Factors affecting your CRIF Credit Score and How to Increase it

To assess your financial profile, lenders may evaluate your credit score from CRIF High Mark. This is a leading credit bureau in India and one of the four bureaus that lenders rely on to check a borrower’s reliability and readiness for new credit. 

A good CRIF score can support you in getting the loan amount you desire at pocket-friendly rates. So, read on to learn more about it as well as some effective strategies to increase your CRIF score. 

What is the CRIF Credit Score based on?

The credit score from CRIF ranges between 300 and 900. This score is based on various factors, with a stronger CRIF score indicating more responsible credit behaviour and a higher likelihood of getting a loan. 

Here are the factors that affect your CRIF score. 

• Payment History: Refers to the timely payments of your EMIs, credit card bills and other dues
• Credit Duration: Refers to the age of your credit accounts, reflecting how well you have been managing your finances during this period
• Credit Mix: An ideal mix of secured and unsecured loans is crucial to enhance your CRIF score 
• Credit Utilisation Ratio: Refers to the amount you use from the credit limit extended to you by the lender 
• New Credit Applications: Making multiple credit inquiries in quick succession can hurt your credit score

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What is a Good CRIF Score and why does it matter?

When you repay credit responsibly and make other smart moves, you can build a high CRIF score. Banks and other financial institutions generally consider a score of 700 and above as a good CRIF score. 

Here are the benefits of having a high CRIF credit score:

• It ensures a higher possibility of your getting a loan or credit card 
• Lenders generally offer lower interest rates to those having high CRIF scores
• A stronger credit score can also translate to a higher credit limit and loan amount 
• You can leverage your higher credit score to negotiate better terms for your loan

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How to increase your CRIF Credit Score

If your CRIF score is lower than 700, it is necessary to employ certain strategies to improve it. Follow these strategies:  

Review your Credit Report regularly

The foremost step in repairing your credit score is to check your credit report regularly. Tracking your report helps you to identify good credit habits and eliminates the ones that bring your score down. 

There may also be inaccuracies in your credit report, which can decrease your score. If this happens, you can file a dispute with the credit bureau and get them rectified at the earliest.

Repay your dues on time

An important factor that may significantly bring down your CRIF score is defaulting on a loan or credit card or making late payments. It is crucial to make timely repayments to ensure your credit score improves.  

Maintain a low Credit Utilisation Ratio

One of the main reasons for a low CRIF High Mark credit score can be a higher-than-ideal credit utilisation ratio. By maintaining your credit utilisation ratio below the 30% mark, you can improve your CRIF score.  

Avoid multiple credit requests

If you make multiple applications for loans or credit cards in quick succession, it can negatively impact your credit score. So, avoid filling out application after application within a short span to avoid reducing your CRIF score. 

Diversify your Credit Mix

Having a varied credit experience also impacts your CRIF positively, which means taking on both collateral-free and secured loans. However, ensure you apply for different types of loans only if you are confident of repaying them on time.

In conclusion, a high credit score is a prerequisite if you wish to avail of a loan. So, it is often difficult for those who are new to credit or have a low score to avail of a loan. However, if you find yourself in a spot, you can rely on Fibe. Our alternate credit scoring mechanism allows even those who have no or a low score to get access to affordable loans. 

Apply online for our Personal Loans to get up to ₹5 lakhs with a simple application process and minimal paperwork. Download the Fibe Personal Loan App or register on the website to start your journey!

FAQs on How to Increase CIRF Score

Why is my CRIF score low?

There can be several factors resulting in a low CRIF score. These include late repayment, high credit utilisation ratio, multiple credit requests in a short span and more. 

What affects the CRIF score?

Many factors affect your credit score from CRIF, including repayment history, credit duration, credit mix, credit utilisation ratio, new credit inquiries, etc. 

Is CRIF RBI Approved?

Yes, CRIF High Mark is one of the four credit bureaus approved by the Reserve Bank of India.