Jan 24, 2025, 09:14 AM IST

Boost your CIBIL score: Top tips to improve your credit rating 

Srishty Choudhury

Here is a guide of how to improve your CIBIL score

Consistent use and timely repayment of credit are essential. This behaviour demonstrates reliability and responsibility to potential lenders, thereby positively influencing the credit score.

Maintain healthy credit

Serving as a guarantor can be risky, as the primary borrower’s default will adversely affect your credit score. It is advisable to agree to such arrangements only if you are certain of the borrower’s financial stability and repayment capacity.

Avoid Being a Guarantor

Applying for multiple loans within a short time frame can be perceived as a sign of financial instability by lenders, which may result in a lower credit score.

Avoid Acquiring Multiple Loans

By obtaining a higher credit card limit while maintaining the same level of expenditure, you can lower your credit utilisation ratio. This lower ratio will gradually lead to an improved credit score.

Increase your credit card limit

It is crucial to do a credit score check and know its limitations. It is recommended to keep your credit utilisation below 30% of your available credit limit. This practice signals responsible credit management to lenders.

Maintain the credit card ratio

It is crucial to make timely payments for your credit card bills and loan EMIs. Delinquent payments are a major detriment to one’s credit score.

Repay your dues promptly 

Regular review of credit card statements and credit reports can help identify errors or unauthorised transactions that may harm your credit score. Prompt action on any discrepancies is vital.

Monitor your credit card activity

This information is not DNA's opinion but obtained from media reports