How to Fix a Bad CIBIL Score | Real Story + Expert Tips | CA Vikas Jain

Is your CIBIL score low and ruining your chances of getting a loan, credit card, or financial freedom?

Don’t panic! You’re not alone — and the good news is, you can fix it. In this story-driven guide, we walk you through how to repair your credit score, with real-life examples, expert insights, and money lessons from the world’s most popular financial books.

What is a CIBIL Score?

A CIBIL Score is a three-digit number between 300 and 900 that reflects your creditworthiness. It is calculated by TransUnion CIBIL, one of India’s leading credit bureaus.

 A score above 750 is generally considered excellent for loans and credit card approvals.

Common Mistakes That Hurt Your Score

• Late EMIs or credit card payments
• Using more than 30% of your credit limit
• Applying for multiple loans at once
• Ignoring errors in your credit report
• Not having a mix of secured and unsecured loans

Step-by-Step Tips to Improve Your Credit Score

1. Pay EMIs & Credit Card Bills on Time

Your payment history holds the maximum weight (35%) in your CIBIL score.

2. Keep Credit Utilization Below 30%

Don’t max out your credit cards. Try to spend only a third of your limit.

3. Avoid Multiple Loan Applications

Too many hard inquiries signal financial stress. Apply only when needed.

4. Check and Correct Errors in Credit Report

Download your CIBIL report for free once a year and correct any wrong entries.

5. Maintain a Healthy Credit Mix

Have a good balance of secured (like home loan) and unsecured (like credit card) credit.

6. Don’t Close Old Accounts

A longer credit history works in your favor.

Real Case Study: Neha’s Journey from 600 to 720

Meet Neha, a 29-year-old working professional from Mumbai. Due to a job loss during the pandemic, she missed a few credit card payments. Her CIBIL score dropped from 780 to 600.

What She Did to Fix It:

• Started paying all bills on time
• Limited credit card usage to below 30%
• Stopped applying for new credit
• Monitored her credit score every 3 months
• Built an emergency fund

Within 12 months, her score jumped to 720, and her loan got approved!

Money Lessons from Top Finance Books

From Rich Dad Poor Dad:

“The rich pay themselves first.” – Neha began saving before spending.

From Let’s Talk Money:

“Have an emergency fund.” – She built a 6-month cushion.

From The Psychology of Money:

“Wealth is what you don’t see.” – Controlling spending became her biggest tool.

Final Thoughts from CA Vikas Jain

“Fixing your CIBIL score is not a one-day job, but with discipline, patience, and smart habits, it’s absolutely achievable. Don’t let your past mistakes define your financial future.”

Need Help

Our team at FinanceSeva can help you build a personalized credit improvement plan.

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FAQs

Q1. How often should I check my CIBIL score?

You should check it at least once every 3-6 months to stay informed and correct any errors early.

Q2. Is it bad to have multiple credit cards?

Not necessarily. But using too much of your total credit limit or missing payments can damage your score.

Q3. Will settling a loan help improve my score?

No. Settled loans reflect negatively. Always try to close loans with full payment.

Q4. How long does it take to improve a CIBIL score?

With consistent effort, 6 to 12 months can show noticeable improvement.

Q5. Can FinanceSeva help me fix my CIBIL score?

Yes! Our team offers personalized credit improvement support and financial guidance.