Why Your CIBIL Score Matters
Your CIBIL score (ranging 300-900) determines your loan eligibility and interest rate. A score above 750 gets you the best rates. Below 650, most banks reject your application.
10 Tips to Improve Your CIBIL Score
- Pay EMIs on time: Payment history is 35% of your score. Never miss a due date.
- Keep credit utilization below 30%: If your credit card limit is ?1 lakh, spend max ?30,000.
- Don't close old credit cards: Old accounts show credit history length.
- Limit new credit applications: Multiple hard inquiries hurt your score.
- Check your credit report for errors: Dispute wrong entries with CIBIL.
- Maintain a credit mix: Have both secured and unsecured loans.
- Become an authorized user: Being added to a family member's account can help.
- Request a credit limit increase: Lower utilization ratio improves score.
- Pay outstanding dues: Settle all overdue amounts immediately.
- Be patient: Score improvement takes 3-6 months of consistent good behavior.