Credit Repair: DIY Guide in India
How to Fix a Bad CIBIL Score, Step by Step, for Free!
Introduction: Why Credit Repair Matters
Your credit score (CIBIL/Experian/CRIF) determines if you’ll get loans, the interest rate, and even pre-approved offers. A low score (below 700) can block your dreams of a home, car, or credit card in India. The good news? You can fix your credit score yourself, for free, with some discipline and patience
How Does Your Credit Score Get Damaged?
- Late/missed EMI payments
- Maxed out credit cards (using 90-100% of limit)
- Multiple loans or card applications in a short time
- Settled or written-off loans
- Errors in your credit report (wrong overdue, wrong personal info)
Quick Fact: Just 1 missed EMI can drop your score by 50-100 points and stays visible for 2-4 years!
Steps for DIY Credit Repair in India
Step 1: Get Your Credit Report (for FREE)
- Visit cibil.com or any RBI-licensed bureau (Experian, Equifax, CRIF)
- You are entitled to one free report every year from each bureau
- Carefully check for errors/discrepancies
Common Errors to Watch For
- Loan/credit card marked as unpaid, even after closure
- Payments marked as late but made on time
- Accounts you never opened (possible fraud)
Step 2: Dispute Any Errors Online
- Log in to your myCIBIL account
- Go to 'Credit Report' → 'Raise a Dispute'
- Select the entry and provide correct details/scans of settlement/paid receipts
- CIBIL & lender will verify and correct if genuine; this process takes up to 30 days
Step 3: Pay All Dues on Time (from Now On!)
- Set auto-debit/standing instructions for EMIs and credit cards
- Even one on-time payment each month helps score recovery
- Pay more than the minimum due on cards to show responsible credit behavior
Step 4: Reduce Credit Card Utilization
- Try to keep usage under 30% of limit. Eg: Limit = ₹1 Lakh, spend only ₹30,000/month
- Ask bank to increase your limit (if eligible), which can lower usage ratio
Step 5: Do NOT Apply for New Credit Repeatedly
- Each application is a 'hard inquiry' and drops your score
- Wait at least 3 months between applications; don't reapply immediately after a rejection
Step 6: Keep Your Old Accounts Open
- The age of your oldest credit account adds to your score
- Do not close cards or loans you’ve had the longest (unless with annual fees you can’t afford)
Step 7: Add Good Credit Slowly
- Consider a secured credit card against FD (low risk, guaranteed approval)
- Use it for basic expenses, and pay in full every month
Case Study: Anita's Credit Repair
- 2019: Lost job, missed 3 EMIs on personal loan, CIBIL dropped to 620
- 2020: Got new job, paid pending dues, set up auto-pay
- Disputed a wrongly-marked late payment from lender, got it corrected after 1 month
- Reduced CC usage to 25%, paid 3x minimum due for 8 months
- By mid-2021, her CIBIL recovered to 755 and she got a home loan approved
Recovery Timelines (What to Expect)
| Default Type | Typical Recovery Time |
|---|---|
| Missed EMI (1–2 times) | 3–6 months |
| Credit card maxed out | 6–12 months |
| Loan/credit card settlement | 2–4 years |
| Major NPA/default | 3–5 years of perfect behaviour |
Don’ts: What Hurts Your Credit Repair Efforts
- Settling loans for less (shows as “settled”, not “closed”, and hurts future scores)
- Paying only minimum amount on credit cards
- Losing patience – credit repair is a marathon, not a sprint
- Ignoring your report for months (missed errors pile up)
Conclusion: Credit Repair in India is Possible
- Get your reports from all bureaus
- Fix errors with disputes and provide evidence
- Pay all dues on time for at least 6-12 months
- Keep card usage below 30% and don’t take unnecessary new loans
- Monitor your improvement each quarter
Bottom Line: Anyone can repair their credit in India—no consultant needed. Stay disciplined, be patient, and in less than a year you’ll see a score boost!