Your CIBIL score is an important part of your financial health, which affects your loan approval, How to Improve Your CIBIL Score Fast? credit card applications, and financial transactions. If you want to improve your CIBIL score quickly, then this blog post is for you. In this, we will give you practical tips that will help you improve your CIBIL score quickly.
What is a CIBIL Score?
The CIBIL score is a 3-digit number that indicates your creditworthiness. The score ranges from 300 to 900, with a score above 750 considered good. Your CIBIL score depends on your financial behavior, such as payment history, credit utilization, and credit inquiries.
How to improve CIBIL score quickly?
Pay bills and EMIs on time
First of all, pay all your bills and EMIs on time. Late payments can lower your CIBIL score. You can set automatic payments or set reminders so that you never miss a payment. This will help improve your score quickly.
Keep the Credit Utilization Ratio low
Your credit utilization ratio shows how much of your total credit limit you are using. Keep this ratio below 30%. If your credit limit is Rs.1,00,000, do not keep a balance of more than Rs.30,000. This will help improve your score.
Correct the mistakes in your credit report
Check your credit report regularly and look for any mistakes or discrepancies. If you find any mistakes, immediately raise a dispute with CIBIL. This will help improve your score quickly.
Do not close old credit card accounts
Closing old credit card accounts reduces your credit history, which lowers your score. If you have to close the account, think carefully before taking the decision.
Keep your credit mix healthy
Credit mix means that you have different types of credit accounts, such as credit cards, personal loans, and home loans. This shows lenders that you can manage different types of credit. This can improve your score.
Limit new credit applications
Every new credit application result in a hard inquiry on your credit report, which temporarily lowers your score. So, limit new credit applications and apply only when necessary.
Use Secured Credit Card
If your score is low, use secured credit card. In this you have to give collateral in the form of fixed deposit. With this you can build your credit history and improve your score.
Absolutely! “Clear overdue accounts quickly” is a very important step if you are working on a goal like How to Improve Your CIBIL Score Fast. Here we explain this point in more detail and add some valuable points
Clear overdue accounts quickly
If you see any overdue payments or defaulted loans in your credit report, it has a very negative impact on your CIBIL score. Overdue accounts means that you have not made your repayment on time, or the full amount is due or you have missed an EMI. Follow these steps so that the issue of overdue accounts is resolved quickly:
1.Identify the overdue amount
Download your CIBIL report and see in which accounts the payment is due. Track not only credit cards, but also personal loans, car loans, or consumer durable loans.
2.Contact the lender
To clear the overdue amount, contact the lender (bank or NBFC) immediately. Sometimes you may get a settlement offer, or you may be given a repayment plan.
3.One-Time Settlement vs Full Payment
If you are able to pay the entire amount, then make full payment. Settlement improves the score, but “settled” status can be seen in the CIBIL report which gives a negative signal to the lenders.
4.Take NOC after payment
After clearing the payment, do not forget to take No Objection Certificate (NOC) from the bank. This will be proof for your records that you have paid the due amount.
5.Keep monitoring CIBIL report
Changes should be reflected in CIBIL report within 30-45 days of payment. If not, you can get it updated by raising a dispute with CIBIL.
Also Read:- Best bank accounts for students in 2025?
6.Set auto debit/reminder for future
Set up a system of auto debit or reminder before the payment becomes due, so that the same mistake does not repeat.
7.What will be the positive impact?
- Negative flags will be removed from your credit report.
- Score will improve rapidly as the impact of overdue is heavy.
- Taking a loan or applying for a credit card will become easy in future.
- It shows financial discipline, which is a positive signal for lenders
“If you want to improve your CIBIL score fast, then clearing your overdue accounts should be your priority first.”
8.How much time does it take to improve CIBIL score?
Improving CIBIL score can take time, but if you follow the above tips, you can improve your score in 4 to 12 months. This time depends on your credit history and current financial behaviour.
Conclusion
Improving your CIBIL score is a gradual process, but if you adopt consistent and responsible financial habits, you can improve your score quickly. Incorporate the above tips into your daily financial routine and improve your credit score.