Your CIBIL score is an important factor to determine your creditworthiness. A good CIBIL score streamline the process of applying for a loan. And, if you are securing a 600 score, you should make it to the ideal score of 750.
And, if you are worried about how to increase the CIBIL score from 600 to 750, this blog is for you. You can easily improve your CIBIL score as we will discuss the effective ways of helping you to increase your score from 600 to 750.
How To Increase CIBIL Score From 600 to 750?
Here are the 10 most important ways to help improve your CIBIL score:
1. Ensure Regular Checking of Your Credit Report
You can incredibly improve your CIBIL score by checking your credit report on a regular basis. It helps you identify errors and make appropriate decisions immediately. The incorrect and untrue information may badly impact your credit score. If you detect any false data, you should dispute them with the credit bureau.
2. Make Timely Payments
It is crucial to pay your bills and loans timely to avoid delays. It is the most efficient way to boost your CIBIL score, as late payments can leave a bad impact on your credit score. Use technology like reminders and setting up automated bill payments to avoid missing due dates.
3. Decrease the Usage of Your Credit Card
Minimize the usage of your credit card to avoid any harm to your CIBIL score. If possible, do not cross your credit card limit and pay off the entire amount of your credit card bills in one go every month.
4. Clear Pending Loans
If you have active loans, try to pay them off even before the timeline. Ensure you clear the high-interest loans first and improve your credit score over time.
5. Avoid repeatedly applying for credit.
The lenders ensure in-depth inquiry each time you apply for a credit card or loan. It can significantly lower your score and harm your creditworthiness. You should avoid applying for loans at multiple lenders to streamline when you are in urgent need of credit.
6. Maintain a Healthy Credit Mix
Try to mix your secured and unsecured loans to positively impact your CIBIL score. It reflects how responsibly you are handling the various types of loans.
7. Enhance your credit limit.
If you have a high credit utilization ratio, simply make a request to your bank to increase your credit limit. Once done, avoid spending much and maintain the ratio perfectly to improve your CIBIL score.
8. Get Any Authorized User
If you have a low score and are not able to open a credit card account, consider any trusted person having good credit to add you as an authorized user on their account. Now, their payment history also benefits you and improves your credit score.
9. Resolve outstanding disputes
Avoid having disputes with lenders or any financial institutions, as it can affect your credit score. If you already have any, resolve it immediately to remove negative remarks from your report and boost your CIBIL score.
10. Get a Secured Loan
Applying for a secured loan, for instance, a car loan, etc., and making timely payments can enhance your CIBIL score. Lenders often consider such loans safe, and your responsible behavior towards repayment shows your ability to manage further credit.
Importance of Improving Your Score from 600 to 750
Improving your score from 600 to 750, which is utmost important. Let’s know below:
- It increases your chances of having seamless loan approval processes.
- A higher credit score can get you better interest rates.
- It shows your considerable creditworthiness.
- A good CIBIL score can enable emergency loan approvals.
- You get financial flexibility.
Tips to Maintain a High CIBIL Score
When you are done with improving your CIBIL score from 600 to 700, it is high time to know how to maintain it. Let’s go through the simple steps:
- Ensure timely payments for credit card bills, EMIs, utility payments, etc.
- Do not cross your credit card limits and maintain a healthy credit score.
- Avoid applying for loans at multiple lenders.
- Do not close your old accounts.
- Keep checking your credit regularly.
Conclusion
You can easily increase your CIBIL score from 600 to 750 with the above guide. These tips can significantly help you in practicing good credit habits to make informed financial decisions. A good credit score can help you secure your loans when it is required. The discussed tips can show you big improvements in your score and ease the process of securing loans at favorable terms.
