How to Improve Your Credit Score Quickly

A good credit score is essential for securing low-interest loans. Start by paying your EMIs and credit card bills on time payment history contributes to nearly 35% of your CIBIL score. Keep your credit utilization below 30% to show lenders that you manage your finances responsibly.

Avoid applying for too many loans at once; multiple hard inquiries can drop your score. Regularly review your credit report for errors and dispute any incorrect entries. By maintaining disciplined financial habits, you can see your credit score improve within a few months, increasing your eligibility for better loan offers

1️⃣ Maintain a Healthy Credit Mix

Lenders prefer borrowers who have a balanced mix of secured loans (like home or auto loans) and unsecured loans (like personal loans or credit cards). Having only unsecured credit can make your profile look risky. A healthy combination shows financial maturity and strengthens your creditworthiness over time.

2️⃣ Avoid Closing Old Credit Accounts

Your oldest credit accounts increase the average age of credit, which is an important factor for your score. Closing old cards can reduce your credit history length and indirectly increase your credit utilization ratio, both of which may negatively impact your CIBIL score. Keep old, low-usage accounts active.

3️⃣ Increase Your Credit Limit (But Don’t Use It)

Requesting a higher credit limit and keeping your spending low helps reduce your credit utilization ratio. For example, if your limit increases from ₹50,000 to ₹1,00,000 but you continue spending only ₹15,000, your utilization drops significantly improving your score and risk profile.

4️⃣ Convert Large Expenses Into EMIs When Needed

If you expect difficulty paying a high bill in one go, converting it into EMIs avoids missed payments. Timely EMI payments protect your score and prevent negative reporting. Always choose EMI plans with low or zero interest to avoid unnecessary costs.