The Five Factors
CIBIL scores are driven by: payment history (35% weight), credit utilisation (30%), age of credit history (15%), credit mix (10%), and new credit inquiries (10%). For credit card holders, the first two are the most controllable.
Credit Utilisation: The Key Number
Maintain utilisation below 30% of your total credit limit across all cards. If your combined credit limit is ₹5 lakh and you regularly use ₹2.5 lakh, your utilisation is 50% — this hurts your score. The fix: either increase your limit or spread spending across multiple cards.
Common Mistakes
Never miss a payment — even ₹1 minimum due. A single late payment stays on your credit report for 7 years. Closing old credit cards reduces your credit history length and total available limit — both hurt your score. If a card has no annual fee, keep it open even if you don't use it.