Key takeaways

  • On-time payments and low utilization are the biggest drivers of your score.
  • Keep usage under about 30% of your limit, and pay before the statement date to lower the reported balance.
  • Avoid multiple card or loan applications close together.
  • Keep your oldest card open, and check your credit report for errors at least once a year.

A credit card is one of the fastest ways to build a good credit score, and one of the fastest ways to damage it. The difference is a handful of habits. Here's what moves your CIBIL score and exactly what to do.

What your score is based on

CIBIL scores range from 300 to 900. CIBIL doesn't publish an exact formula, but personal-finance sources commonly describe these factors, roughly in order of importance:

  1. Payment history: whether you pay on time. By far the most important.
  2. Credit utilization: how much of your credit limit you use.
  3. Length of credit history: how long your accounts have been open.
  4. Credit mix: a mix of secured loans (home, car) and unsecured credit (cards, personal loans).
  5. New credit enquiries: how often you've applied for credit recently.

8 practical ways to raise your score

1. Never miss a due date

Set up auto-debit for the total amount due. Under RBI rules, you're only reported past due if payment is more than 3 days late, but a 30-day delay can hurt your score significantly and stays on your report for years.

2. Keep utilization under about 30%

On a ₹1 lakh limit, keep your statement balance under ₹30,000. Lower is better. Check yours with our utilization calculator.

3. Pay before your statement date

The balance reported to bureaus is usually your statement balance. Paying down part of it a few days before the statement is generated lowers reported utilization, even if you always pay in full afterwards.

4. Ask for a higher limit, then don't spend more

A higher limit with the same spending lowers utilization. Accept pre-approved increases, or request one after 6–12 months of good history. RBI rules mean limits can't be increased without your consent.

5. Space out applications

Every card or loan application triggers a hard enquiry. Several in a short period can lower your score and make lenders cautious. Check eligibility first with our eligibility calculator, which doesn't touch your credit report.

6. Keep old cards open

Your oldest card anchors your credit history. If it has a fee, ask for a downgrade to a free variant rather than closing it. See how to close a card for the trade-offs.

7. Don't rely on the minimum due

Paying only the minimum avoids a late mark, but carrying a balance raises utilization and costs about 3.5–3.75% a month in interest. See minimum amount due explained.

8. Check your report and fix errors

You can get a free credit report from each bureau once a year. Look for accounts you don't recognise, wrong late payments or cards shown as open after closure. Dispute errors with the bureau and the lender. Credit bureaus are covered by the RBI Ombudsman scheme too.

Starting from no history or a low score

  • No history: start with a secured card against a fixed deposit, use it lightly and pay in full.
  • Low score after defaults: clear or settle dues (settlement is recorded as "settled", which hurts less than unpaid but more than paid in full), then rebuild with a secured card and perfect payments.

How long does it take?

There's no fixed timeline. Positive habits typically show up over several months, and serious negatives like 90+ day delays take much longer to fade. Consistency matters more than any trick. Beware of anyone offering to "fix" your score for a fee.

A 12-month plan

  • Month 1: get your free credit report and dispute any errors. Set up auto-pay for the full amount on every card.
  • Months 1–3: bring utilization below 30%. Pay down balances before statement dates.
  • Months 3–6: make no new applications. Keep paying on time.
  • Months 6–12: consider a limit increase request and review your score. Keep old cards active with small, auto-paid charges.

FAQs

What is a good CIBIL score?

750 and above is generally considered good and gives you the best chance of approval and better terms.

Does using a credit card increase my CIBIL score?

Using it responsibly (paying on time and keeping utilization low) builds a positive history and can improve your score over time.

Does checking my own CIBIL score reduce it?

No. Checking your own score is a soft enquiry and doesn't affect it. Only applications for credit create hard enquiries.

How much does one late payment affect my score?

It depends on how late and your overall profile. Payments within the 3-day window aren't reported past due, but a 30+ day delay can cause a significant drop.

Can I remove a late payment from my credit report?

Only if it's incorrect. Genuine late payments stay on your report. Dispute errors with the bureau and the lender, and escalate to the RBI Ombudsman if needed.

Does an add-on card improve my own score?

No. Add-on card activity reports under the primary cardholder. To build your own score, you need a card in your name.

Will closing old cards improve my score?

Usually the opposite. Closing old cards can raise utilization and shorten your history. Keep them open if they're free.

Sources

About the author

Deepak

Founder & Editor, CardPicker

Deepak founded CardPicker and writes and fact-checks its credit card guides, comparisons and news.

✓ Fact-checked 26 September 2026Prices, dates and card terms in this article were checked against issuer websites, official pages and news reports listed under Sources. Card figures come from our database, which is re-verified regularly. Offers change often, so confirm on the issuer's site before you buy or apply. Spotted an error? Tell us.