Nifty99000 100%

Sensex99000 100%


10 Guaranteed Tips To Increase Your Credit Score

Author: Viral Bhatt/Wednesday, July 22, 2020/Categories: Exclusive

Rate this article:
10 Guaranteed Tips To Increase Your Credit Score

When assessing your credit eligibility, Cibil score is one of the most important factors that lenders check on. The credit score ranges from 300 to 900 with 300 being the lowest and 900 the highest. The score signifies your credit history, reflecting your repayment behavior that helps lenders get a fair idea to decide on the status of your application. A low credit score is a sign of bad financial behavior that can lead to rejection or approval of the loan at a low interest rate. To be able to get quick access to funds, having a good credit score is essential. Read this article to know how you increase your CIBIL Score.

Ways To Improve Credit Score

Pay off your loan EMIs on time: If you have taken a loan i.e. secured or unsecured one, ensure that you don’t miss out of any of the EMI payments as it can hurt your credit score,  thereby making it difficult for you to secure more loans in future. If you are unable to pay off your loan EMIs, then it is best that you approach a lender to restructure your EMI and pay off the debt.

Don’t make too many credit applications:

If your credit card or personal loan application has been rejected then remember the same will get recorded in your credit report. So, if you go and apply with another lender, then they may also reject your loan application on the basis of low score. Hence, the best thing you can do is wait and re-apply after a span of 2-3months.

Pay your credit card bills on time:

Paying off credit card bills on time is a sign of good credit behavior and helps you in improving the score. Ensure that you don’t pay only the minimum dues and pay off the entire bill due amount. Avoid taking too much debt at a time: The number of loans that you hold has a great impact on your credit score. Taking multiple loans shows that you are unable to manage your finances and further decreases the score. On the other hand, if you are able to pay off the loan EMIs on time, then it can boost your score.

Monitor your credit utilization ratio:

Using a credit card to make purchases may help you get cash back and win reward points, but it is essential that you keep the credit utilization only within 30 per cent of your credit limit. Doing this can help you improve the credit score and give the lenders a sense of assurance that you are not dependent on credit card for making all the purchases.

Ensure you maintain a mixed bag of credit:

There are two types of loans you can opt for-secured and unsecured loan. Taking too many unsecured loans has a negative impact on your score, whereas opting for secured loans like home or car loans can in fact help you increase the score.

Check for errors in your credit report:

It is important to note that your financial transactions may not be the only reason for a low credit score. There may be errors in your credit report as well due to which it is imperative that you regularly keep on checking the same. Note down the incorrect information presented in your credit report and report the same to CIBIL authority to rectify the errors and update the report with correct details.

Opt for longer loan tenure:

When availing a loan, opt for longer repayment tenure, as it will ensure you get minimal EMI to pay each month and you would be comfortable to make timely repayments. Your credit score improves if you don’t delay, default or skip your EMI payments.

Avoid credit card closure:

The age of your credit history matters. If you have an old credit card towards which you have maintained a good credit behavior then avoid closing the credit card. Remember, the longer the credit history, the better your credit score that indirectly increases your chances of getting your loan or credit card application approved.

Set up payment reminders:

Set up your EMI dates and credit card payment date in your calendar to pay off the same on time and to avoid making any default. Being consistent with your payments will help you improve your Cibil score.

Monitor your guarantor, co-signed and join accounts: If the primary account holder defaults on his/her loan then you will be equally held responsible to pay off the dues. Your join account holder’s negligence can affect your credit score, and you will be denied access to the same as and when you need it. Also, you will have to clear the dues if the primary account holder is unable to do so. Therefore, it is best to avoid becoming a co-signer, guarantor or join account holder for any type of loan or credit card.

Increase your credit card limit:

This does not mean that an increased credit card limit increases your spending cycle. The trick here is that this can help you improve your Cibil score. Increasing the credit limit will help you keep your utilization low as by doing so you leave a positive impact on your score.

Following the above tips can help you improve your credit score. However, it is important to note that your score can’t be improved overnight and will take around 3-6 months for you to practice good financial behavior. By working towards improving your credit score, you open up a whole new world of opportunities for you as it helps you get quick access to credit card funds, quick loan approval, low interest rates and high loan amount.

The author is head and founder of Mumbai-based financial advisory firm Money Mantra. He can be reached at


Number of views (280)/Comments (0)

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free