Published on May 29, 2025Updated on Oct 14, 2026
A CIBIL score is a three-digit number ranging from 300 to 900 that reflects your credit history and repayment behaviour. It summarises your outstanding debts, credit usage, and repayment discipline. As such, financial institutions often consider CIBIL scores for personal loan eligibility, along with factors like income, employment status, and age.
A high CIBIL score (typically 750 or above) improves your chances of loan approval and may help you access favourable interest rates. But the key question is: How to raise your CIBIL score?
In this article, we outline the best practices to increase your CIBIL score.
Your CIBIL scores and creditworthiness go hand in hand. Hence, it’s important to check and improve your scores before applying for personal loans. Here are some steps to increase your CIBIL score:
Even a single missed or delayed payment can dent your CIBIL score. Hence, the first step to improve your score is to set up reminders or an auto-payment process to prevent misses on your EMI or credit card dues.
A consistent history of full, timely payments on your credit cards reflects positively on your credit profile. If you’ve missed payments in the past, steady on-time payments going forward can help rebuild your score.
Checking and understanding your CIBIL report and score is a good financial habit. Sometimes, incorrect personal details, account duplicacy, or wrong credit repayment history can hurt your credit scores. Raise a dispute with the credit bureau to correct these issues promptly.
Every time you apply for a new line of credit, the lending institution initiates a hard enquiry, which can temporarily bring down your CIBIL score. Hence, by applying for loans only when it is absolutely required, you can avoid hard enquiries and improve your CIBIL score over time.
A personal loan, if repaid responsibly, can improve your credit history. It can also help consolidate multiple debts, reducing your overall credit utilisation. Keep your utilisation ratio below 30% to maintain a healthy score. However, avoid overborrowing and ensure repayment capacity before applying.
Retaining old, timely-paid credit cards can boost your CIBIL score. Older cards demonstrate a longer track record of credit management, thus enhancing your scores. Hence, it’s advised to retain old credit cards even if you aren’t using them actively.
The repayment history of joint loan accounts is reflected on all co-borrowers. Hence, if you have any joint accounts and a co-borrower defaults or misses a payment, it negatively affects your CIBIL score too. Hence, it’s always a good idea to monitor your joint loan accounts carefully.
Increasing your credit limit is a strategic move to increase your CIBIL score. Higher credit limits reduce your credit utilisation ratio. So, increasing your credit limits without increasing your spending can boost your score.
A valuable CIBIL score improvement tip is to maintain a mix of secured (e.g., home or auto loans) and unsecured credit (e.g., personal loans or credit cards). This demonstrates your ability to handle different types of credit responsibly.
Improving your CIBIL score requires consistency and smart financial habits. It is a gradual but rewarding process that can open doors to better loan terms and financial opportunities. By following these tips diligently, you can strengthen your credit profile and boost your creditworthiness over time.
Looking for a personal loan? With SMFG India Credit, eligible applicants with a CIBIL score of 750 or above can apply for funds of up to INR 30 lakhs* at attractive interest rates. Apply today with a hassle-free online application process that requires minimal documentation.
Important Note: This article is for general informational purposes only and may be subject to change from time to time. As product features, eligibility criteria, interest rates, charges, fees, tenures and other terms may be revised as per SMFG India Credit's policies, readers are advised to refer to the latest details from the respective product pages (please select from the top menu). For the latest loan charges, please visit Charges & Fees Link and for the latest Interest rates, please visit Interest Rate Rationale. Please note that final loan terms, disbursement process and eligibility criteria will depend on SMFG India Credit's policies at the time of loan application.
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Yes, some people have CIBIL scores of 800 and higher. This is considered to be an excellent credit score and demonstrates highly responsible financial behaviour.
A CIBIL score of 950 is invalid, as scores in India fall in the range of 300 to 900.
A personal loan, if repaid on time, can help build a positive credit history and improve your CIBIL score over time.
The highest possible CIBIL score is 900.
If you fail the credit appraisal process, your loan application may be rejected. Alternatively, the lender may offer the loan at a higher interest rate or require a co-applicant or guarantor to mitigate risk.
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