5 tips to build or maintain a healthy CIBIL Score

Knowing how to maintain good credit score is essential for financial health. A CIBIL score of 685 and above reflects responsible credit behaviour, making you a reliable borrower in the eyes of lenders. This often leads to better loan offers, higher sanction amounts, and lower interest rates. If your score is already 685 or above, regular CIBIL score check and adopting smart financial habits can help you strengthen and maintain your score over time. Below are five effective practices to follow for long-term credit fitness.

Monitor your credit utilisation ratio

Credit utilisation ratio is a calculation that measures credit usage against your credit limit. This ratio should always be 30% to ensure that your credit score remains stable. To do this, you must ensure that you limit your spending. For example, don't spend via your credit card up to its entire limit month after month.

Do not close old accounts or credit cards

As time passes, you may consider cancelling your old credit cards. However, note that if you can successfully maintain them and pay the bills (in full) on a timely basis, your old credit cards will show a richer credit history. In turn, this will work towards bettering your credit score.

Check your eligibility for every new loan that you borrow

It’s important to know how to maintain credit score while applying for loans. With multiple lenders offering credit, avoid making random applications. Instead, always check your eligibility first to improve approval chances. Rejected applications can negatively impact your score, so be cautious. Regularly check CIBIL score to track your credit health and make informed borrowing decisions.

If you have a low credit score, you can still explore an instant personal loan with low CIBIL Score to meet your financial needs.

Maintain healthy credit mix

Maintaining a healthy credit mix involves balancing different types of credit, such as personal loans, business loans, and education loans, along with secured credit like home loans or auto loans. A diverse credit profile shows lenders that you can manage various credit responsibly, which can positively impact your credit score and improve your chances of future loan approvals.

Check your CIBIL report regularly

It can happen that your CIBIL report has errors. For example, your lender may forget to inform CIBIL that you have closed your loan. Regularly checking your CIBIL report will bring to light such errors and allow you to correct any mistakes at the earliest, thereby maintaining your credit score.

Take one loan at a time

When working on how to maintain CIBIL score, it’s best to avoid taking multiple loans simultaneously. Borrowing too many at once signals credit hunger, which can hurt your rating. Instead, prioritise your financial needs and take one loan at a time to keep your CIBIL score strong and stable.

As long as you implement these measures, you are sure to improve your credit score as time goes by.

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