Your CIBIL Score is an important factor when it comes to a lender approving or rejecting your application for a loan. While you can get approval on loans such as a personal loan with a low CIBIL Score, it is in your best interest to apply once you improve it. A good score will help you get an instant personal loan at lower interest rates. So, here are 5 ways to give your CIBIL Score a boost.
5 steps to improve your credit score
- Clear all your existing debt
- Pay your EMIs on time
- Limit your credit utilisation
- Report discrepancies in your credit report, if any
- Borrow a mix of credit
Clear all your existing debt
Having outstanding debt is noted on your CIBIL report, and until you repay it, will negatively impact your CIBIL credit score too. So, it is essential that you clear outstanding debts to boost your score. To do this, repay your debt within your chosen timeline or make prepayments to foreclose your loan. Using credit responsibly will improve your score.
Additional Read: Personal loan for lowCIBIL score
Pay your EMIs on time
Making EMI payments isn’t enough. If you don’t make payments on time, it will pull down your CIBIL credit score. Delayed EMI payments are noted in your CIBIL report and include details of the number of days of delay. Here, the best thing to do is to set up an automatic transfer from your bank account to facilitate timely payment. Then, be sure that your account has enough funds to allow the transfer. This will ensure that you don’t incur a bounce charge and will improve your CIBIL Score too.
Limit your credit utilisation
Utilising too much credit shows lenders that you are unable to live in line with your income. So, while utilising credit, it is crucial to stay below the limit. It is also important that you use only as much credit as you can repay. In order to do this, make sure your credit usage doesn’t exceed half your income amount. You can also take measures such as paying your credit card balance in full and not using your credit card up to the full limit consistently.
Additional Read: CIBIL score calculation
Report discrepancies in your credit report, if any
Occasionally, there may be discrepancies in your credit report. For example, your CIBIL credit score may be low as your home loan lender hasn’t informed CIBIL of the latest payment details. So, a good practice is to check your credit score regularly and have any possible discrepancies corrected at the earliest. Bajaj Finserv, one of India’s leading NBFCs, also allows you to perform a free CIBIL check. Simply visit the Bajaj Finserv website and enter your basic details to check your credit score for free.
Borrow a mix of credit
If you do not borrow credit, you will not have a credit score. Also, if you borrow only one type of credit, it will not increase yourCIBIL Score. Thus, to improve your CIBIL Score, borrow a mix of credit. This involves taking secured and unsecured credit and repaying it diligently. Establishing credit experience will surely benefit your score.
In general, refrain from making ad-hoc financial decisions. Always try to take and use credit responsibly to maintain a good CIBIL credit score.Also, remember that once you implement these measures, it may take around 6 months to a year for your score to show improvement.
FAQs
Pay your EMIs on time
If you don't make payments on time, it will pull down your CIBIL credit score. Delayed EMI payments are noted in your CIBIL report and include details of the number of days of delay. Here, the best thing to do is to set up an automatic transfer from your bank account to facilitate timely payment.
How can I get 900 CIBIL score? ›
A CIBIL score of 900 is the highest possible score and indicates that you are a very good borrower. To get a 900 CIBIL score, you need to have a long history of timely repayment of debt, a low debt-to-income ratio, and no negative information on your credit report.
How to increase CIBIL score from 700 to 750? ›
How To Increase CIBIL Score From 600 To 750?
- Repaying on time.
- Maintaining a good credit history.
- Keeping a low credit utilization ratio.
- Avoiding multiple loans/inquiries.
- Balancing secured & unsecured loans.
- Holding old credit open.
- Checking your credit report often.
It is measured on a scale between 300 and 900, with 900 indicating maximum creditworthiness. The minimum CIBIL Score required for Bajaj Finserv Insta EMI Card is 720 or above. A score of 750 or above is considered excellent and can fetch favourable terms while availing of the Bajaj Finserv Insta EMI Card.
How to get 900 credit score? ›
One of the most impactful ways to improve your CIBIL score and achieve a score as near as a credit score of 900 is by consistently paying your credit card bills on time. Late payments can have a negative impact, so setting up reminders or automatic payments can help ensure you never miss a due date.
How to boost credit score overnight? ›
How to Raise Your Credit Score 100 Points Overnight
- Become an Authorized User. This strategy can be especially effective if that individual has a credit account in good standing. ...
- Request Your Free Annual Credit Report and Dispute Errors. ...
- Pay All Bills on Time. ...
- Lower Your Credit Utilization Ratio.
If you have a credit score of 800, it probably means you have a long credit history, have been making payments on time and keep a low credit utilization ratio. All this information shows lenders that you're likely to make good on your loan.
How rare is an 800 credit score? ›
How rare is an 800 credit score? An 800 credit score is not as rare as most people think, considering that roughly 23% of adults have a credit score in the 800-850 range, according to data from FICO. A score in this range allows consumers to access the best credit card offers and loans with the most favorable terms.
How to increase CIBIL score immediately? ›
So if you are looking to improve CIBIL score pay your dues on time and rack up a good score. Use service that let you automate bill payment so that you don't have to worry about missing deadlines. Too much is, well, too much: Use credit prudently. Avoid taking on too much debt at one time.
Can I buy CIBIL score? ›
Buy your CIBIL Score and Credit report. This will cost you only Rs. 550/- and you can have access to the credit report within 3 business days. Follow the below step by step process to understand your report and identify areas to improve on.
A score of 850 can only be achieved with 10+ years of credit, excellent on-time payment history, low credit utilization, and no recent hard inquiries, which is a tall ask.
How to generate CIBIL score first time? ›
If you are just starting out, consider applying for a credit builder loan or a secured credit card. You can also look into becoming an authorised user on someone else's credit card. Regular payments: Paying your bills on time is one of the most crucial factors in determining your credit score.
How much does the CIBIL score increase per month? ›
Additional Reading: How long does it take to improve a CIBIL™ score? To improve credit score within a month by at least 100 points, all of the above tips must be practised. It is important to maintain consistently good credit behavior to improve credit history and therefore, credit score.
What is Bajaj Finserv limit? ›
₹3 Lakhs. Max Pre-approved Loan.
Is Bajaj Finserv EMI card good? ›
Absolutely. Opting for the Bajaj Finserv Insta EMI Card is a prudent decision. Its swift approval process, widespread acceptance, and No Cost EMI option ensure a seamless and cost-effective shopping experience.
How many days will it take to increase CIBIL score? ›
CIBIL score cannot be increased in one day. It needs at least four to 12 months to see visible difference in your credit score. TransUnion CIBIL is one of the leading credit information companies in India. The company maintains one of the largest collections of consumer credit information in the world.
How can I increase my credit limit in CIBIL? ›
Responsible usage: It is vital to make timely payments, and keep balances low relative to your credit limits, and avoid maxing out your cards. Using credit card responsibly can show to the issuer that you are a low-risk customer, making them more likely to approve a credit limit increase.
How to improve credit score in 30 days? ›
Improving your credit score in 30 days can be achieved through timely payments, acquiring a credit card, maintaining a low credit utilization ratio, requesting a higher credit limit, and opting for a cash-backed credit card.
