Get your Free Credit Score Report Online Instantly. Check Your CIBIL

In today's world, the significance of a CIBIL score has never been higher. 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. This article delves into key questions such as "how to boost your CIBIL score" and "effective strategies for maintaining a healthy credit report." Read on to gain a hassle-free understanding on how to increase your CIBIL Score.

How to Improve or Increase Your CIBIL Score?

  • Missing EMIs/due dates
  • High credit utilisation ratio

  • Unhealthy mix of secured and unsecured Credit


1. Missing EMIs/Due Dates

Missing EMI payments or due dates can lead to a low CIBIL Score. To maintain a positive credit score, it is crucial to make consistent and timely payments for your EMIs, credit card bills, etc.

2. High Credit Utilisation Ratio

A low CIBIL score can also result from a high credit utilisation ratio, which shows that you have a low percentage of credit available to you. It is always advisable to maintain a lower ratio to prevent negative effects on your CIBIL score.

3. Unhealthy mix of Secured and Unsecured Credit

Low CIBIL scores often result from an imbalanced mix of secured and unsecured credit. Having a healthy blend of both loan types can positively influence your overall credit report. Multiple unsecured loans can be a reason for a low CIBIL score, creating an impression of limited collateral. This can make you appear as credit-unworthy to lenders.

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

To sustain a positive CIBIL score, it is essential to keep the number of credit advancements to a minimum. Applying for multiple loans or consistently approaching the maximum limit on your credit cards signals credit-hungry behaviour and can dip your score. Avoid unnecessary loans while keeping credit card usage moderate, ideally below 30% of the credit limit. However, remember that a complete abstention from credit card usage can also have a negative impact on your credit rating.

2. Watch out for Joint Applicants

Maintain a healthy CIBIL score by staying vigilant about loan applications of individuals sharing a joint bank account with you. In a scenario where the joint applicant defaults on a loan, it can implicate you, even if you maintain a clean credit history. This will reflect in your report as well and your CIBIL Score will be impacted. To avoid this risk, prioritise timely payments on joint accounts and minimise the frequency of joint loan applications.

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

If you're still wondering "How to maintain CIBIL Score", remember to avoid applying for a loan from a lender that has already rejected your application. Moreover, avoid immediately reapplying with a different lender, as all details of your rejected applications go into CIBIL's records. Frequent rejections not only signal credit-hungry behaviour but also harm your CIBIL Score. When you apply with a different lender, they will surely pull up your credit report and see that your last loan application was rejected. Hence, it is advisable to wait and try to improve your credit score first. 

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. Therefore, it is 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. Improving your CIBIL Score usually takes anywhere from 4-12 months depending on your situation. 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 credit score rebuilding with regard to the various financial circumstances, according to studies done by CNBC and FICO. 



Average credit score recovery time


7-10 years

Home foreclosure

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 CIBIL Score, use these tips to improve your CIBIL score and enjoy the numerous 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 effortless 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.

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.

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

Loan Offer
Download App
Credit Score