How to Maintain a High CIBIL Score Above 720

How to Maintain a High CIBIL Score Above 720


A CIBIL score is a vital measure of financial health and a key factor that lenders consider when assessing creditworthiness. Maintaining a high CIBIL score, particularly above 720, enables access to favourable loan terms, competitive interest rates, and quicker approvals.

A strong CIBIL score also reflects responsible financial management and builds credibility with banks and financial institutions. Federal Bank supports borrowers in maintaining excellent credit health through a combination of personalised guidance, reminders, and convenient digital banking services. By following the right practices, a strong credit profile can be maintained, ensuring access to loans, credit cards, and other financial products without unnecessary delays.

This article explores best practices to keep a consistently strong CIBIL score, enabling smooth financial planning and empowering individuals and businesses to meet both short-term and long-term financial goals.

What Is a CIBIL Score?

A CIBIL score is a three-digit number ranging from 300 to 900, assigned by the Credit Information Bureau (India) Limited (CIBIL). It encapsulates credit history and behaviour, reflecting reliability as a borrower. Lenders rely on this score to evaluate credit risk, and higher scores typically lead to faster approvals, better interest rates, and higher loan limits. A score above 720 is generally considered excellent and positions the borrower favourably in the eyes of banks, including Federal Bank. Maintaining such a score signals financial discipline and increases confidence in lending decisions.

Factors Influencing CIBIL Score

Several key factors contribute to the calculation of a CIBIL score:

💡Payment History: Timely repayment of credit card bills and loan EMIs forms the largest component, contributing up to 35% of the score. Delays or defaults can significantly impact the rating.
💡Credit Utilisation: The proportion of available credit that is actually used. Keeping this ratio low, ideally below 30%, shows responsible credit management.
💡Credit Mix: Having a variety of credit types, including secured loans, unsecured loans, and credit cards, demonstrates the ability to manage different credit instruments responsibly.
💡Credit Age: The length of credit history, where older accounts with positive repayment behaviour enhance credibility.
💡New Credit enquiries: Frequent applications for new credit generate hard enquiries, which can temporarily lower the score.

Best Practices to Maintain a High CIBIL Score

  1. Timely Payment of Bills and EMIs
    Consistently paying credit card bills and loan EMIs on time is crucial. Even a single missed payment can significantly affect the score. Automatic payments or reminders help maintain punctuality.
  2. Keep Credit Utilisation Low
    A credit utilisation ratio below 30% is recommended. For example, with a credit card limit of ₹1,00,000, maintaining an outstanding balance below ₹30,000 is ideal. High utilisation can negatively impact the score.
  3. Maintain a Healthy Credit Mix
    A diverse mix of credit types, such as secured loans (home, car), unsecured loans (personal), and credit cards, positively influences the score. It demonstrates responsible credit management, though unnecessary applications should be avoided.
  4. Avoid Frequent Credit Applications
    Each new credit application generates a hard enquiry, temporarily lowering the score. Limiting applications to essential credit needs preserves the CIBIL score.
  5. Monitor the Credit Report Regularly
    Regularly reviewing credit reports helps identify errors or discrepancies that could lower the score. Each individual is entitled to one free report per year from each credit bureau. Any inaccuracies should be disputed promptly.
  6. Maintain a Long Credit History
    The length of credit history impacts the score. Keeping old credit card accounts active, even with minimal usage, helps demonstrate stability over time.

Federal Bank's Commitment to Financial Well-being


Federal Bank understands the importance of a strong CIBIL score in financial planning. As the perfect banking partner, the bank offers a range of products and services designed to support credit health:

  • Timely Credit Card and Loan Repayment Reminders: The bank's online and mobile banking platforms provide convenient bill payment options and timely reminders to ensure dues are met.
  • Responsible Lending Practices: The bank assesses credit profiles holistically, considering factors beyond just CIBIL score, to ensure individuals are offered credit products that align with their financial capacity and goals.
  • Financial Guidance: Federal Bank provides tips, resources, and personalised banking solutions to strengthen credit profiles and facilitate responsible borrowing.
  • Accessible Customer Support: Dedicated banking assistance ensures queries related to credit health are resolved promptly, helping borrowers maintain an optimal CIBIL score.

Key Takeaways for Strong Credit Health


Maintaining a high CIBIL score above 720 requires continuous financial discipline, responsible credit management, and regular monitoring. Following these best practices builds and sustains a strong credit profile, unlocking favourable borrowing opportunities when needed. A healthy CIBIL score reflects financial stability, improves credibility with lenders, and strengthens long-term financial planning. Federal Bank’s comprehensive support and services further empower borrowers to manage credit effectively, ensuring smooth access to loans, credit cards, and other financial products.