Fast-track your credit health: Increase your CIBIL score in 30 days

Your credit or CIBIL score is a measure of your creditworthiness and financial health. This score plays a crucial role in the loan approval process, especially for personal loans. Therefore, before applying for personal finance or any other type of loan, it is essential to check your credit score and improve it if necessary. The good news is that you can significantly improve your score in 30 days.

One of the simplest yet most effective ways to improve your credit score is to ensure you never delay bill payments. Whether it's a credit card bill, loan EMI, or any other payment, always pay it on or before the due date. Timely payments reflect financial discipline and qualify you for benefits like a higher credit limit. This positively impacts your credit score. According to Tata Capital, consistent punctuality in payments is key to improving your creditworthiness.

While having no credit score might seem advantageous, it can create problems when applying for loans. A credit history acts as a record of your financial behavior, making it easier for lenders to trust you with higher loan amounts at better interest rates. Even if you don't intend to use it frequently, having a credit card and managing it responsibly will increase your credit score over time.

Another strategy to quickly improve your credit score is maintaining a low credit utilization ratio. This means keeping your credit usage below 30% of your available credit limit. For instance, if your limit is ₹1 lakh, restrict spending to ₹30,000 or less. This approach not only helps improve your score within 30 days but also cultivates financial discipline. By ensuring timely bill payments and keeping your utilization low, you demonstrate responsible credit management.

Requesting a credit card limit increase is another effective way to improve your credit score. When your limit is increased, if your spending remains consistent, it automatically lowers your credit utilization ratio. Most lenders are willing to approve such requests if you have maintained a good payment history. Some even allow online applications for limit increases. Regularly monitoring your credit report is essential for improving your score. Notably, platforms like CIBIL, Equifax, Highmark™, and Experian issue detailed reports reflecting your financial history.