Common Reasons for Low CRIF Credit Scores and How to Fix Them

Your CRIF credit score is more than just a number—it’s a measure of your financial trustworthiness. Whether you’re applying for a loan, a credit card, or even trying to rent a home, your score can significantly influence the outcome. But many people discover too late that their score is lower than expected, and worse, they don’t know why.

If your CRIF score is below 700, it’s important to understand the causes behind it and what you can do to fix them.

In this blog, we’ll look at the most common reasons for a low CRIF credit score and give you step-by-step solutions to improve it. Whether you’re rebuilding after missed EMIs or just starting your credit journey, these insights will help you regain control.

What is Considered a Low CRIF Credit Score?

CRIF credit scores generally range from 300 to 900.

If your score is below 700, especially under 650, most lenders will either reject your loan application or offer very high interest rates.

RupeeQ Tip: Check your CRIF score for free using RupeeQ ACE. It not only shows your score but also gives personalized insights into what’s pulling it down and how to improve.

Common Reasons for Low CRIF Credit Scores

1. Missed or Late EMI and Credit Card Payments

Impact:
Your payment history makes up a significant portion of your score. Even one missed payment can lower your CRIF score by 50–100 points.

Fix:

• Pay outstanding dues immediately.
• Set reminders or auto-debit for future EMIs.
• Maintain a consistent payment record for the next 6–12 months to gradually rebuild.

Example:
Ankit forgot to pay his credit card bill in February. When he checked his CRIF score in April, it had dropped from 740 to 685. He resumed on-time payments, and within six months, the score was back above 720.

2. High Credit Card Utilization

Impact:
Using over 30–40% of your credit limit regularly signals financial stress, which lowers your score.

Fix:

• Keep utilization under 30% of the credit limit.
• Request a credit limit increase if needed (but don’t increase spending).
• Pay credit card balances multiple times a month.

Example:
Rita has a credit card with a ₹1,00,000 limit. She often uses ₹80,000 and pays it back by the due date. Still, her CRIF score was only 695. After reducing usage to ₹25,000 per cycle, her score improved to 740.

3. Too Many Loan or Credit Card Applications

Impact:
Every application triggers a “hard inquiry.” Too many hard inquiries in a short time suggest desperation for credit, lowering your score.

Fix:

• Limit new applications to one every 6 months.
• Use pre-approved offers or platforms like RupeeQ to check eligibility without impacting your score.

RupeeQ Tip: Apply through RupeeQ to view offers based on your actual credit score without triggering hard inquiries.

4. Lack of Credit History (New to Credit)

Impact:
If you’ve never taken a loan or used a credit card, CRIF may not have enough data to assign a good score.

Fix:

• Start with a secured credit card (against FD).
• Take a small personal loan or credit-builder product.
• Use the credit responsibly for at least 6 months.

5. Multiple Unsecured Loans or Active Defaults

Impact:
A credit profile with several active unsecured loans (personal loans, credit cards) or accounts in default reduces lender trust.

Fix:

• Clear smaller outstanding loans first.
• Avoid taking new unsecured credit until score improves.
• Convert overdue accounts to structured repayment plans.

6. Errors in Credit Report

Impact:
Sometimes your credit report may show inaccurate data, like:

• A loan that’s already closed
• A payment marked late by mistake
• Incorrect personal details

These errors can significantly lower your CRIF score.

Fix:

• Review your CRIF report every 3–6 months.
• Raise a dispute with CRIF or via RupeeQ if you find any issue.
• Submit supporting documents (payment receipt, NOC).

RupeeQ Tip: Use the Raise a Query feature on RupeeQ’s My Report section to dispute any inaccuracies quickly.

7. Loan Settlements or Write-offs

Impact:
If you’ve settled a loan by paying less than what was due, it stays on your report as a negative mark for up to 7 years.

Fix:

• Try to pay the remaining amount to get a “closed” status.
• If not possible, avoid repeating the behavior and maintain on-time payments going forward.
• Use a credit-building product to offset the negative entry.

How to Fix a Low CRIF Credit Score – Summary Table

How Long Does It Take to Improve?

Improvement depends on the issue and your repayment discipline:

• 1–3 months for minor issues like high utilization
• 3–6 months for a few late payments
• 6–12+ months for serious defaults or settlements

Consistency is key.

Example:
Mohit had a score of 620 due to missed EMIs in 2022. By paying all dues and using less than 20% of his credit card limit, his score climbed to 725 in 10 months.

Conclusion

A low CRIF credit score doesn’t mean you’re stuck forever. The first step is to understand what’s bringing it down—whether it’s missed payments, overused credit cards, or report errors. Once identified, you can take targeted actions to repair and rebuild your score.

With tools like RupeeQ ACE, you don’t have to guess. You get personalized analysis, free CRIF score checks, and actionable tips to fast-track your improvement journey.

Good credit isn’t built overnight—but with consistent habits, smart monitoring, and timely fixes, your CRIF score can go from poor to excellent.

Frequently Asked Questions

What is the fastest way to improve my CRIF score?
Pay all overdue EMIs, lower credit card usage, and avoid applying for new loans for a few months.

Will a single late payment affect my score?
Yes, especially if your score is borderline. A one-time miss can drop it by 50–100 points.

How do I know what’s hurting my score?
Check your detailed CRIF credit report through RupeeQ ACE to identify specific problem areas.

Can I still get a loan with a low CRIF score?
You may qualify for smaller or high-interest loans. Try secured loans or microloans to rebuild first.

Is it possible to go from 600 to 750 in a year?
Yes, if you fix the underlying issues and maintain on-time payments consistently.