Top 5 Smart Habits to Boost your CIBIL Score in 2020

It sometimes happens that your credit score takes a hit and you would not get a desired personal loan at low-interest rates. It is not only in case of instant loans but also for some other types of loans. Hence, it is suggested that always keep a good CIBIL score.

In case if your credit score is low you are not sure what to do, here are a few habits that you should follow to improve your credit score for a personal loan.

5 Tips Helps To Boost Your Low CIBIL Score

#1: Make timely repayments 

One should never make it a habit to pay the bills after the due date. As your payment history accounts for 35% of your overall credit score. In order to improve your CIBIL score instantly, it is crucial to make your payments on time. You can always take measures to remember the due date by setting up reminders on your smartphone to remind you about the payment day, or you can set up an auto-payment facility in your bank account. It can save you from a huge burden of mental stress and help you get a personal loan for low CIBIL score.

#2: Make advance payments on credit cards

You may be careful and pay your credit card bills prudentially before the due date rolls in. The credit reports don’t need to be generated on the day you make your payments. So, it is better to clear all your dues during the middle of the billing cycle. It ensures that the repayments are always on time. Also, it is essential to ensure that your spending doesn’t go beyond the 30% threshold. So the best option is to make advance payments on the credit card.

#3: Stick to a few credit cards

It is vital to stick to old credit cards to boost the CIBIL score in India. If you have numerous credit cards that you no longer use and you wish to surrender a few to enhance your CIBIL score, then you must stick to the oldest ones. As you have been making payments on this card for an extended period, thus it indicates how worthy you are of credit and is more advantageous when compared to a new and barely used card. So, it is essential to stick to a few credit cards and preferably the old ones. You can check the CIBIL score required for a personal loan.

#4: Try not to spend beyond the credit limit

Your CIBIL score is dependent on how much you spend. If you spend more than 30% of the limit available on your credit card, then your CIBIL score is also decreased by 30%. So, it would be best if you always tried not to spend beyond the credit card limit, it will help you get a personal loan for low CIBIL score. It is necessary to keep your balance low and to make payments regularly. It can improve your creditworthiness and CIBIL score.

#5: Diversify the credit portfolio

It is essential to diversify the credit portfolio to improve CIBIL scores instantly. The most important part here is to expand. In case your credit portfolio is made only of credit cards, then you can not improve your score significantly. It is necessary to include various types of credit products like secured loans, or you can opt for a secured credit card. Diversifying your portfolio can help you improve your creditworthiness, and it can also protect you against market downturns. So don’t delay and start today.


These methods can help you turn over a new leaf in this new fiscal year. With these good habits, you can increase your credit score for personal loan steadily, thereby assisting you in the long run. You can also take credit counselling services to know the legitimate ways to improve your CIBIL score and apply for loans.

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