Role of a Financial Advisor in Improving the Cibil Score

Role of a Financial Advisor in Improving the Cibil Score

CIBIL score is the numerical expression or a three-digit number which lies between 300-900. It evaluates the creditworthiness of an individual and measures his ability to pay back the loans. It becomes critical because it helps one in getting loans, negotiating the rate of interest and amount, helps one in availing the higher credit card limits. It tracks the number of accounts, debts taken and repayment made. It then provides a score which helps in determining whether the user will be able to fulfil his existing and new credit obligations.

Sometimes individuals can quickly improve the CIBIL score by following a few simple steps while other times it becomes a tad difficult for an individual to improve the CIBIL score, here comes the role of a financial advisor. Financial advisors are the experts in the field of finance, and they are well versed with every investment and debt instrument. They provide their valuable advice and shape the future of the clients. A financial advisor helps in navigating the road full of obstacles and make the daunting task of improving CIBIL score a cakewalk.

Role of the financial advisor in improving the CIBIL Score

  1. Educate one on ways to improve your financial situation

Financial advisors are the veteran of finance; they know how to sail through the tough water of finance. They advise an individual about what instrument might suit him and also inform him about the prevailing economic conditions which have a bearing on the investments. Their advice goes a long way in helping the individual. They also assist in improving the CIBIL score.

  1. Helps on in investing in a diversified debt instrument

It is an adage to not to keep all your eggs in one basket, this pithy still has its importance, especially in the field of finance. Individuals are always advised to diversify the debts instruments, which means maintaining the right mix of secured and unsecured loans; it also means there should be a suitable combination of long and short term loans. As most of the time individuals are not well versed with all the investment vehicles and debts instruments, the financial advisor provides tailor-made advice according to the needs of the client. The diversified debt instruments help in creating a better credit score and further helps in qualifying for low interest and high amount of loans.

  1. Review your CIBIL score

SWOT analysis is imperative to improve the CIBIL score, analysis of one’s weak and strong areas helps one to decipher the areas one needs to put efforts to make things better and the areas where one needs to consolidate further or maintain the position. However, the analysis of CIBIL score is not a mean feat and more often than not individuals summon the financial advisor to help them.

  1. Miscellaneous cases

Some financial advisors help individuals in making the timely payment, rectifying the wrong credit history. Further, they also help one to avoid taking too much credit at one time and keeping the credit utilization ratio low. 

Consulting or taking help from a financial adviser could give an individual the guidance one needs to help him achieve the desired CIBIL score and may strengthen his overall financial well-being.

However, not all professionals are the same. One needs to do the required homework before deciding on which professional to work with. It’s critical to compare the options to find the right financial adviser for your needs.

CIBIL score is of the utmost importance as it helps individuals to secure loans at lower interest rates and helps in availing other benefits. However, it is not an easy peasy task to improve a CIBIL score. A financial advisor helps one in improving the CIBIL score.  

A financial advisor is a person who is well versed with the nitty-gritty of finance and is aware of how finance can be used for an individual’s advantage. They help in improving the credit score by educating one on ways to improve his financial situation, helping in investing in a diversified debt instrument, and reviewing the CIBIL score. Further, they also assist in making timely payment, rectifying the wrong credit history, helping one to avoid taking too much credit at one time, and keeping the credit utilization ratio low.


Individuals must make sure that the selection of a financial advisor must be taken based on thorough research as a person with less knowledge may not be useful in improving the CIBIL score and may also deter the chances of CIBIL score improvement.