Credit score & CIBIL · Updated October 2026 · 6 min read
You can improve a low CIBIL score, and the steps are mostly simple: pay on time, use less of your limit, and avoid applying for credit you don’t need. This guide covers what to do, in order of impact, and how long to expect it to take.
In short: Pay every bill on time, keep card usage below about 30% of your limit, keep old accounts open, apply for new credit rarely, and correct any errors on your report. Expect a few months of steady habits before you see a clear change.
Step 1: Check your credit report first
Before you change anything, get your credit report and read it. Look for accounts you don’t recognise, wrong balances, loans shown as unpaid that you have repaid, and late payments you believe are wrong. Errors are more common than people expect, and fixing them can raise your score faster than any other step. See how to check your CIBIL score for free.
Step 2: Pay every bill and EMI on time
Payment history is the biggest factor in your score. Even one late payment can hurt, and it stays on your report for years.
- Set up auto-debit for EMIs and at least the minimum due on credit cards.
- Better still, pay the full bill amount each month so you never pay card interest.
- Pay a few days before the due date, so bank delays don’t make you late.
Step 3: Keep credit card usage low
Credit utilisation is the share of your card limit that you use. A common guideline is to stay below 30%. On a ₹1,00,000 limit, that is ₹30,000 per statement.
- Pay part of your bill before the statement date, so the balance reported to the bureaus is lower.
- Ask your bank for a higher limit if you spend a lot, since a higher limit lowers your usage percentage. Only do this if you won’t spend more as a result.
Step 4: Keep your old accounts open
The age of your credit history helps your score. If you have an old card that costs nothing to hold, keep it open and use it for a small purchase every few months. Closing it can shorten your history and reduce your total limit, which raises your usage percentage.
Step 5: Apply for new credit sparingly
Every application for a card or loan creates a hard enquiry on your report. Several in a short time can lower your score and make lenders cautious. Compare products and check eligibility first, then apply to the one that fits. Our credit card and loan pages list the eligibility requirements to help with this.
Step 6: Clear overdue amounts and settled accounts properly
- Overdue amounts: Pay these as soon as you can. The longer a default lasts, the more it hurts.
- “Settled” accounts: If you settled a loan for less than the full amount, your report shows “settled”, which lenders view negatively. Where possible, repay in full and ask the lender to update the status to “closed”.
- Guarantor loans: If you are a guarantor and the borrower misses payments, your score can be affected too.
Step 7: Dispute errors on your report
If you find a mistake, raise a dispute through the credit bureau’s website, with supporting documents such as a loan closure letter or payment proof. The bureau will ask the lender to verify the data, and the report is corrected if the lender confirms the error. Keep a record of your dispute reference number and follow up if it takes longer than expected.
Starting from no credit history
If you have no score because you have never used credit, you can build one safely:
- Get a starter credit card, such as a lifetime free card, or a card secured against a fixed deposit.
- Use it for small, planned purchases and pay the full bill on time.
- After several months of on-time payments, your first score will appear and start to improve.
How long does it take?
It depends on where you start. Fixing an error or lowering your card usage can lift your score within one or two reporting cycles. Recovering from missed payments or a settlement takes longer, usually many months of consistent on-time payments. There is no shortcut, and no honest way to guarantee a specific score by a specific date.
What to avoid
- “Credit repair” services that promise a high score. Only you and the lender can change accurate information on your report. Anyone claiming otherwise, especially for a fee, is a red flag.
- Paying only the minimum due on cards. It keeps your account current, but interest charges build up and your balance stays high.
- Taking a new loan just to “build credit”. Borrow only what you need and can repay.
Common questions
How can I increase my CIBIL score quickly?
The fastest changes usually come from correcting errors on your report and paying card balances down so your usage is lower. Both can show up within weeks. Larger improvements need steady, on-time payments over several months. Does paying off a loan early improve my score?
Closing a loan in good standing is a positive sign, but it can slightly reduce your score in the short term if it was your only active account or lowers your credit mix. Don’t avoid repaying a loan to keep your score up. The interest you save matters more. Does a higher credit limit help?
It can, because it lowers your usage percentage, as long as you don’t spend more. Asking for a limit increase may sometimes trigger a hard enquiry, so check with your bank first.
Learn the basics first? Read what a CIBIL score is and how it is calculated. Ready to apply? See credit cards and loans matched to your eligibility.
Cards that help you build a credit score
A secured card, backed by a fixed deposit, is one of the easiest ways to start or rebuild your score:
- IDFC FIRST WOW: lifetime free, no income proof needed.
- SBM ZET: lifetime free RuPay card backed by an FD from ₹2,000.
- IOB ZET FD: another FD-backed card for building credit.
See all 101 cards with fees and eligibility on our credit cards page, or get a personal pick from the Card Finder.
Disclaimer: This guide is for education and is not financial advice. Credit scoring models and lender policies change. Some links on Koshfin are affiliate links; we may earn a commission at no extra cost to you.