How to Increase Cibil Score from 500 to 750

How to Increase CIBIL Score from 500 to 750

Improving your CIBIL score requires time and consistent effort, but with the proper habits, you can transition from a low score to a healthier range and enhance your financial profile.

• Keep your credit utilisation ratio below 30% to improve your score. High usage above 40% can reduce stability in your credit profile and lower the chances of loan approval.
• Use your loans or credit cards responsibly. Overusing credit makes you look credit-hungry, while not using it at all gives minimal insight into your repayment behaviour.
• Don’t close old cards with zero balances. They increase your total credit limit and positively impact your three-digit number.
• Pay EMIs and bills on time to show financial discipline. Late payments or defaults make it difficult to obtain better financial opportunities.
• Enable auto-pay or reminders for at least 12 months of on-time payments to reflect long-term stability.
• Regularly check your CIBIL report for errors. Wrong details or hard inquiries can harm your score despite your best efforts.
• Diversify your credit portfolio with both secured and unsecured options. A balanced mix of credit works like an asset for a stronger credit history.

Benefits of Good CIBIL Score

Now that you know how to improve your CIBIL score from 500 to 750, you must be wondering what benefits you will get with so much effort. Let’s talk about the most important ones below:

Quick loan Approval

Are you considering Personal Loan online? Your approval will largely depend on your CIBIL score. When you apply for a loan, the lending institution will determine your creditworthiness by looking at your credit history. That is why they expect a CIBIL score of 750 or above to approve loan applications quickly.

Low-interest Credit

By achieving a CIBIL score of 750, you can increase your negotiating power to get a lower interest credit. Lenders perceive you as low-risk borrowers and try to attract you by offering you a lower interest rate. You get the funding you need at lower rates, and the lender receives a higher repayment assurance. So it's a win-win situation for both.

Less credit Risk

Improving the credit score displays responsible credit behaviour, making you a low-risk borrower for credit providers. Since they see less credit risk in lending to you, they provide you with better offers and lower rates on credit products.

Credit card Benefits

Maintaining a high credit score by paying your bills on time makes you eligible for various credit card benefits, like lower interest rates, discounted shopping, cashback, free gifts, higher credit limit, etc.

Conclusion

If you want to know how to increase CIBIL score from 500 to 750, get ready for some consistent effort and strategic approach. Follow the smart tips discussed here to boost your credit score and build a healthy profile gradually. Patience and persistence will help build a strong credit history, improving your eligibility for a Personal Loan at better rates and terms.

Frequently Asked Questions

1. How to Increase CIBIL Score from 500 to 750 Without a Credit Card?

Paying current loan EMIs on time, diversifying the credit portfolio, rectifying errors in the credit report, and consolidating debt with a Personal Loan are the best ways to increase your CIBIL score from 500 to 750 without a credit card.

2. Can You Recover from a 500 Credit Score?

Yes, you can recover from a 500 credit score with consistent effort and responsible credit behaviour. Pay your due amounts on time, reduce your DTI ratio and CUR, and diversify your credit portfolio to increase your credit score fast.