A good CIBIL score is paramount, as the possibility of your loan application getting approved rests upon it. Generally, a CIBIL score ranging between 750 to 900 is considered good by the financial institution. A CIBIL score below the limit of 550 is bad and banks avoid lending out to persons having such a score as it denotes bad credit history in the past.
However, in case you have a low or a risky CIBIL score you can still get your application approved by increasing your CIBIL Score to a healthy position. The following ways will help you significantly improve your CIBIL Score:

Keep a Track of Your Payment Schedule:
The biggest mistake that most people make is not keeping track of their dues. By doing so, not only they are missing payments, but are hurting their CIBIL score as well. If you start paying your bills and debts on time, you will immediately see a significant rise in your CIBIL Score. A good habit is to religiously make payments for the dues at least five working days before your due date.

Don’t Over Utilize your Credit Limit:
The way you spend your credit card also affects your CIBIL Score to a great extent. Your CIBIL score will drop fast if you utilize your credit card to its full limit. Your monthly credit card bill should not be any more than 50% of your limit. Using more than 50% of your card limit indicates that you are missing spending discipline and unable to keep aside enough funds to pay off your debts. This action can negatively affect your credit score.

Avoid Applying for Multiple Loans at a Short Span of Time:
You should avoid making too many applications for loan and credit cards in a short period of time. This is because, every time you apply for a loan, banks ask CIBIL for a credit report and too many inquiries also bring your score down. This shows your credit hungry behavior and appallingly hits your CIBIL score.

Check your CIBIL report regularly:
There are two benefits of checking your credit report regularly. Firstly, you can identify the loans or credit payments where the defaults or delayed payments are bringing your credit score down and taking the corrective measures. Secondly, you can check for any errors such as non-posting of any payment toward a loan, etc. in the credit report and approach the CIBIL on-time to get it corrected.

The Bottom Line:
The above-mentioned points will surely help in improving your credit score. Having a healthy credit score is a good indicator of one’s financial discipline and effective financial management.