Credit Health

Mastering Your CIBIL Score: The Path to 800+

A high score can save you 1-2% on loan interest rates. Learn the 4 factors that control your credit destiny.

By Editorial Team • Updated: Jan 2026 • Essential Guide

1. Why CIBIL Matters (The Interest Rate Game)

Banks now use "Risk-Based Pricing." Your loan interest rate is directly linked to your score.

CIBIL Range Home Loan Rate Personal Loan
750 - 900 (Excellent) 8.50% (Best) 10.5%
700 - 749 (Good) 8.75% 12%
Below 650 (Poor) 9.50%+ or Rejected 16%+

2. The 4 Factors Affecting Your Score

  • Repayment History (35%): Did you pay EMIs and Credit Card bills on time? Even one missed payment stays on record for years.
  • Credit Utilization (30%): How much of your credit card limit do you use? Ideally, keep it below 30%. Maxing out your card screams "Credit Hungry."
  • Credit Mix (10%): A mix of Secured (Home/Car loan) and Unsecured (Credit Card) loans is considered healthy.
  • New Inquiries (10%): Applying for too many loans at once reduces your score.

3. How to Improve Your Score

1. Automate Payments: Set up auto-debit for minimum due to avoid late fees.
2. Don't Close Old Cards: The length of credit history matters. Keep your oldest credit card active even if you don't use it much.
3. Check for Errors: Download your report from CIBIL/Experian once a year. If there is a wrong entry (e.g., a closed loan shown as open), raise a dispute immediately.