Whether you aspire to buy a dream home, fund your child’s education, or embark on that long-awaited vacation, a strong CIBIL score can make all the difference. But here’s the catch โ€“ beyond the conventional wisdom of paying bills on time, there’s a fascinating world of surprising secrets that few are aware of!ย 

In this post, we will cover not just the basics but also the lesser-known, hidden aspects ofย your CIBIL score and report.ย 

Read on!

CIBIL Score and Report – A Primer

CIBIL, or TransUnion CIBIL, is the nodal agency that keeps track of every borrower’s credit history. It assigns a three-digit number between 300 and 900 that reflects a borrower’s credit profile. If you have an active credit profile and repay your loan or credit card bills timely, your CIBIL score will be high, and vice versa.

8 Secrets of CIBIL Score to Check Out

The following are the top eight incredible secrets ofย the CIBIL score and report:

  1. Credit Utilisation Ratio – The Silent Influencer

Beyond just paying your credit card bills on time, the amount of credit you use also has a significant impact on your CIBIL score.ย 

The credit utilisation ratio, which is the percentage of your available credit that you’re using, is a crucial factor. Keeping this ratio low, ideally below 30%, can have a positive effect on your score. High credit utilisation could indicate that you heavily rely on credit, making you appear risky to lenders.

  1. Variety of Credit Types Matters

Having diverse types of credit in your financial history can positively influence yourย CIBIL score and credit report. While credit cards are common, having a mix of instalment loans like personal loans or car loans can also demonstrate responsible credit management. Lenders appreciate borrowers who have experience handling different types of credit responsibly.

  1. Recent Credit Activity Can Affect Your Score

Every time you apply for a loan or credit, a “hard inquiry” gets generated on your credit report. Multiple hard inquiries within a short period can negatively impact your CIBIL score, which may indicate increased credit risk. Be cautious about applying for multiple credit cards or loans simultaneously, especially if you plan to take out a major loan like a home loan in the near future.

  1. Length of Credit History is Vital

The length of your credit history also influencesย your CIBIL score and report.ย A longer credit history demonstrates a track record of credit management, which gives lenders more data to assess your creditworthiness. If you are new to credit, try to keep older credit accounts open, even if you don’t use them frequently, as they can positively impact your score.

  1. Loan Settlements Can Leave a Mark

Loan settlements are considered a sign of credit risk by lenders, as they indicate difficulties in repaying debts in full. This is why it’s crucial to clear your debts entirely or negotiate a settlement with your lender while keeping your credit score in mind.

  1. Joint Accounts Share Responsibility

When you have a joint account with someone, their credit behaviour can also influence yourย CIBIL score and report. If the other account holder has a low credit score or defaults on payments, it can drag down your credit score as well. Joint account holders must maintain transparency and communicate effectively to avoid any adverse impacts.

  1. CIBIL Reports Can Contain Errors

Yourย CIBIL score and reportย are compiled based on information provided by lenders. Sometimes, errors can occur due to data entry mistakes or outdated information.ย 

This is why it becomes crucial to check your credit report regularly. You can useย free CIBIL scorechecker platforms for any discrepancies and dispute inaccuracies with CIBIL to ensure an accurate credit profile.

  1. Consistency and Patience are Key

Building a healthyย CIBIL score and reportย takes time and consistent financial behaviour. Timely payments, responsible credit utilisation, and avoiding defaults are essential practices. So focus on demonstrating discipline and patience over time- this will lead to a higher credit score and better credit opportunities.


Understanding the secrets behind yourย CIBIL score and reportย can empower you to take control of your financial future. By maintaining a diverse credit mix, managing your credit utilisation ratio, and being mindful of your credit activities, you can ensure a positive impact on your CIBIL score.ย 

Regularly monitoring your credit report and addressing any discrepancies promptly will further safeguard your financial standing. Armed with this newfound knowledge, you can work towards achieving and maintaining a stellarย CIBIL score and report, opening doors to better financial opportunities and a secure future.

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