5 Tips to Boost Your CIBIL Score

What is the CIBIL Score?

The CIBIL score, provided by the Credit Information Bureau (India) Limited (CIBIL), is a numerical representation of an individual's creditworthiness based on their credit history and repayment behavior.

Lenders use this score to assess the risk of lending money or extending credit to an individual, with a higher score indicating better creditworthiness.

Good CIBIL Score

A CIBIL score over 750 is generally considered good, reflecting a strong credit profile. However, mistakes by lenders can sometimes adversely affect the CIBIL score.

These are the 5 tips to improve CIBIL score:

Timely Repayment of EMIs

Ensure you pay your equated monthly installments (EMIs) on time if you have taken a loan. Timely EMI payments positively impact your credit score.

Limit Unsecured Loans

Avoid taking more than two unsecured loans, as this can negatively impact your CIBIL score. Responsible borrowing contributes to a healthier credit profile.

Avoid Multiple Simultaneous Loans

Taking multiple loans simultaneously increases the risk of damaging your credit score. Manage your loans wisely to maintain a positive credit history.

Thoughtful Guarantor Decisions

Carefully consider becoming a guarantor or joint account holder, as the repayment behavior of the primary borrower directly affects your credit score.

Control Credit Card Spending

Excessive spending on credit cards suggests impulsive financial behavior. To maintain a good credit score, use credit cards responsibly and avoid unnecessary expenses.