Your CIBIL score plays a crucial role in determining your loan eligibility. Whether you are applying for a home loan, personal loan, or credit card, banks and financial institutions check your CIBIL score before approving your application. A higher score increases your chances of getting loans at lower interest rates, while a low score may lead to rejection or high-interest rates. Here we have discussed topic about increase Cibil score quickly.
If your CIBIL score is below 750, don’t worry! There are quick and effective ways to improve your credit score and secure better financial opportunities. In this guide, we will walk you through step-by-step methods to increase your CIBIL score quickly so that you can get approved for loans without any hassle.
Let’s dive in!
How to Increase Your CIBIL Score Quickly
1. Pay Your Bills on Time
Your payment history contributes to 35% of your CIBIL score, making it the most crucial factor. Missing EMIs, credit card dues, or utility bills negatively affects your score.
✔ Set auto-debit for EMI payments.
✔ Pay at least the minimum amount due on credit cards before the due date.
✔ Avoid bouncing cheques or delays in bill payments.
2. Maintain a Low Credit Utilization Ratio
Credit utilization refers to the percentage of your credit limit that you use. A high utilization ratio signals financial stress to lenders and reduces your score.
✔ Keep your credit utilization below 30% of your total limit.
✔ If your credit card limit is ₹1,00,000, try not to spend more than ₹30,000.
✔ Request a credit limit increase to lower your utilization ratio.
3. Diversify Your Credit Mix
A healthy credit mix of secured (home, car loans) and unsecured credit (personal loans, credit cards) positively impacts your score.
✔ Avoid relying too much on one type of credit.
✔ If you have only credit cards, consider adding a small personal loan.
✔ If you lack a credit history, start with a credit card backed by a fixed deposit.
4. Avoid Multiple Loan Applications at Once
Every time you apply for a loan or credit card, lenders check your CIBIL report, which is called a hard inquiry. Too many inquiries in a short period can reduce your score.
✔ Compare loan offers online before applying to avoid multiple inquiries.
✔ Space out your loan applications by at least six months.
✔ Opt for a pre-approved loan offer to minimize hard inquiries.
5. Regularly Check Your CIBIL Report for Errors
Errors in your CIBIL report can lower your score. Incorrect loan details, duplicate accounts, or fraudulent activities can impact your creditworthiness.
✔ Check your CIBIL score and report every 3-6 months.
✔ Dispute any errors with CIBIL’s grievance redressal system.
✔ Ensure all closed loans and credit accounts are correctly marked.
Check your CIBIL score for free on the official CIBIL website
6. Clear Outstanding Dues & Negotiate Settlements
Old unpaid dues can negatively impact your score. Even a settled status (partial payment) instead of closed can reduce your credibility.
✔ Pay off old debts or negotiate a one-time settlement with lenders.
✔ Request lenders to update your CIBIL report to ‘Closed’ after payment.
✔ Avoid keeping credit cards inactive for long periods.
7. Build a Long Credit History
The longer your credit history, the better your CIBIL score.
✔ Keep your oldest credit card active even if you don’t use it often.
✔ Avoid frequently closing old credit accounts.
✔ Use your credit card for small purchases to maintain activity.
Common Myths About CIBIL Score
❌ Checking Your CIBIL Score Lowers It
✅ Fact: Checking your score yourself is a soft inquiry and does NOT affect your credit score. However, banks conducting checks (hard inquiries) can lower it.
❌ Closing a Credit Card Improves Your Score
✅ Fact: Closing a credit card reduces your total credit limit, which increases your credit utilization ratio, lowering your score.
❌ Higher Income Means a Higher CIBIL Score
✅ Fact: Your CIBIL score is not based on income but on your repayment history and credit behavior. Even a high-income individual with poor repayment history can have a low score.
How Long Does It Take to Improve Your CIBIL Score?
Improving your CIBIL score is a gradual process. Here’s an estimated timeline:
📅 30-60 days: If errors in your report are fixed.
📅 3-6 months: With timely EMI payments and reduced credit utilization.
📅 6-12 months: With a well-maintained credit mix and long-term responsible behavior.
A high CIBIL score is essential for securing better loans with lower interest rates and higher approval chances. By following the steps mentioned above, you can quickly increase your CIBIL score and build a strong financial profile.
Take Action Now!
✔ Pay your bills on time.
✔ Keep your credit utilization below 30%.
✔ Check your CIBIL report regularly for errors.
👉 Check your CIBIL score today and start improving it!