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A CIBIL score, due to the times that we live in currently, has now gained more importance than ever. Everybody is attempting to secure finances from a myriad of sources due to reasons such as starting a business, re-establishing a business, paying hospital bills or simply managing homes through loans.


So, in order to be able to get loans in a hassle-free manner, one is required to know the answers to questions such as “How to increase CIBIL score” and “How to maintain the CIBIL scores that I see on my credit reports?”. This article will essentially teach you how to improve your CIBIL score, how to maintain the CIBIL score that you see on your credit reports and take you through the actions that can be counted as a reason for low CIBIL scores as well, among other functions. Read on to know how to increase your CIBIL scores.

How to Improve or Increase Your CIBIL Score?

  • Maintain a healthy credit portfolio ratio between secured and unsecured debts

  • Do not, under any circumstance, settle loans and/or credit cards

  • Keep the frequency of loan applications low

  • Evaluate your Credit Report

  • Opt for a Healthy Credit Mix

  • Avoid any Hint of Risk

  • Request Higher Credit Limits

  • Maintain Old Debt Records

  • Keep Multiple Credit Lines at Bay

  • Stay Consistent

1. Maintain a healthy credit portfolio ratio between secured and unsecured debts

Loans are essentially of two types, namely secured and unsecured loans. If a borrower takes on way too many unsecured forms of loans, banks and financial institutions alike tend to see it as a red flag and might even be inclined towards declining your loan application upfront and without a second thought. In order to avoid such a scenario, a borrower can take unsecured as well as secured loans, such as the ones for cars or homes, which is one of the ways in which they can learn how to maintain CIBIL scores going forward. It must also be noted that Credit Cards also count as a form of unsecured credit advance.

2. Do not, under any circumstance, settle loans and/or credit cards

Credit Card or Loan Settlements do not do any favours for an individual’s CIBIL score. What settling a loan or credit card essentially means is that the borrower approaches their bank and then asks for a deal, and of the kind that will allow them to close the debt for an amount that is lower than what is actually due. Banks do entertain such requests at times, but the settlement agreement which has gone through eventually leaves a mark on the credit report and it eventually ends up having a negative effect on the score or a bank's willingness to offer fresh credit to them.

3. Keep the frequency of loan applications low

Third in the list of things that can be counted as an answer to the question “How to improve your CIBIL score?” is maintaining a low frequency of the number of applications a borrower  must fill up and send to lenders, as credit bureaus such as CIBIL make a note of those things too. Additionally, the representative of the lender is obligated to pull up your credit reports, and such enquiries are recorded by the likes of CIBIL too. Such enquiries by a bank can also cause one’s CIBIL score to come down as well. Such actions have yet another repercussions as well. The first being that you will be tagged as a credit hungry person, and the second one will be that your score comes down fairly significantly, even if you have every intention and the capability of paying back the credit in a timely manner. So, if you want to learn how to increase your CIBIL score, you must learn to do things that will prevent it from getting bad as well.

4. Evaluate your Credit Report

Errors in the credit report have been widely reported, proving that it is a common occurrence. This is why it is important to keep a check on any possible errors in the report. Check your credit report regularly for inconsistencies. Bajaj Markets lets you avail a free credit health report. The health report will help you trace any incorrect information, delays in updating the changes and more. If you spot errors, get them reported and rectified instantly.

5. Opt for a Healthy Credit Mix

Credit should always be obtained wisely. Experts advise getting a credit mix of different kinds in the form of unsecured and secured loans. This can aid in improving your credit history as you effectively serve a wide range of credit repayments. It can increase your CIBIL score to bring you better credit opportunities.

6. Avoid any Hint of Risk

The credit report immediately picks out risks in a borrower’s profile. Be sure to never miss out on credit card payments, making lower payments on the total due and more. These are signs that portray a stretched cash flow and are the first signs of stress in your credit profile.

7. Request Higher Credit Limits

If you feel like you require more credit, then it is wise to get a higher credit limit. This way you can maintain your credit utilisation while availing higher credit opportunities. You can in turn increase your CIBIL score.

