7 Proven Ways to Increase your CIBIL Score to 800+

By | October 4, 2016

CIBIL score is becoming very vital in recent times to get approved for anything and everything right from a credit card to Housing loan, card loan, etc. That being said, its very important to keep your scores high so you can be sure about getting approved for loans in future without any surprise.

cibil score

Ways to Increase your CIBIL Score (Indian Credit Score)

As you might know, a CIBIL score of 750 and above increases your probability for getting approved for a loan or credit card. Here i am sharing my experience in attaining 800 and above score which is considered excellent by the lenders.

Here are 7 Effective Ways to Improve CIBIL score

1. Get Secured Credit Cards:

Secured credit cards are the ones issued against FD and its a surefire way to improve your CIBIL mainly because they don’t pull a hard inquiry on your CIBIL account. If you use your secured credit cards properly, you can expect a good rise in score within a year.

My Experience: I had been using ICICI platinum credit card for about 4 yrs and Axis bank insta easy credit card for around 3 yrs both of which contributed a lot to my credit score as i had always paid my bills on time without a single default. Both of them were secured credit cards.

2. Take an Housing Loan

While credit cards and personal loans are considered as a “bad credit”, Housing loan is considered as a “good credit” and if you have an active housing loan on your name or as a joint holder, it contributes well to your CIBIL score positively.

My Experience: It took about 1 Yr or so of taking housing loan for my score to go above 800, before which my score was somewhere around 750

3. Educational loan Helps too:

Educational loan is also considered as a good credit. If educational loan doesn’t apply to you, other loans like Car/bike loans and Installment loans are also considered as “good”.

My Experience: My educational loan was active for about 5 years and i closed it recently and i’m sure it should have contributed very much to the score.

Above 3 were the only active loans on my CIBIL records with which i was able to get 800+ CIBIL score (by around 2014 mid). Infact, my Education loan EMI’s were paid with a 3 months delay most of the time which was marked as “STD” on my CIBIL report which means “Payments being made after 90 days” and it doesn’t seem to affect my score at all.

My major credit/loan activities started by around 2009.

Here are few more ways to help you improve your CIBIL score:

4. Credit Card loans like HDFC Insta Jumbo Loan:

HDFC Insta Jumbo Loan is nothing but a credit card loan given on HDFC credit card without reducing your credit limit. Its more like a personal loan, however, its reported to CIBIL as a “credit card” which is a good thing and moreover, you don’t get any hard inquiry on your a/c when you avail this Jumbo loan.

Am unsure how other banks deal with credit card loans, however, if you’re given a credit line without affecting your credit limit it has to work more or less in a similar way.

5. Increase the Age of your credit history:

You’ll lend 10 Lakhs to your childhood friend than to someone whom you know a yr back. Right? That’s because of the trust. It applies to Credit history too. Your oldest loan, preferably credit card can help to improve your CIBIL score.

Make sure you never close one of your oldest credit card accounts. It not only adds weight to your score, its also a good sign for new lenders to see how loyal you are and how good you can repay for a long time.

6. Stay within 30% Credit Limit:

Make sure your expenses are within 30% of your credit Limit. It means the outstanding amount on your card shouldn’t exceed this number. If you spend more, you can always pay in advance to your card a/c to make sure you’re not using much of your limit.

Its however good to go near the credit limit, maybe once, so your bank knows that you need more limit.

7. Keep your Credit Cards Active:

After looking into my friend’s latest CIBIL report, i came to know that his ICICI credit card usage is not being reported to the CIBIL and it was blank in respective months when there were no usage/outstanding on the card.

  • The credit score is all about how you payback the credit you owe.

If you never take the credit, how does CIBIL can rate your credit handling capacity? So, its always good to charge a minimum amount like Rs.500 or so on you card and payback full before due date, so your credit card is reported active to CIBIL and other Credit Bureaus like Experian.

To sum up, improving your CIBIL score takes time. you cannot increase your CIBIL score instantly overnight, which is the sad part of the system. It took me over 6 years to cross the 800 mark with very low activity. Maybe if you have higher activities with mix of Good/bad credit, you can climb the ladder faster.

What’s your CIBIL score and what do you think helped to get you there? Share your views in comment below.

29 thoughts on “7 Proven Ways to Increase your CIBIL Score to 800+

  1. Nandhakumar

    Which is preferred credit buarues for banks like.cibil,experian, credit sudhaar

    1. Siddharth Post author

      You have to Pay Rs.500 or so and get it from CIBIL website.

      1. Harish

        Got it, thanks.

        But the report doesnt indicate my Home Loan details. The loan is on my name along with my mother’s but the loan bank account just on my mother’s name.
        I wonder if this could be made to reflect in my CIBIL report, as I have been doing the transactions from my account.

