Credit score
How to Increase Your CIBIL Score.
Two factors do most of the work — payment history and credit utilization make up roughly 65% of your score between them. Here's what actually moves the needle, and what doesn't.
What moves your score
- Pay everything on time. Payment history is the single biggest factor — set up autopay or reminders so nothing slips even by a few days.
- Keep credit card utilization under 30%. Using a high percentage of your limit — even if you pay it off in full — signals risk to lenders.
- Pay the full statement amount, not the minimum due. Carrying a balance forward attracts 30-42% annual interest and keeps utilization elevated.
- Space out new credit applications. Each one triggers a hard inquiry that can cost you 5-10 points and stays on your report for 2 years.
- Don't close old credit cards. Account age matters — a long-held card helps your score even if it's rarely used.
- Check your report for errors and dispute them. A wrongly-marked late payment or a closed loan still showing open can be actively hurting you for no real reason — see our guide to resolving a CIBIL dispute.
Building credit from scratch
If you have little to no credit history, a secured credit card — backed by a fixed deposit of ₹10,000-20,000 — is a common entry point. Use it for small, regular purchases, pay the bill in full each month, and you'll typically have a usable score within 8-10 months.
Frequently asked questions
What actually moves my CIBIL score the most?
Payment history and credit utilization together make up roughly 65% of your score. Paying every EMI and credit card bill on time, and keeping your credit card utilization below 30% of your limit, are the two levers with the biggest real impact — more than any other single factor.
Does paying only the credit card minimum due hurt my score?
Yes, indirectly and significantly — carrying a balance forward attracts 30-42% annual interest, and the growing utilization ratio from an unpaid balance drags your score down even if you're technically never "late." Pay the full statement amount, not just the minimum due.
Does applying for multiple loans or cards hurt my score?
Yes — each application triggers a "hard inquiry" that can dip your score by 5-10 points and stays on your report for 2 years. Space out applications and only apply when you're reasonably confident of approval, rather than applying to several lenders at once to compare offers.
How long does it take to see my CIBIL score improve?
With consistent on-time payments and controlled utilization, most people see meaningful improvement in 6-9 months, and can move from a middling score into the 750+ range some lenders treat as "good" within that window.
Should I close old credit cards I don't use?
Generally no — the age of your credit history matters to your score, so a card you've held for years is quietly helping you even if it's rarely used. Closing it shortens your average account age and can also increase your utilization ratio on remaining cards.