CIBIL score is a reliable method that reflects your creditworthiness and financial management skills. The score is taken into consideration by lenders before approving a loan or trusting you with any other favours. There is a Free cibil score checking facility online that you can use to keep track of your score. Below are the mistakes that result in a decrease in the CIBIL score. We have also provided tips on How to improve cibil score. Please read on!

Top Reasons for Low CIBIL Score

1. Delayed or skipped payments

After borrowing a loan from a lender, it is important to repay the monthly loan amount on time. If you fail to do so, it will adversely affect your creditworthiness and bring down your Free Credit score for at least a few years. 

2. Missed bill payments:

Amidst a hectic schedule and other engagements, it is easy to forget your electricity or phone bills. The result of this is long-term damage to your credit score. This is because credit reporting agencies track the payments of your utility bills. Any delays are noted in your credit report, affecting your credit score negatively. To prevent this, you may look at auto-debit options to ensure your bills are spontaneously cleared on time. 

3. No credit history:

Even though it may seem confusing, credit history is needed to secure credit. You may not have a credit history if you never possessed a credit card or spent on utilities like electricity or a telephone connection in your name. You can overcome this hurdle by applying for a secondary credit card with a known person with a high credit score. This way, you can start building your credit history and take advantage of their high score at the same time. 

4. Taking too many unsecured loans:

Taking too many unsecured loans is not wise if you care about your CIBIL score and want to keep it high. Maintaining a healthy balance between the number of secured and unsecured loans you apply for is best.

How to improve your CIBIL score?

If you are looking at increasing your score, below are a few Free cibil score-increasing steps you can take:

Lengthen your credit history by maintaining older credit cards:

Continue maintaining your older credit cards as long as you can pay all of your bills on time. This will ensure you retain your credit history, building a long and solid overall history and increasing your CIBIL score.

Request for an increased credit limit if required:

Your credit score is significantly impacted by your credit utilisation ratio. The more you limit your credit within your allotted value, the better it is for your CIBIL score. If you tend to reach your limit too often, you can request your lender to increase it according to your expenses.

Do not take too many loans at the same time:

You must apply for a minimum number of loans in a fixed period of time. To keep up your score, repay the previous loan before applying for a new one.

Evaluate your CIBIL report regularly: 

Sometimes CIBIL may make mistakes with your reports, such as noting down incorrect information regarding your loan repayment time. Therefore, you must check your CIBIL report from time to time so that you report any errors and get those rectified immediately.


No matter how low your credit score is, if you take the measures mentioned above for a period of time, you will find that your CIBIL score is starting to increase for good. As you are now acquainted with the How to improve CIBIL score & reasons that lead to a low CIBIL score, you can also make sure you avoid those mistakes at all costs.