    2. Ashwath Shetty

      One time CIBIL Score and Report – 550
      Bi-Annual Subscription – 2 Score Reports – 800
      Quarterly Subscription – 4 Score Reports – 1200

  2. Parth

    Hey Siddharth, thank you very much for an informative and much needed article. I usually spend over the limit of my card (without incurring charges) by paying midway through my cycle. So for example on one of my cards with limit of 1,00,000. I spend around 1,25,000 in a month but my statement is of 45,000 since I paid remainder of the amount on two occasions during the cycle. Will this have any negative on my credit score? (My question with regards to point 6 of your article).

    Also how many cards are recommended limit? I have 3 cards (SC, Amex, Citi). I am planning to get one more, is this wise or not recommended?

    1. Siddharth Post author

      That’s perfectly normal and i used to do it for about 3 yrs or so in the past when the limits were less. Try to reduce the bill to 30k in that case.
      There is not certain said limit. 3 is fine. The more you get, more tough to manage them.

      1. Parth

        Thanks a lot for guiding all of us Siddharth. :). I hope you upload your points earning strategy soon 🙂

        1. Parth

          I had to ask you this since number of flights I take has shot up to 6 a month mostly between mumbai to delhi. Which credit card would you recommend for my air ticket purchases? I usually travel Air India but I don’t mind switching to Jet Airways or even Vistara if you feel their FF’s are better.

          Thanks a million for this! 🙂

          1. Siddharth Post author

            Highly suggest to use Diners Black. You can redeem the points back to revenue tickets. Keep the FF program miles to play later 🙂

  3. Parth

    Ok second choice please. I don’t want to go to HDFC. I have had the worst of experiences with them. 🙁

  4. Daksh Sharma

    Hi Siddharth,

    I started earning about three months back and have been using my credit card on my salary account since the past 2 months. I don’t like the credit card that I have on my savings salary SC account and get much better rewards through my debit card (about 2% cashback). I’m not inclined to use my credit card instead of my debit card, however, I need a higher credit limit or a CIBIL score to change cards. Any suggestions on how to do that?

    1. Siddharth Post author

      Use the existing card for sometime and then apply from a different bank, maybe HDFC, you should be approved and you can improve the CIBIL score from there. Keep charging a little bit every month on your SC card to keep it active in CIBIL’s eyes.

  5. Ashwath Shetty

    Hi Siddharth, wonderful article. I dont have any credit cards, just an education loan. Infact I’ve not applied for any other loan in the last 10 years. However I started a business 1 year back & took a bussiness loan. This was from a public bank. My annual turnover for the 1st year has been over 50l. However, I checked my credit score today – Its 752. I want to get to a credit score of 800 and above to be safe. What is your advice – should I get a credit card or get an fd? Any suggestions?

    1. Siddharth Post author

      750 is good.
      Start with 2 or 3 cards FD or unsecured. Anything is fine.

  6. Harsh yadav

    Just Curious.
    CIBIL says “Ideally” the usage should be 50% so as to get the credit limit increased.
    Whats that thin borderline of “ideal” usage ??

  7. Sai

    I have a zero balance saving salary account of HDFC, does it impact my credit score if i don’t maintain balance of 5k/10k like normal savings accounts??

    since it is zero balance account it should not but recently one banker told me to maintain min balalnce though it is zero balance account?

    Just wanna check with you whether his perception is right or wrong?

      1. Sai

        does Cheque bounce affect CIBIL? if yes, upto what extent and how they calculate?

  8. Kishorkumar Balpalli

    Hi Siddharth!

    Enlightening piece of article indeed!
    You may also improve your CIBIL score by regular credit report checks. First, get a copy of the report and check for errors. Particularly check whether there are any late payment charges erroneously levied against your accounts. Also, ensure that all amounts you owe for each of the open accounts are correct. Resolve the errors immediately. Call up the reporting agency and the credit bureau or shoot an email asking for a clarification.

  9. Mahendra

    Hi Siddharth,
    How will my CIBIL score impacted in below case.

    My bill generation date is 7th of every month and my credit card limit is 1lac. If I spend 1lac on 8th of the month and pay the same amount on 6th of following month i.e., just one day before bill generation date. I know CUR should be 30% for good CIBIL rating. In this cases, what will happen? Will My CIBIL score decresed or intact?

    Thanks in advance.

    1. Siddharth Post author

      Nice Question Mahendra.
      It will affect badly if you keep doing same every month.

      Reason is,
      Banks report the usage on last day or first day of the month and in your case it will show 100% at that time, which is not good.
      However, some do say that it maybe report at any time of the month.

      So its better to keep the usage under 30% at all time 🙂

  10. Mayank Panchal

    I need a credit card but because of no credit history it doesnt reflect my CIBIL score and bank rejected the application. Can you please tell me how to get CIBIL score to go for credit card or to apply any loan.


    1. Siddharth Post author

      Take FD based cards and build your CIBIL score.
      Check the above article for link to FD based cards in India 🙂

  11. Mayank Panchal

    Hello Siddharth,
    Thanks for your reply. Can you please tell me how much time it will take using FD based secured credit card to build CIBIL score. I also got to know about DCB bank provide secured credit card with less amount FD so is it good to go with because I didnt heard about this bank before.



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