Credit Score: Complete Guide to Check & Improve Your CIBIL Score

Your track record of paying EMIs, credit card bills, and other debts on time. Even one missed payment can drop your score by 50-100 points.

The percentage of your available credit that you're using. Ideally, keep it below 30%. If you have a ₹1 lakh credit limit, don't use more than ₹30,000.

How long you've been using credit. Longer credit history shows stability. The average age of your accounts matters more than the oldest account.

Having a healthy mix of secured (home loan, car loan) and unsecured (credit cards, personal loans) credit shows you can manage different types of debt responsibly.

Multiple loan applications in a short period signal financial distress. Each hard inquiry can reduce your score by 5-10 points temporarily.

A credit score of 750 or above is considered excellent in India. Scores between 700-749 are good, 650-699 are fair, and below 650 is poor. Most lenders prefer scores above 750 for the best loan terms and interest rates.

Depending on your starting point and actions taken, you can see improvements in 1-3 months. Correcting errors and reducing credit utilization can show results quickly. Significant improvements (100+ points) typically take 6-12 months of consistent good credit behavior.

No, checking your own credit score is a "soft inquiry" and does not affect your score. However, when lenders check your score during a loan application (hard inquiry), it can temporarily lower your score by 5-10 points. Multiple hard inquiries in a short period can have a cumulative negative effect.

Yes, but your options will be limited and you'll likely face higher interest rates. A 650 score is considered fair, and approval chances are around 40-50%. You may need to provide additional documentation, have a co-applicant, or offer collateral. It's better to improve your score to 700+ before applying for major loans.

CIBIL score is a type of credit score calculated by CIBIL (TransUnion CIBIL), one of four credit bureaus in India. The term "credit score" is generic and can refer to scores from any bureau (CIBIL, Experian, Equifax, CRIF High Mark). All use similar methodologies and range from 300-900, but may have slight variations based on their data sources.

No, closing a credit card usually hurts your score. It reduces your available credit (increasing utilization ratio) and shortens your credit history length. Instead of closing old cards, keep them active with small purchases paid off monthly. Only close cards if they have high annual fees you can't justify.

There's no magic number, but 2-3 credit cards is ideal for most people. This provides enough credit mix and available credit without being difficult to manage. What matters more than quantity is: (1) keeping utilization below 30% on each card, (2) paying all bills on time, and (3) maintaining cards for a long time to build credit history.

You can only remove inaccurate or erroneous information by disputing it with the credit bureau. Legitimate negative items (late payments, defaults, settlements) will remain on your report for 7 years from the date of first delinquency. However, their impact on your score decreases over time, especially if you maintain good credit behavior afterward.