How to improve CIBIL Score or how to improve Credit Score

5 min readDec 8, 2020

CIBIL Score Meaning and CIBIL Score Range

Credit Information Bureau (India) Limited (CIBIL) is a company founded in 2000 and having its Head Office at Mumbai. Later in 2010, CIBIL was acquired by world oldest credit reporting agency TransUnion. Banks / FIs who are the subscribers /members of CIBIL can get the information from CIBIL portal. CIBIL Report is a detailed Report of various credits / loans being availed of by you from various Banks/FIs. The score value ranges from 300 to 900. Higher the score means your loan application will get fastest resolution. The most acceptable Score by lenders is above 750, which is considered as good CIBIL Score. Hence you need to focus on how to improve CIBIL Score.

Not only score which determines your loan application but also the overdue status of various loan facilities being availed of by you from various lenders. Lesser overdue means you are prompt in discharging your liabilities. This shows your tendency to repay your loans without any delay. While appraising your loan, lenders mostly view your Income, Existing deductions and CIBIL Score.

Hence, CIBIL score is very important part of your Loan Assessment and you need to focus on how to improve CIBIL Score. Most of the Banks do not accept less than 600 CIBIL Score. Score between 300 to 600 shows the high Probability of Default. Some CIBIL reports come with NA or NH status. NA means no credit activities in last couple of years and NH means no credit history.

CIBIL Report is divided into 6 parts as under:-

CIBIL Score reflects your Credit Health;
Personal Information gives details about your Identity details like PAN No., Date of Birth;
Contact Information gives details about your Residential / Employer address and Phone Nos.;
Employment Information reflects your monthly and annual income
Account Information shows various credit / loan account details like Name of the Lender; Date of Opening, Date of Closure, Present Balance Outstanding, sanctioned limit and overdue status, if any etc.;
Enquiry Information reflects various enquiries have been made by you or various credit institutions like Banks/FIs while assessing any of your loan application.

CIBIL Score Calculation depends upon the number of factors such as :

Default on any loan repayment / Past performance : Most of the time you miss your EMI due to various reason. Sometimes you miss it, may be because of, your genuine financial problems. Sometimes, you may be having disputes with your Lenders on extra charges, fraud, annual fees and incorrect information etc. Your CIBIL score may also get affected, if you miss your Credit Card payment.

Incorrect information on credit report: If any of your credit information is wrongly captured in your credit report will also affect your Credit Score. Such information includes wrong account open date, ownership details, closure of account and repaid loans etc.
Others: If you have tendency to satisfy most of your needs with loans and make frequent enquires for various loan facilities with various lenders. Hence, this reflects on your Enquiry section of CIBIL Report and utlimately your CIBIL Report will also get impacted.

How to improve CIBIL Score :

To improve cibil score from 600 to 750 or beyond 750, you need to do this following tasks:-

What are the implications of low CIBIL Score;

When your CIBIL score is less than 600, showing any negatives like overdue, NPA status, delay in servicing of EMIs (SMA Status), settlement, written off, restructuring etc. this will impact your fresh loan application. By seeing such negatives of CIBIL report, Banker straight away rejects such loan application. Hence, it is very important to regularly check your CIBIL report and try to improve CIBIL score by above mentioned options.

Some short forms of CIBIL Report :-

SUBST : Substandard (NPA)

DBT : Doubtful (NPA)

LOSS : Loss (NPA)

W/O : Written off or settled transaction

NA : No Credit Activities

NH : No Credit History

000 : Standard. Person is regular in payment of EMIs on its due date. If some numbers are there (like 045, 120, 090) instead of 000 means, the delayed payment of EMIs by that no of days.

XXX : No records available for EMI payments.

CIBIL Score — 1 : No Credit History.

DPD : Days Past Dues (Overdue period)

CIBIL Customer care /CIBIL Self service portal/CIBIL Complaint/CIBIL Dispute resolution

Many people are disappointed due less eligibility for loan for low cibil score. Many of my customers always ask me How to correct cibil score or how to clear cibil problem. Now, you can initiate a cibil dispute online with CIBIL for inaccuracies in personal data, account ownership, overdue status which reflects in your CIBIL Report.

CIBIL does not charge for these services. You can raise a Dispute directly by writing it to CIBIL at TransUnion CIBIL Limited, One Indiabulls Centre, Tower 2A, 19th Floor, Senapati Bapat Marg, Elphinstone Road, Mumbai — 400 013. However, for early disposal of your request, process your request online through https://www.cibil.com/dispute.

If you have any dispute regarding your CIBIL report, approach the CIBIL online or through written request. CIBIL then will approach the lender to which the complaint pertains for CIBIL Report correction. Lenders then review the dispute given by CIBIL and accordingly accept or reject the dispute. If the Lender accepts the dispute and replies the correct information to CIBIL, CIBIL then finally updates the information / said report on its portal.

Lenders usually submit the data to CIBIL by every 30–45 days. If you want to check data of any of your newly opened /closed loan account, then you should wait for 45 days from the date of opening/closing respectively of the said account.

How to check CIBIL score

Earlier, only the CIBIL subscriber Banks was having access of CIBIL report. However, now anyone can access their CIBIL through CIBIL site without any charges. You can do CIBIL score check from Bajaj Finance or site like Paisa Bazar. This will help you to check and improve CIBIL Score.

Originally published at https://loans-review.com on December 8, 2020.