How to improve your credit score
If your score is below 750 and you're planning a loan application in the next year, the good news is that most people can add 50-150 points with disciplined action over 6-12 months. Here's what actually works.
Last updated: 15 June 2025
Ten actions ranked by impact
- 1. Pay every credit-card bill in full before the statement date
- 2. Set up auto-debit for every EMI so you never miss one
- 3. Keep total card utilisation under 30% of total limit
- 4. Ask your card issuer for a limit increase (without asking for new cards)
- 5. Do not close your oldest credit card even if unused
- 6. Space credit applications - no more than one every 3 months
- 7. Dispute any incorrect entries via CIBIL's dispute portal
- 8. Add a small secured loan (like FD-backed card) if you're new-to-credit
- 9. Ensure any settled loans are updated as 'Closed' after full clearance
- 10. Monitor your report monthly during the improvement window
Timeline to expect
| Starting score | Target after 12 months | Effort required |
|---|---|---|
| 550 – 649 | 680 – 720 | High - fix defaults + build habits |
| 650 – 699 | 720 – 760 | Moderate - reduce utilisation, add mix |
| 700 – 749 | 760 – 800 | Low - maintain habits, wait for age |
Common mistakes to avoid
- Taking a settlement rather than negotiating a full-payment plan
- Closing recently opened cards immediately
- Ignoring a small utility EMI you set up months ago
- Applying to 5 lenders simultaneously to 'test' who approves
- Trusting SMS/agents offering 'CIBIL correction' for a fee