Your credit score (CIBIL score) is one of the most critical factors lenders check when you apply for a loan or credit card. A high CIBIL score indicates healthy financial habits and makes you eligible for lower interest rates.
Late payments are the biggest threat to your credit score. Ensure all repayments are done on or before the due date. Setting up auto-debits is a great way to avoid missing dates.
Try to use less than 30% of your total credit limit. High credit card utilization signals a debt-heavy lifestyle to credit bureaus.
Every time you apply for a loan, banks perform a "hard inquiry." Too many inquiries in a short duration will pull down your score.
Errors in spelling, account status, or wrong reports of delayed payments can hurt your score. Check your credit report regularly and raise disputes if needed.
Having a balanced mix of secured (home, auto) and unsecured loans (personal, card) is positive for your profile.