8. Maintain Old Debt Records

The CIBIL score is based on your credit behaviour from the past. This is why you must maintain a history of your loan accounts for your CIBIL score. You should also keep your old accounts active, even if you do not use them. As long as you have a solid repayment history, keep the historical record for as long as you can.

9. Keep Multiple Credit Lines at Bay

Every time you apply for a new credit line, the lender assesses your credit report. This check is known as a hard inquiry. It renders a detailed analysis of the credit profile to portray the risk you carry. Too many hard inquiries within a short span of time can have a very negative impact on your CIBIL score and lead to a deep dip.

10. Stay Consistent

The CIBIL score cannot be improved over a short span of time. It demands effort over a long period. Thus, you must be patient when working towards improving your CIBIL score. Stay consistent with your efforts and monitor your actions over time. Check your CIBIL score regularly to stay disciplined with regards to your finances.

Now that you have understood how to improve your CIBIL score, let us take a look at the standard practices which are followed by borrowers in order to amplify their CIBIL scores. Read on to know more.

Reasons for low CIBIL Scores

  • Missing EMIs/Due Dates

  • High Credit Utilisation Ratio

  • An Unhealthy mix of Secured and Unsecured Credit

1. Missing EMIs/Due Dates

One reason for low CIBIL scores is the act of missing EMI payment due dates. Ergo, it is very important to pay your EMIs and credit cards bills on or before the due date to maintain a good credit score.

2. High Credit Utilisation Ratio

Another reason for low CIBIL score is the low percentage of the credit limit available to a creditor at a given point of time, which implies a credit utilisation ratio. It is recommended by many that a borrower should never have a high credit utilisation ratio, as it eventually has a negative impact on one’s CIBIL scores.

3. An Unhealthy mix of Secured and Unsecured Credit

Third reason for low CIBIL scores is the inability to strike a balance between the kinds of credit one applies for. It is advised that individuals have a healthy mix of both secured as well as unsecured loans in order to positively impact their overall credit report. It is believed that multiple unsecured loans is counted as a reason for low CIBIL score. It is also a known fact that a high number of unsecured loans gives the lender the impression that he does not have the ability to offer anything as collateral for them. This eventually brands him or her as a credit unworthy individual in the mind of the official representing the lending institution.


Now that you have understood as to what could be the reason/reasons for low CIBIL scores, let us take a look at the answers to the question “How to maintain CIBIL scores going forward?”. Read on to know more.

How to Maintain a Good CIBIL Score?

  • Keep the Borrowing to a Minimum

  • Watch Out for Joint Applicants

  • Don’t Keep Applying for Credit if you Have Been Rejected

1. Keep the Borrowing to a Minimum

One answer to the question “How to Maintain CIBIL scores?” is that at any given point in time, the number of credit advancements that have been taken on by an individual must be at a bare minimum. If one is applying for way too many loans or is always close to the maximum limit of their credit cards, then their score is likely to come down as such activities tend to be an indication of credit hungry behaviour. The best thing to do is to not to take a loan until unless it is absolutely necessary. In addition to the same, one must make sure that they do not come close to their credit limits on their cards.


You should keep your credit use modest since utilising more than 30% of your credit limit is regarded as high credit utilisation. However, not using your credit card will affect your credit rating. Thus, you should definitely use your credit card but do so wisely. 

2. Watch out for Joint Applicants

Secondly, one of the ways in which one can maintain a healthy CIBIL score is by keeping an eye out for such loan applications which could be made by the person who jointly holds a bank account with you. Such is actually a situation where one could suffer even if you are not at fault. In such a scenario, if the borrower is a joint applicant for a loan which has been taken by someone else, and if they end up defaulting on their payment, then the prospective borrower with a clean credit history too can get implicated as they will also lose out in their CIBIL score as it will reflect in their report as well. The best way to avoid this is to ensure that the loans and cards are being paid for on time and loans applied for through joint accounts are anywhere between negligible to zero.

