How To Increase CIBIL Score: Smart Tips to Improve Your Creditworthiness!

When applying for a loan or credit, it is essential that you have a good CIBIL score. This is because a good CIBIL score is not just a three-digit number; it is an indication of good financial health and creditworthiness. However, improving your credit score and then maintaining it seems challenging, especially if you have had a financial setback recently. Don’t worry! In this article, we will discuss ways to improve your CIBIL score. We will also have a look at the CIBIL score ranges and the importance of maintaining an impressive score.

So, keep reading to explore the most trustworthy ways to boost your CIBIL score!

Credit Score Range: What Category Does Your CIBIL Score Fall Into?

Check the table below to discover where your score falls within the CIBIL score range and what score you should aim for: 

If your score is in the bad, poor, or average category, it is time for you to start exploring how to increase CIBIL score from 600 to 750.. But first, let’s understand the benefits associated with maintaining a high credit score. 

Exploring the Noteworthy Benefits of Having an Excellent CIBIL Score 

When you maintain your credit score above 750, you can reap the following benefits:

• A good CIBIL score is an indication of your creditworthiness, which means a lender will see you as a responsible borrower. This improves your chances of getting a loan or credit card approval.
• You can also get loans at lower interest rates if you have a good credit score.
• Many companies will be eager to give you a pre-approved loan offer.
• You will also be able to access premium facilities.
• Oftentimes, a bigger loan amount is approved because of a high CIBIL score.
• Lastly, you get an extended time for paying back the loan. What does this mean? That your EMIs are smaller, which facilitates easier financial management and convenient repayment. 

How To Improve CIBIL Score: The Most Effective Tips

Now that you know that boosting your score is crucial for better financial opportunities, you must be wondering how to increase your CIBIL score quickly. While improvement in your credit score doesn’t happen overnight, consistent efforts will help you increase your score over time. Here are a few ways to improve your credit score:

• Pay EMIs on Time: The most effective way to improve your credit score is to pay all EMIs and credit card bills and loan instalments before the due date. Late payments can harm your credit score and negatively impact your CIBIL credit score. Set reminders or enable auto-debit to avoid delays and maintain a good CIBIL.
• Plan Repayments in Advance: If your repayment schedule is at the end of the month, set aside the required amount as soon as your salary is credited, ideally in a separate account. This habit helps you keep your credit stable and prevents missed payments that may affect your credit score.
• Limit Loan and Credit Card Applications: Too many loan and credit card applications in a short period can lead to a lower score. Each loan application impacts your score. However, checking your own score on the official CIBIL website is only a soft inquiry, which does not impact your CIBIL credit score.
• Maintain a Healthy Credit Mix: One of the best ways to improve your CIBIL is to balance secured loans, unsecured loans, and credit cards. Having cards from different issuers also strengthens your credit profile and may increase your chances of getting a better loan.
• Build a Longer Credit History: A consistent repayment record over time contributes to a higher CIBIL score. A long history of responsible payments shows the Credit Information Bureau that you can manage credit well, which can improve your score and boost your chances of loan approval.
• Keep Credit Usage Low: Use less than 30% of your available credit limit every month. A low CIBIL score often comes from high utilisation. Maintaining a low credit utilisation ratio is one of the simplest ways to increase CIBIL score and improve your score fast.
• Check for Errors: Always check your CIBIL report at least once a year. Errors or anomalies can negatively impact your CIBIL credit and harm your credit score. Visit the official CIBIL website to review and correct them, as fixing these mistakes can lead to quick improvement in your credit profile.
• Handle Financial Strain Carefully: If emergencies prevent timely payments, request a one-time settlement. While this may give temporary relief, repeated settlements can report negatively and impact your CIBIL credit score over time.
• Rebuild with a Secured Credit Card: If you have a credit score below 600 or are looking to rebuild your credit score, place a fixed deposit and get a secured credit card. Use it for small purchases and pay on time. This is one of the best ways to improve your CIBIL and gradually increase your credit score.
• Consider a Starter Loan: For those recovering from a low CIBIL score, taking a small personal loan can help increase your credit. With timely payments, this will boost your score and show financial responsibility, even if the interest rate is slightly higher.
• Plan Your Loans Strategically: Apply for a loan or a credit card only when necessary. Planning repayment schedules in advance prevents financial stress, ensures timely payments, and avoids debts that may harm your credit score.
• Stay Consistent: Improving your CIBIL score isn’t something that happens score overnight. The best long-term strategy is to borrow responsibly, make timely payments and delays consistently, and manage your loan accounts well. Over time, this will help you increase your score, maintain a higher CIBIL score, and improve your score for a better loan offer.

