Why Increase CIBIL Score?

  • Higher scores (750+) lead to better loan terms, lower interest rates, and faster approvals.

How To Increase CIBIL Score 

  1. Repay on Time: Pay full dues; avoid minimum payments.
    • App: Cred, Paytm.
  2. Keep Low Credit Utilization: Use less than 30% of your credit limit.
    • App: BankBazaar, MoneyView.
  3. Avoid Multiple Loans: Limit new credit inquiries.
    • App: Experian, TransUnion.
  4. Balance Secured & Unsecured Loans: Maintain a mix of loan types.
    • App: InstaMoney.
  5. Keep Old Credit Open: Don’t close old credit accounts.
    • App: CreditMantri.
  6. Maintain Good Credit History: Build and keep positive credit habits.
    • App: Credit Karma, WalletHub.
  7. Check Credit Report Regularly: Spot and correct errors quickly.
    • App: CIBIL Score, ClearScore.

Benefits of a 750+ Score:

  • Faster loan approval, better terms, more lender options, and special offers.

If your CIBIL score is around 600, you might consider improving it to 750 or above. You might be aware that a higher CIBIL score can open doors to better loan terms, lower interest rates, and faster approvals. 

Whether you’re looking to get a personal loan, credit card, or even a mortgage, knowing how to increase your CIBIL score is important. In this guide, we’ll walk you through practical steps on how to improve your CIBIL score and boost it quickly.

Ways to Increase CIBIL Score 

  1. When You Repay on Time

Timely repayment is one of the most critical factors in improving your CIBIL score. Make it a priority to pay off your entire outstanding amount at the end of each billing cycle. Avoid paying only the minimum balance due or part of your EMI, as this can negatively impact your score. Consistent, on-time payments will gradually push your score towards 750.

You can use apps to set reminders and automate payments, ensuring timely repayment of dues.

  1. When You Keep a Low Credit Utilization Ratio

Your credit utilization ratio is the percentage of your credit limit that you use. It’s advisable to keep this ratio below 30% of your total credit limit. For example, if your credit limit is ₹1,00,000, try not to use more than ₹30,000. A lower credit utilization ratio indicates responsible credit behavior and can significantly boost your CIBIL score.

These apps can help you monitor your credit utilization and give insights to keep it in check.

  • BankBazaar 
  •  MoneyView: Money Manager  
  1. Avoid Multiple Loans

Taking out multiple loans or making several credit inquiries in a short period can lower your CIBIL score. Each time you apply for credit, lenders perform a hard inquiry on your credit report, which can reduce your score by a few points. It’s best to avoid taking on too many loans at once and to be selective about applying for new credit.

App: Use the below apps can track your credit inquiries and offer recommendations to avoid excessive borrowing.

  • Experian 
  • TransUnion
  1. Balance of Secured & Unsecured Loans

A balanced mix of secured loans (like home or car loans) and unsecured loans (like personal loans or credit cards) reflects positively on your credit profile. Having a variety of credit types shows lenders that you can manage different forms of debt responsibly, which can help improve your score.

InstaMoney can offer you loans, allowing you to manage your credit mix effectively.

  1. Holding Old Credit Open

Your credit history length is an important factor in determining your CIBIL score. If you have old credit cards that you don’t use, keep them open rather than closing them. Closing old credit accounts can reduce the length of your credit history and increase your credit utilization ratio, both of which can lower your score.

App: Use CreditMantri to get personalized advice on managing old credit accounts and improving your credit history.

  1. When You Have a Good Credit History

Building and maintaining a good credit history is key to achieving a high CIBIL score. If you’ve had issues in the past, work on building positive credit habits to push negative remarks out of your report over time. It takes discipline and patience, but maintaining a good credit history will eventually lead to a higher score and better loan terms.

These apps can help you monitor and improve your credit history by providing regular updates and tips.

  • Credit Karma 
  • WalletHub
  1. Checking Your Credit Report Many Times

Regularly checking your credit report can help you spot errors or discrepancies that may be dragging down your score. If you find any inaccuracies, you can raise a CIBIL dispute to correct them. Correcting these errors can result in an immediate improvement in your CIBIL score.

They allow you to check your credit report for free and offers tools to dispute inaccuracies.

  • CIBIL Score app 
  •  ClearScore

Benefits of Improving Your Score to 750

Achieving a CIBIL score of 750 and above comes with several benefits:

  • Faster Loan Approval: Lenders are more likely to approve your loan applications very fast.
  • Better Loan Terms: You can negotiate for lower interest rates and longer loan tenures.
  • Multiple Lender Options: A high score gives you the freedom to choose from many lenders.
  • Special Offers: You might qualify for discounts or reduced processing fees.

Conclusion

Increasing your CIBIL score from 600 to 750 is achievable with the right strategies and consistent effort. By following these steps—like repaying on time, maintaining a low credit utilization ratio, and regularly checking your credit report—you can steadily improve your score and enjoy the benefits of a higher CIBIL score.