How to Increase CIBIL Score from 650 to 750 (Step-by-Step)
What is a CIBIL Score?
A CIBIL score is a 3-digit number (300-900) summarizing your credit history. A score of 750+ is considered excellent and unlocks lower interest rates on loans.
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| Score Range | Status | Impact |
|---|---|---|
| 750 - 900 | Excellent | Lowest Rates, Instant Approval |
| 700 - 749 | Good | Strong Approval Chances |
| 650 - 699 | Fair | Higher Rates, Stricter Terms |
| Below 650 | Poor | High Rejection Risk |
The "Settled" vs "Closed" Status Trap
One of the most damaging mistakes is accepting a "One-Time Settlement" (OTS) from a bank. It might save you money now, but it costs you your credit reputation for years.
Situation: You owe ₹2 Lakhs but can't pay. Bank offers to close loan for ₹1.5 Lakhs.
- Bank Marks: "Settled"
- Impact: Score drops by 75-100 points.
- Duration: Stays on report for 7 years.
Action: Contact the bank, pay the remaining difference (e.g., ₹50,000).
- Request: Ask for a "No Objection Certificate" (NOC).
- Update: Ensure they change status to "Closed".
- Result: Score bounces back within 30-45 days.
Raising a CIBIL Dispute: Step-by-Step
If you find errors (wrong name, closed loan showing active, identity theft), you must dispute it immediately directly on the CIBIL website.
- Login: Go to cibil.com and access your free credit report.
- Identify: Locate the specific account or personal detail that is incorrect.
- Dispute: Click on the "Raise a Dispute" button in the Dispute Center section.
- Evidence: Upload supporting proofs like NOC, payment receipts, or closure letters.
- Resolution: CIBIL contacts the lender for verification. Correction typically takes up to 30 days.
Credit Utilization Hack: The "30% Rule"
The Secret Hack: Pay BEFORE Statement Date
Banks report your balance to CIBIL on the Statement Generation Date, not the Payment Due Date.
You spend ₹90k (Limit ₹1L). Statement generates showing ₹90k due. CIBIL sees 90% utilization (Bad).
Pay ₹85k 2 days *before* statement date. Statement generates showing ₹5k due. CIBIL sees 5% utilization (Excellent).
Secured Credit Cards: Rebuilding from Scratch
If your score is too low (<650), no bank will give you a regular loan. The solution is a Secured Credit Card backed by a Fixed Deposit (FD).
| Bank / Card | Min FD Amount | Features |
|---|---|---|
| IDFC WOW | ₹2,000 | No Income Proof, Lifetime Free |
| OneCard (Metal) | ₹5,000 | Mobile-first app, Metal Card |
| Kotak 811 | ₹10,000 | Low Barrier Entry for existing customers |
12-Month Step-by-Step Action Plan
Financial Impact: Why 750+ Matters
Why bother repairing your score? Because a good score saves you lakhs on big loans.
| CIBIL Score | Interest Rate | Total Interest Paid |
|---|---|---|
| 650 (Fair) | 10.0% | ₹65.8 Lakhs |
| 750 (Excellent) | 8.5% | ₹54.1 Lakhs |
| Savings | - | ₹11.7 Lakhs Saved! |
Frequently Asked Questions (FAQs)
Final Verdict
Improving your CIBIL score is a journey of discipline, not a quick fix. Be wary of agencies promising overnight miracles.
Fincado Research Team
Fact CheckedOur analysis is built on deep-dive research into RBI Benchmarks and lender-specific disclosures. We verify every interest rate and fee structure against real-world borrower approvals to ensure the highest level of accuracy for Indian home buyers.
Disclaimer: This guide is for educational purposes. We do not provide credit repair services. Always deal directly with CIBIL or your lender for disputes. Beware of agencies promising instant score hikes.
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