3. Don’t Keep Applying for Credit if you Have Been Rejected 

Yet another answer to the question  “How to maintain CIBIL scores?” is that a borrower must not try to pick up a loan from a lender even though they have rejected the application for the same once already. If they have applied for a loan or a credit card once and have already been turned down, that information goes into the records of CIBIL. 


The high frequency of loan applications being filled and submitted is also an indication of credit hungry behaviour. Also, if they go and apply to another bank almost immediately, the first thing they will most likely do is pull up your credit report, which will contain a note concerning the last loan application that was rejected. The best thing to do in such cases is to not apply again and wait for the score to improve after they have performed the aforementioned activities.


It must also be noted that your CIBIL score is one of the most important factors that determine your creditworthiness, especially when availing a loan. A good CIBIL score will make your loan application process simpler and quicker. It is advisable to have your CIBIL score checked, before applying for the loan application. This is because if the CIBIL score is less, you can work towards improving it, which will increase your chances of loan approval. 


To improve CIBIL score it usually takes anywhere from 4-12 months depending on your situation. Generally, CIBIL score above 750 is recommended. If your score is on the lower end and less than 600, then it will naturally take a while to increase your CIBIL score to 750.


Now that you’re well aware of how to increase CIBIL Score, use these tips to improve your CIBIL score and enjoy the various benefits associated with a higher score. Having a good CIBIL score makes it possible for you to avail a loan and get a better deal from a bank. 


With Bajaj Markets, you can avail a loan and enjoy a myriad of offers. The portal also has features such as personalised pre-approved offers, instant approval, and quick disbursal of loans. Another simple way of checking your CIBIL score for free is to get your customised Credit Health Report on Bajaj Markets, which will provide your CIBIL score for free.


How Long Does it Take to Improve Credit Score?

A poor credit score can be a cause for concern as it affects your ability to avail loans. It can take anywhere between six months to several years to improve a credit score. However, the time required for improving your credit score depends on your unique circumstances such as financial habits, the initial cause for the low score and your current credit score. 

Improving your credit score can take some time and hence, requires a lot of patience. This is why it’s crucial that you opt for a sustained and holistic approach to your credit score rebuilding exercise, rather than looking for shortcuts.


While there is no fixed timeline for improving your credit score, it’s important to remember that the lower your credit score is, the longer it will take you to improve your credit score.  Generally, a credit score of 750  and above is recommended to have a good chance at qualifying for loans.


Here’s a table showing an estimated timeline for credit score rebuilding with regard to various financial circumstances, according to studies done by CNBC and FICO. 


Average credit score recovery time


6+ years

Home foreclosure

3 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

Having a good credit score is crucial to your financial wellbeing. However, mending a poor credit score often takes time and requires a lot of patience. Additionally, it’s also important to start early and take a holistic approach to improving your credit score.

FAQs on How To Improve CIBIL Score

Yes, they indeed leave a not-so-positive mark on your CIBIL score. It is considered to do so as late payments and high credit utilisation ratios are some of the telltale signs of being on rocky grounds, financially speaking, which could diminish the individual’s creditworthiness. One must always be on the lookout for such metrics.

You can raise your CIBIL score in 30 days by following below tips:


  • Make a big debt payment.

  • Reduce your credit card statement balance.

  • Become an authorised user.

  • Ask for a higher credit limit.

For most people, increasing a CIBIL score by 100 points in a month isn't going to happen but if you pay your bills on time, eliminate your debt, don't run large balances on your cards and maintain a mix of both consumer and secured borrowing, an increase in your credit could happen within months.

The CIBIL score is not updated daily. Credit bureaus typically update the report once a month. To check the same, you would need to wait and follow your CIBIL report. Credit scores from CIBIL are not updated in real time.

Here are the ways to enhance your CIBIL score.


  • Check your credit report

  • Make corrections to errors

  • Assess your credit utilisation ratio

  • Pay your loans timely

  • Clear your outstanding bills

Below are the methods to increase your CIBIL score: 


  • Repay your credit card bills on time

  • Limit your credit utilisation

  • Keep a check on your credit report

  • Opt for different credit cards

  • Increase your credit limits

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