7 Proven Ways to Increase Your CIBIL Score Above 750
A CIBIL score above 750 is the golden ticket to quick loan approvals and the lowest interest rates. If your score is stuck in the 600s, you might face rejections or be forced to pay 2-3% higher interest.
The good news? Your score is not permanent. With disciplined financial habits, you can repair it.
1. Pay Dues on Time, Every Time
Your payment history accounts for roughly 35% of your CIBIL score. It is the single most important factor.
Action Plan
- • Set up auto-debit for all EMIs and Credit Card bills.
- • Ensure your bank account is funded 2 days before the due date.
- • If you miss a date, pay immediately (within 1-2 days) to avoid reporting.
2. Keep Credit Utilization Low (Under 30%)
Just because you have a credit limit of ₹1 Lakh doesn't mean you should spend it all. High utilization signals "credit hunger".
| Utilization % | Score Impact | Status |
|---|---|---|
| 0-30% | Positive | Excellent |
| 31-50% | Neutral | Acceptable |
| 50%+ | Negative | High Risk |
Pro Tip: If you need to spend more, request your bank to increase your credit limit. This automatically lowers your utilization ratio.
3. Don't Close Old Credit Cards
Closing an old card can hurt your score in two ways:
- Reduces History Length: A longer history (e.g., 5+ years) proves stability. Closing your oldest card shortens your average history.
- Increases Utilization: Closing a card removes its limit from your total pool, instantly spiking your utilization on remaining cards.
4. Diversify Your Credit Mix
Banks love a "balanced" borrower. Ideally, maintain a mix of secured and unsecured loans.
- 1 Secured Loan (Home or Car Loan)
- 1-2 Unsecured Lines (Credit Cards)
5. Check Report for Errors
- Closed loan marked "Active".
- Incorrect personal details merging files.
- Fraudulent loans in your name.
6. Avoid Multiple Applications
Every time you apply for a loan, the lender makes a Hard Inquiry. This shaves off a few points.
Applying for 4-5 cards in a month makes you look "credit hungry" and desperate for cash, scaring off lenders.
7. Be Patient & Consistent
Building credit is a marathon. Here is the realistic timeline:
| Action Taken | Time to Reflect |
|---|---|
| Paying off Credit Card Debt | 30-45 Days |
| Correcting Report Errors | 30-60 Days |
| Building History from Scratch | 6-12 Months |
Frequently Asked Questions (FAQs)
Final Verdict
Improving your CIBIL score is about discipline. A score of 750+ will save you lakhs in interest.
Disclaimer: This content is for educational purposes only and does not constitute financial advice.
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