A good CIBIL score is your gateway to better loans, premium credit cards, and attractive interest rates. While most people know the basics, like paying bills on time and keeping credit utilisation low, some lesser-known strategies can boost your credit score faster and smarter. In this guide, we’ll cover proven methods and hidden hacks to help you increase your CIBIL score fast, unlock better financial products, and secure your financial future.
Why Your CIBIL Score Matters
Your CIBIL score is a three-digit number that reflects your creditworthiness. Banks and lenders use it to decide whether to approve your loan or credit card application and at what interest rate. A higher score means better chances of approval and lower interest rates.
Top 13 Secret Hacks to Increase CIBIL score fast
1. Become an Authorised User on Someone Else’s Credit Card
If a family member or close friend has a strong credit history, ask them to add you as an authorised user on their credit card. This can instantly boost your credit history and improve your score without you having to spend a rupee.
2. Get Credit for Utility and Phone Bill Payments
Did you know that timely payments of your utility bills, mobile phone bills, and even subscription services can help improve your credit score? Services like Experian Boost report these payments to credit bureaus, adding positive payment history to your profile.
3. Regularly Check and Dispute Errors in Your Credit Report
Mistakes in your credit report can drag your score down significantly. Check your CIBIL report at least once a year and dispute any inaccuracies, such as incorrect payment dates, accounts that don’t belong to you, or closed accounts showing as open.
4. Increase Your Credit Card Limit Without Increasing Spending
Request your bank to increase your credit card limit. This reduces your credit utilisation ratio (the percentage of your available credit you use), which is a major factor in your CIBIL score. Just be sure not to increase your spending accordingly.
5. Keep Your Oldest Credit Card Active
The length of your credit history matters. Don’t close your oldest credit card, even if you don’t use it often. Make small purchases occasionally and pay them off to keep the account active.
6. Diversify Your Credit Mix
Having a healthy mix of secured loans (like home or auto loans) and unsecured credit (credit cards, personal loans) shows lenders you can manage different types of credit responsibly.
7. Space Out Loan and Credit Applications
Each loan or credit card application generates a hard inquiry, which can lower your score temporarily. Avoid applying for multiple loans or cards in a short period. When rate-shopping, ask lenders for a “quotation search” instead of a full credit check.
8. Make Multiple Payments in a Month
Instead of paying your credit card bill once a month, make smaller payments throughout the month. This keeps your reported credit utilisation low and can positively impact your score.
9. Leverage Pre-Approved Loan and Credit Card Offers
Pre-approved offers usually involve soft inquiries that don’t affect your credit score. Accepting these offers and managing the credit responsibly can help build your credit history.
10. Take Small Loans and Repay Quickly
If your credit history is thin, taking a small personal loan or using a credit builder product and repaying it on time can add valuable positive data to your credit report.
11. Set Up Automatic Payments
Avoid late payments by setting up auto-pay for all your EMIs and credit card bills. Even a single missed payment can significantly harm your credit score.
12. Avoid Closing All Debt at Once
Suddenly paying off all your debts can sometimes lower your credit score temporarily, as lenders see it as a change in credit behaviour. Maintain a steady repayment schedule.
13. Monitor Your Credit Report Regularly
You’re entitled to one free CIBIL report every year. Use it to track your progress, spot errors, and understand how your actions affect your score.
Bonus: Frequently Asked Questions (FAQs)
Q: How long does it take to increase my CIBIL score? A: With consistent effort, you can see improvements in 3 to 6 months, but major changes might take up to a year.
Q: Does paying utility bills improve my CIBIL score? A: Yes, if those payments are reported to credit bureaus through services like Experian Boost.
Q: Can applying for multiple loans at once hurt my score? A: Yes, multiple hard inquiries in a short time can lower your score. Space out your applications.
Q: Is it better to close old credit cards? A: No. Keeping old accounts open helps maintain a longer credit history, which benefits your score.
Quick Reference Table: Smart Ways to Boost Your CIBIL Score
Strategy
Why It Works
Estimated Timeframe
Authorized User Addition
Adds positive credit history
1-2 months
Utility Bill Reporting
Adds payment history
1-3 months
Disputing Errors
Removes negative marks
30-45 days
Increase Credit Limit
Keeps utilisation low
Immediate
Keep Old Cards Active
Lengthens credit history
Ongoing
Diversify Credit Types
Shows responsible borrowing
3-6 months
Multiple Payments Monthly
Authorised User Addition
1-2 months
Small Loans, Quick Repayment
Builds positive history
3-6 months
Final Thoughts
Improving your CIBIL score is a mix of smart habits and strategic moves. Beyond paying bills on time, these lesser-known tricks can help you increase your CIBIL score fast and open doors to better financial products. Start today, stay consistent, and watch your credit score climb!