Get the Loan Options for Better Financial Management: Choose Hero Fincorp Today! 

Now that you have learned how to increase CIBIL score, you must be looking for the lender that offers you the safest loan options. Hero Fincorp is one of the most trusted and reputed NBFC brands in India, offering you numerous kinds of loans with minimum documentation hassle. The different loan options offered by Hero Fincorp include: 

• Personal Loans
• Business Loans
• Used Car Loans
• Two-Wheeler Loans
• Electric Two-Wheeler Loans
• Loyalty Loans
• Loan Against Property
• Loan Against Car

In addition, if you have questions related to CIBIL scores or credit reports, you can get in touch with our expert team. We are eager to cater to your financial needs and help you in whichever way possible! 

Conclusion

Maintaining a high CIBIL score shows how responsibly you are managing your finances and whether you are a creditworthy individual or not. For those thinking about how to improve my CIBIL score, the 11 valuable tips discussed here will prove to be extremely beneficial. Once you have an impressive credit score that falls under the “Good” or “Excellent” category, you can apply for loans, negotiate the lowest interest rates, and enjoy better repayment terms as well. 

If you are also looking for the loan lenders across the nation, you must choose Hero Fincorp. We have a comprehensive range of loan options that will suit your requirements. To explore these options, visit the official website now! 

Frequently Asked Questions

1. How can I improve my CIBIL score immediately?

There is no way to improve your CIBIL score overnight, but you can definitely take a few steps to increase it gradually. These include paying off your debts, making EMI and credit card repayments on time, getting any incorrect information on your CIBIL report corrected, maintaining a good credit mix, and keeping your credit utilization ratio below 30%, among many others. 

2. Is it possible to get a CIBIL score of 900?

Getting a perfect CIBIL score of 900 is possible but also very rare. You need exceptional and flawless financial management for the same. However, even if you know how to increase CIBIL score from 600 to 750 and are able to achieve it, you will be able to enjoy the most amazing benefits. 

3. How can I reset my CIBIL score?

You cannot reset your CIBIL score as per regulations. Nonetheless, you can achieve the ideal score by knowing how to increase your CIBIL score and taking the right steps consistently. 

4. Is a 748 credit score sufficient?

748 is considered a “good” credit score. That being said, if you want to avail yourself of the maximum advantages, it is suggested that you achieve an “excellent” CIBIL score, that is, between the range of 750 to 900. 

5. Will my CIBIL score be affected if I am late for repayment by one day?

Usually, your CIBIL score is not impacted negatively if you make the repayment late by one or two days. However, anything beyond that or multiple missed due dates will definitely bring your credit score down. 

6. Can I get a loan of INR 50,000 if I have a CIBIL score of 700?

Yes. If your CIBIL score is 700 or above, you can get a personal loan of INR 50,000 with reasonable interest rates and good repayment terms. However,  if you have a lower score, you should first learn how to increase CIBIL score, achieve it, and then apply for a loan or credit. 

7. How long does the Credit Appraisal process take?

The Credit Appraisal process usually takes a few days to a couple of weeks, depending on the lender, the type of loan, and the completeness of submitted documents.