Tips to Maintain CIBIL Score of 785
A 785 CIBIL score is excellent, and maintaining it requires consistent financial discipline. Here are actionable tips with examples to help you sustain your score:
- Pay All Dues on Time
- Keep Credit Utilization Below 30%
- Monitor Your Credit Report Regularly
- Maintain a Healthy Credit Mix
- Avoid Frequent Credit Applications
- Retain Older Credit Accounts
- Pay Off Outstanding Balances
- Avoid Settling Debts
- Use Credit Cards Wisely
Always pay your EMIs, credit card bills, and utility payments on or before the due date.
Example: Automate a ₹20,000 home loan EMI payment each month to ensure on-time payments and avoid penalties.
Use less than 30% of your total credit limit to maintain a healthy credit utilization ratio.
Example:If your credit card limit is ₹1,00,000, keep spending below ₹30,000. For higher expenses, spread purchases across multiple cards.
Check your credit report quarterly to identify and correct errors or inaccuracies.
Example:If your report mistakenly shows an active personal loan you’ve repaid, file a dispute with the credit bureau.
Balance secured loans (e.g., home loans) with unsecured loans (e.g., personal loans or credit cards).
Example:Manage a ₹10 lakh home loan while responsibly using a ₹1 lakh credit card limit for regular expenses.
Limit new loan or credit card applications to avoid multiple hard inquiries on your credit report.
Example:If you need a personal loan, compare options and apply to one lender instead of submitting multiple applications.
Keep older accounts with a good repayment history active to benefit from a long credit history.
Example:Use your 5-year-old SBI credit card occasionally, even if you now rely on a newer premium card.
Avoid carrying forward credit card balances to reduce interest and improve your credit profile.
Example: If your monthly credit card bill is ₹15,000, pay it in full rather than the minimum amount due.
Always pay the full amount owed on loans or credit cards rather than opting for settlements.
Example: Instead of settling a ₹50,000 credit card debt for ₹30,000, work out a repayment plan with your lender.
Make regular but manageable purchases on your credit card and clear the balance each month.
Example:Use a credit card to pay ₹5,000 for groceries and clear the balance on the due date to build a positive payment history.