstanding amount and its repayments will reflect whether you have repaid the amount within the stipulated time. Any lender will scrutinise your credit report before approving a personal loan. So it becomes imperative to make minimum payments, and have a good CIBIL score range.

  • On Finserv MARKETS, although the required CIBIL score for the best personal loan is 750+, you can avail a loan even when you have a lower credit score. Now you can view your credit report and get customised loan offers, without any impact on your credit score, through a free Credit Health Report on Finserv MARKETS. You are just required to enter the required details, while ensuring that it matches with your Id proofs, and verify your identity by confirming the OTP sent to your mobile number and email id. The whole process is hassle-free, and takes just two minutes.

How does Credit card minimum payment affect CIBIL score?

  • To have a good CIBIL score, it is imperative to make regular payments. Even if you are not able to pay the complete dues, you should make minimum payments, without increasing your credit limit. More than the total payment, what matters most is the consistency in making payments.

  • A recent survey has, however, revealed a shift in behavioural patterns of credit card users. As per the survey, customers making full payments were 63% less likely to default in payments over the next six months. On the other hand, customers who paid the minimum amount were 86% more likely to default in the same six month time-period.

Tips to maintain a good CIBIL score range

Read on to find about the ways in which you can have a good CIBIL score:

  • Timely repayments: Be it EMIs on loans or the minimum due amount of your credit card bill, you must always remember to pay the dues on time. Missing your EMIs and credit card dues will result in imposition of additional charges along with a lower CIBIL score. If you constantly miss the reminders for payments, you can opt for automatic payments through your bank account.

  • Take minimum credit within a given time-period: You must limit the number of loans and purchases from credit cards during a specific time-period. A new loan or fresh purchases via credit card should only be made after settling the previous outstanding amount. Remember, too much credit within a short time can result in a CIBIL score crash. Conversely, repayment within the stipulated time will help you maintain a good CIBIL score.

  • Get the right credit mix: Your outstanding amount should be a mix of both unsecured and secured loans. For instance, rather than availing multiple personal loans, you can choose to have a single unsecured personal loan along with a secured home loan, or a vehicle loan and a credit card.

  • Avoid multiple credit cards: Having multiple credit cards can result in a debt trap, where you can continuously default on payments. It is always better to reduce your credit intake by having a single credit card.

  • Choose loans with longer tenors: Having loans with longer tenors will result in lower EMIs. This will ensure that you are able to make timely payments, and have a good CIBIL score.

  • Monitor your CIBIL score regularly: At times, CIBIL can make mistakes in your credit report. You should report errors, if any, to CIBIL for rectification.


Thus, making minimum payments on your credit card bills can ensure that you have a good CIBIL score. This, in turn, means your personal loan application – for a host of financial requirements, like wedding, travel, home renovation, medical emergency etc. – will be approved instantly. Now you can choose the best personal loan on Finserv MARKETS, which comes with attractive interest rates, flexible repayment tenures, and minimal documentation. What’s more, the best personal loan offers, available on Finserv MARKETS, have simple eligibility conditions, and an approval time of 2 minutes. The amount, up to Rs 25 Lakhs, is disbursed typically within 24 hours.

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