In 2025, your CIBIL score is more important than ever. Whether you’re applying for a personal loan, getting a new credit card, renting a flat, or even securing a job in some industries, your credit score plays a critical role. A good score opens doors to low-interest loans, high-limit credit cards, and better financial credibility. But for many Indians, especially first-time borrowers and young professionals, building and maintaining a healthy CIBIL score can feel confusing. Fortunately, the process is not difficult — it just requires discipline, planning, and awareness of how credit behavior is tracked.
CIBIL (Credit Information Bureau India Limited) is India’s leading credit information company. It assigns individuals a three-digit credit score ranging from 300 to 900, based on your credit history, repayment behavior, credit utilization, and other factors. A score above 750 is generally considered excellent and increases your chances of fast loan approvals and attractive interest rates. If your score is below 650, you may face rejections, higher interest charges, or lower credit limits. So how do you get and keep a strong score? Let’s break it down step-by-step.
Step 1: Start with a Credit Product
If you’ve never used credit before, you won’t have a score — and that’s not ideal. You need to show credit activity to build one. One of the easiest ways to begin is with a secured credit card. Banks like SBI, ICICI, and Axis offer secured cards against fixed deposits, often with limits equal to 80–90% of the deposit. You can start with as little as ₹10,000. Use the card responsibly and repay the full amount every month. Within 3–6 months, your score will start to build.
Step 2: Always Pay On Time
Payment history accounts for more than 30% of your CIBIL score. Whether it’s a credit card bill, EMI, or BNPL repayment — always pay on or before the due date. Even a single missed payment can drop your score by 50–100 points and stay on your record for years. Set up auto-debit mandates or payment reminders using apps like CRED, Paytm, or your bank’s mobile app to avoid missing deadlines.
Step 3:
Keep Credit Utilization Below 30%
Credit utilization ratio is the amount of credit used compared to the total limit available. If your card limit is ₹1 lakh and you consistently use ₹70,000, your utilization is 70%, which signals high dependency on credit and hurts your score. Keep your monthly usage under 30% — ideally under 20%. If you need to spend more, ask for a limit increase after 6 months or get a second card.
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