A strong CIBIL score is essential when applying for home or personal loans. Lenders heavily rely on it to assess your creditworthiness and decide interest rates. In 2025, maintaining a score of 700+ opens doors to competitive loan offers, while anything above 750 earns premium terms. Here’s your guide to building and maintaining a robust credit score.
1. Understand Your CIBIL Score & Why It Matters
Your CIBIL score is a three-digit number (300–900) that reflects your repayment history, outstanding debts, credit mix, and past inquiries. It directly impacts your ability to secure loans and premium interest rates. Regular monitoring helps you spot errors and take corrective steps early.
How to check for free:
https://economictimes.indiatimes.com/wealth/save/how-to-check-your-cibil-score-a-step-by-step-guide-to-monitor-your-credit-score/articleshow/121163406.cms
2. Make Timely Payments Every Time
Payment history is the most significant factor—about 35% of your score. Even a single missed EMI or credit card bill can drop you significantly. Ensure all your dues—loans, credit cards, utility bills—are paid before the due date. Set up auto-debits or reminders to stay disciplined.
Expert advice:
https://indianexpress.com/article/personal-finance/how-to-boost-cibil-score-6-smart-tips-for-a-higher-credit-score-9237862/
3. Keep Credit Utilization Below 30%
Utilization ratio—your outstanding debt compared to available credit—is the second major factor (30%). High utilization signals risk. Aim to use no more than 30% of your total credit. If you need more spending room, request a higher credit limit rather than maxing out your current one.
Guideline from experts:
https://indianexpress.com/article/personal-finance/how-to-boost-cibil-score-6-smart-tips-for-a-higher-credit-score-9237862/
4. Maintain a Healthy Credit Mix
Mixing secured loans (home, auto) and unsecured credit (credit cards, personal loans) indicates financial stability. Lenders like to see diversity in your credit profile. Apply for different types only when necessary—multiple inquiries in a short span can lower your score.
Tips from Bajaj Finserv:
https://www.bajajfinserv.in/insights/smart-tips-to-improve-your-cibil-score
5. Limit Hard Inquiries & New Applications
Every loan or credit card application triggers a hard inquiry, temporarily reducing your score. Multiple applications within a short period can be a big red flag. Instead, research eligibility and apply selectively to avoid unnecessary hits.
In-depth tips:
https://kreditbazar.com/blog/how-to-build-a-strong-cibil-score-to-secure-better-personal-loan-terms/
https://indianexpress.com/article/personal-finance/how-to-boost-cibil-score-6-smart-tips-for-a-higher-credit-score-9237862/
6. Keep Old Accounts Alive
Closing old credit cards or loan accounts can hurt your credit age and utilization ratio. Even if you’re not actively using a card, make small transactions occasionally to keep it alive without increasing debt.
Advice validated by industry best practices:
https://indianexpress.com/article/personal-finance/how-to-boost-cibil-score-6-smart-tips-for-a-higher-credit-score-9237862/
https://kreditbazar.com/blog/how-to-build-a-strong-cibil-score-to-secure-better-personal-loan-terms/
7. Regularly Check & Dispute Errors in Your CIBIL Report
Errors—such as wrongly listed late payments or non-existent accounts—can drag your score down. Obtain your free annual report and update your details carefully. Raise disputes online or through CIBIL’s grievance redressal system for prompt corrections.
Detailed pointers:
https://timesofindia.indiatimes.com/business/financial-literacy/debt-management/credit-score-tips-7-ways-to-improve-your-cibil-score/articleshow/111630195.cms
https://kreditbazar.com/blog/how-to-build-a-strong-cibil-score-to-secure-better-personal-loan-terms/
8. Consider a Secured Credit Card or Loan
For credit-building, a secured credit card—backed by a fixed deposit—can help establish repayment history without risk. Managing it responsibly contributes to better credit behavior and helps anyone looking to build history quickly.
Expert endorsement:
https://indianexpress.com/article/personal-finance/how-to-boost-cibil-score-6-smart-tips-for-a-higher-credit-score-9237862/
https://timesofindia.indiatimes.com/business/financial-literacy/debt-management/credit-score-tips-7-ways-to-improve-your-cibil-score/articleshow/111630195.cms
9. Use Personal Loans Strategically
A personal loan, repaid on time, can enhance your credit mix. But take it cautiously—it increases debt and prompt repayments are critical. This must be balanced against doing timely EMIs to positively impact your score.
Financial insights:
https://www.investopedia.com/taking-out-a-personal-loan-may-help-you-improve-your-credit-score-but-should-you-8780166
10. Maintain Discipline & Watch Your Score Over Time
Credit health isn’t built overnight—it takes months of consistent, disciplined behavior. Don’t chase a perfect score; focus on responsible borrowing and gradual improvement. Tracking your score and behavior regularly ensures long-term benefits.
Insight from CIBIL CEO Bhavesh Jain:
https://economictimes.indiatimes.com/wealth/spend/how-fast-you-take-loans-also-impacts-your-credit-score-not-just-the-amount-bhavesh-jain-md-ceo-transunion-cibil/articleshow/121529976.cms
📊 Credit Behavior Comparison Table
| Strategy | Impact on Score |
|---|---|
| Pay on time | Major (35%) |
| Keep utilization <30% | Major (30%) |
| Maintain credit mix | Positive |
| Avoid hard inquiries | Prevents unnecessary drops |
| Keep old accounts alive | Helps credit age and utilization |
| Regularly check/dispute errors | Avoids unjust penalties |
| Use secured credit tools | Good for thin-credit borrowers |
| Discipline & time | Essential for sustainable score |
✅ Final Takeaway
Building a strong CIBIL score is about consistent, responsible financial behavior. Focus on timely payments, prudent credit use, limited inquiries, and maintaining healthy credit habits. With a score of 750+, you’ll be in a strong position to secure attractive home and personal loans, lower interest rates, and better financial options.
