Low CIBIL Score? Here Is What Is Causing It And How To Fix It

A low CIBIL score can get your loan rejected or cost you more in interest. Here is what is hurting your score and how to fix it with simple habits.

Many people only discover their CIBIL score matters after a loan rejection.

Source : ABP Live

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Key points generated by AI, verified by newsroom

• Review your credit report for issues affecting your score.
• Prioritize clearing past due payments and avoid late remittances.
• Maintain low credit utilization and limit new credit applications.

If you are planning to take a loan or apply for a credit card, your CIBIL score plays a big role in the approval process. Many people only realise its importance after facing rejection or higher interest rates. The good part is that improving your score is possible with consistent financial habits. It does not require complex steps, but it does demand discipline and awareness. 

By understanding what affects your score and making small changes in how you manage credit, you can gradually move towards a healthier financial profile over time.

What Causes A Low CIBIL Score And How To Fix It?

Your credit profile, maintained by TransUnion CIBIL, reflects your borrowing behaviour. A low score is usually linked to missed payments, high credit usage, frequent loan applications, or errors in your report. The first step is to review your credit report carefully and identify the exact issue.

If delays in EMIs or credit card payments are the problem, clearing dues quickly should be your priority. Payment history has a strong impact, and even a few missed payments can stay on record for up to 36 months. 

Setting reminders or enabling auto-debit can help avoid future delays. If errors like incorrect loan status or duplicate entries appear, raising a dispute with the bureau can correct them and improve your score.

What Habits Help Improve Your CIBIL Score Over Time?

Improving your score depends on building consistent and responsible habits. Keeping your credit utilisation low is important, as using too much of your available limit signals higher risk. Try to use only a portion of your limit and repay on time.

Avoid applying for multiple loans or credit cards within a short period, as this leads to repeated hard enquiries and lowers your score. If you have little or no credit history, start small with a credit card or a manageable loan and maintain timely repayments.

The process is gradual. Visible improvement may take three to six months, and serious issues may take longer. However, steady discipline leads to better loan approvals, lower interest rates, and stronger financial credibility in the long run.

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