Your CIBIL score is one of the first things banks check when you apply for any loan. A score above 750 significantly improves your chances of approval and helps you secure better interest rates. If your score is lower, here are practical steps to improve it.
First, always pay your EMIs and credit card bills on time. Payment history accounts for the largest portion of your CIBIL score calculation. Even a single missed payment can pull your score down noticeably, so setting up auto-debit for due dates is one of the simplest fixes.
Second, keep your credit utilization ratio low — ideally under 30% of your total available credit limit. If you have a credit card with a \u20B91 Lakh limit, try not to carry a balance above \u20B930,000 at any time.
Third, avoid applying for multiple loans or credit cards within a short period. Each application triggers a 'hard enquiry' on your credit report, and too many enquiries in a short window can signal credit hunger to lenders, lowering your score.
Fourth, maintain a healthy mix of secured and unsecured credit. Having only credit cards (unsecured) without any secured loan history (like a car or home loan) can sometimes work against you.
Fifth, check your credit report regularly for errors. Incorrect entries — like a loan that was actually closed but still shows as active — can unfairly drag your score down. You can dispute these directly with the credit bureau.
Sixth, don't close old credit cards even if you don't use them often. The length of your credit history matters, and closing old accounts can shorten your average account age, which may lower your score.
Finally, if you're rebuilding credit, consider a secured credit card or a small personal loan that you repay diligently. This demonstrates responsible credit behavior over time.
At FinCred, we work with applicants across the credit score spectrum. Even if your score isn't perfect right now, our team can guide you toward lenders more likely to approve your profile, and suggest steps to strengthen your application.