What is a Good Credit Score and Tips to Maintain It

The credit score or Credit Information Bureau Limited (CIBIL) score reflects the customer’s credit behavior. Whether an individual has a good payment history, has repaid the loans on time, the length of the credit history, and the credit mix determine the individual’s overall score. Customers should try to maintain a good score within the CIBIL score range to get their new loans approved quickly, get low-interest rates and be eligible for other benefits. Before beginning with how to improve CIBIL score, let’s understand what a good credit score is. 

What Is a Good Credit Score?

According to the CIBIL score range, a 300 to 600 score is considered a bad credit score. If you have a credit score between 600-649, you have a low score. Between 650-700 is an average score, and 700-749 is a good score. You have an excellent score if you can get between 750-900. So based on the above scores, 700-900 is a good credit score, and with this number, you can get your loans approved faster and be eligible for low-interest rates. 

How to Improve CIBIL Score?

If you’re wondering ‘how to Improve CIBIL score,’ there are many ways to do so. But you first need to be aware of how the scoring system works. Once you know them, you must follow the rules to maintain a good score within the CIBIL range. Let’s look at five tips to follow to prevent your CIBIL score from suffering. 

  1. Make Timely Payments

Make a habit of paying bills on time. If you delay the bill payment, it gets reported to the credit bureaus, resulting in a low score. You can set the bill payment alarm on your phone to avoid delay. 

  1. Spend Less Than You Earn

Make sure to earn more than you are spending. This way, you can maintain a good score within the CIBIL score range. If you exceed your spending, additional debt will be collected. The best way to handle this problem is by creating an emergency fund. By doing so, you can spend limited money from your credit card. 

  1. Check The Credit Utilisation Ratio

To keep your credit score balanced in the CIBIL score range, ensure that your credit utilization ratio is 30%. This is a calculation method wherein your credit usage is checked against the balance in your account. 

  1. Keep Your Old Credit Card Open

Keep the old credit cards open. This is because the credit card issuer informs the credit bureau when you close it. The credit bureau then reduces the credit score. Another reason you should not close the old accounts is that the credit score combined in three credit cards gets diminished. For instance: If you have ₹ 3000 on each credit card, and you close one, then your credit limit comes down to ₹6000, affecting the overall score. 

  1. Balance the Borrowings

Do not borrow many loans at the same time. Do not take a car loan immediately if you want to borrow a home loan. This can delay the loan repayment time, affecting the overall score. 


By following the steps on how to improve CIBIL score, you can increase your credit score and enhance your credit report. Make it a habit to follow the steps specified above every time you use a credit card to improve your score with time. 

Once you have a good credit score, you can get approvals for a loan faster and fulfill your dream of achieving your desired home, car, and other needs. Check the credit score from time to time and take these measures accordingly to avoid facing an alarming situation with your credit card score.