Credit scores, commonly referred to as CIBIL scores (Credit Information Bureau India Limited), are a key metric lenders use when evaluating applications for personal loans and credit cards. Following RBI guidelines, banks are required to review an applicant’s CIBIL score during the evaluation process. A low CIBIL score signals poor credit management and makes you a less attractive borrower.
At Fibe, we believe in empowering you to take control of your finances. Below are five practical steps to improve your credit score, explained clearly and concisely.
- Make payments on time: Late or missed payments can significantly damage your credit score because they suggest you may struggle to meet debt obligations. There is no instant fix—credit scores reflect long-term history—so consistently paying bills on time is essential. This includes credit card bills, rent, utilities and other recurring obligations. Aim to keep your credit card usage under 50% of the limit, or better yet under 30%, and consider requesting a higher credit limit if necessary to reduce utilization.
- Keep balances low: Only charge what you can comfortably repay by the billing date. Paying down outstanding balances promptly and keeping credit card balances low or at zero helps your credit profile. Maintaining a credit utilization ratio of 30% or less is a reliable rule of thumb for a positive impact on your score.
- Keep older accounts open: Length of credit history matters. If you have a well-managed, older credit card account, retaining it can help your score by demonstrating a longer, responsible credit history. Closing long-standing accounts can shorten your average account age and potentially lower your score.
- Identify and correct inaccuracies: Regularly review your credit report and dispute any errors—such as incorrect balances, duplicate accounts, or typographical mistakes—promptly with supporting documentation. Lenders and credit agencies typically have up to 30 days to investigate and resolve disputes. Avoid applying for new credit until outstanding disputes are settled to prevent further complications.
- Consider a secured credit card: Secured cards, issued against a fixed deposit by many banks, are a useful option for people with low or no credit history. These cards function like regular credit cards, but the FD reduces the lender’s risk. Making timely payments on a secured card helps build a positive repayment history and can gradually raise your credit score.
Fibe Credit Score Analyser lets you compare your credit profile against top-performing borrowers and shows how your credit behavior affects your score. It also provides actionable tips to help you improve your credit health.
Open the Fibe App and start improving your credit health today.
FAQs on improving credit score
How can I raise my credit score in 30 days?
Meaningful improvements usually take several months. Most lenders report account activity monthly, and credit scores reflect cumulative behavior, so noticeable changes often require at least six months. However, correcting report errors or paying off significant balances can sometimes produce quicker improvements.
What is the fastest way to improve credit?
Fast ways to help your score include:
- Requesting an increased credit limit and keeping usage around 30% of that limit
- Disputing and correcting errors on your credit report
- Paying down existing debt
How can I boost my own credit score?
Boost your score by consistently paying bills and EMIs on time, reducing your credit utilization ratio, paying off outstanding loans, avoiding multiple simultaneous credit applications, and keeping older credit accounts active to lengthen your credit history.
What are 3 things that will raise your credit score?
The three most impactful actions are: making timely payments, using a smaller portion of your available credit, and maintaining a healthy mix of different types of credit while demonstrating a stable repayment record.
Is there a way to update your credit score faster?
There’s no guaranteed quick update, but significant steps like fully paying off debts or securing a credit limit increase can reduce your credit utilization and may lead to faster improvements when lenders report the changes.
How to reset your credit score?
You cannot reset a credit score because it is based on historical data. However, you can steadily improve it by establishing consistent, responsible credit behavior—making timely payments and reducing outstanding balances.
How can I get a 700 credit score in a month?
Reaching a 700 score within a month is generally unrealistic. You can take immediate steps that may help quickly—such as disputing inaccuracies, clearing large balances if possible, and requesting a higher credit limit—but most improvements take time as positive activity is reported and reflected in your credit history.