Scoring a high CIBIL score is challenging, especially if you are around 600 score. But with the right approach you can boost your score for 750+ range. With strong CIBIL score you will get better financial opportunities, from low-interest loans to premium credit cards. This guide will help you to improve your score with effective strategies through the steps, by the end of this guide you will have clear knowledge on how to increase CIBIL score from 600 to 750.
What is a CIBIL Score and Why Does it Matter?
Before going to strategies to improve your CIBIL score, let’s know about CIBIL score, The CIBIL score is a three digit number ranging from 300 to 900. This score is calculated based on your credit history by credit bureaus, it shows your credit profile and worthiness to banks, lenders who can assess your loan or credit card applications. below you can see the breakdown of credit score ranges and their implications.
| Score Range | Rating | Implications |
| 300-599 | Poor | High risk of loan rejection |
| 600-749 | Fair | Possible approval but likely with higher interest rates |
| 750-900 | Excellent | Easier loan approvals and lower interest rates |
Raising your CIBIL score to 750 or above enhances your financial health and credit worthiness, positioning you as a responsible borrower.
Common Reasons for a Low CIBIL Score
Let’s see what makes your score down, Here are the major common mistakes done by 70% of people.
- Missed Payments or Late Payments: Not paying your credits card bills or loan EMIs on time.
- High Credit Utilization Ratio: Using more than 30% of your credit limit indicates credit dependency, which effects your credit score.
- Multiple Credit Inquiries: Applying Multiple credit applications at short time period leads lowering your existing score, because as many applications you apply Multiple Inquiries increases on your credit profile at short time period.
- Outstanding Debt: Carrying unpaid debt balances, like high-interest accounts like credit cards can drop down your score
- Limited or Poor Credit Mix: Having only one type of credit like credit card only doesn’t show a good balanced credit profile.
By identifying above mistakes, you can take actions to improve your CIBIL score by avoiding this mentioned mistakes.
Step-by-Step Guide How to Increase CIBIL Score from 600 to 750
Step 1: Review Your CIBIL Report Frequently
First step towards improving credit score is reviewing your credit report frequently. take a close check for any inaccuracies and understand what’s impacting your score, it gives you a starting point for improvement. Here’s how to review your credit report
- Get a Free Report: Request a free report annually from credit bureaus like CIBIL, Experian.
- Spot Errors: Check for any duplicate accounts, outdated information or unauthorized accounts without your knowledge.
- Dispute Errors: If your find an error, contact to credit bureau and rise an ticket for dispute with the valid proof and get it corrected.
Step 2: Pay Off Outstanding Debt
It is very important to clear outstanding balances on credit cards and loans without failure. High outstanding debts is a signals of risk for lenders and easily identified by your credit score.
- Debt-Payment strategies: Use the snowball or avalanche method to clear your debts without failure, In the snowball method you pay off the smaller debts from your outstanding debts list. In avalanche method you can focuses on high interest debts first where it helps you to reduce the interest.
- Set Up Payment Reminders: Setting up payment remainder is an better way of notifying yourself to pay your bills on time and make an adjustments of fund to clear debt before it’s due.
- You can use any reminder apps or calendars, OneScore App is an best for the users to monitor your every credit reports from smart phone and also provides you payment reminder every month before due payments.
Step 3: Mange Your Credit Utilization Ratio
Credit utilization ratio is the percentage of your available credit limit in use, Managing a utilization rate below 30% will effective improve your score.
- Request a credit limit Increase: By requesting your debt provide like credit cards with your positive credit health will increase your chances of getting higher credit limit which also increases your utilization ratio value with the same rate 30% which helps for smooth spending without affecting.
- Pay off Balances Mid-Cycle: Paying off your credit card balances on time or before the billing cycle ends can improve your utilization ratio faster.
Step 4: Build a Consistent Payment History
Paying all your credit cards, loans and utilities bills on time is best method of keeping your positive payment history. This practice behavior has a positive impact on your CIBIL score.
- Use Auto-Debit: Setting up auto debit will help you to pay your bills without failure and also reminders your before any auto debt placed.
- Make Partial Payments: If necessary you can make partial payments where some of the lenders, credit cards will give this offer where you can pay the minimum due as well. they also provide EMIs option with minimal interest, utilize the features and avoid the due and over debts.
Step 5: Limit New Credit Applications
Applying multiple credit application at short period will reduces your score. Each application will create each new credit inquiry, to prevent this mistakes all the below steps.
- Avoid Unnecessary Loans or Credit Cards: Don’t rush for all credits like loans, credit cards at a time, wait till your CIBIL score to improve if it has less score, stick not to apply credit applications more than one within 6 months period.
- Use a personal loan only if need: Personal loan is for larger expenses as it shows the responsible borrowing if you pay your bills on time. But if you fail to repay the bill or due it leads to over debt by addon interests and your credit profile will be blacklist which is an risk for many lenders. So create personal loan only if it is need and make sure to repay all the due.
Expert tips to Boost Your CIBIL Score
With all the basic knowledge of credit score, here are the additional tips/strategies to boost your credit score.
- Become an Authorized User: If any of your family member have good credit history, ask them to add you as an authorized user on their credit card. This will definitely helps to improve your credit score with minimal effort and time.
- Secured Credit Cards and Credit Builder Loans: This are smart way of building credit score for individuals without any income proofs or credit history.
- Secured Credit Card: Many banks and Credit cards providers offers this Secured credit card, basically this credit card is provided for you by creating some amount of Fixed deposit as collateral. This is best way where your will get bank interest on your Fixed Deposit, also improves your score by using the credit card below 30% utilization ratio and repay all the dues.
- OneCard is the credit card provider who provides 110% limit on your fixed deposit in the market. you can also explore more other secured credit cards in the market.
- Credit Builder Loan: You can start with small amount of loan which you are capable of repaying the dues to build the lenders trust and showing you can handle the loan repayments on time without failure.
- Secured Credit Card: Many banks and Credit cards providers offers this Secured credit card, basically this credit card is provided for you by creating some amount of Fixed deposit as collateral. This is best way where your will get bank interest on your Fixed Deposit, also improves your score by using the credit card below 30% utilization ratio and repay all the dues.
Monitor and Track Your Progress
Improving your score is a game changer journey. Tracking your score regularly can help you to adjust your strategies as needed.
- Use a Credit Monitoring Service: Services like OneScore, Experian or CIBIL’s official portal offer monitoring tools. It helps you to identify if there are any duplicate credit accounts placed without your knowledge. Also you can see the number of inquiries placed on your profile
- Set Payment Reminders for Bills and Loans: To maintain a strong payment history, set reminders for all your payments and pay all your dues without failure. Use OneScore or any other apps for reminders.
Common Myths on CIBIL Score
There are many myths about credit scores in peoples mind. Let’s clear all the myths
- Myth 1: Checking your CIBIL score Frequently will reduce your score.
- Reality: A self-check soft inquiry will not impact on your score, but only hard inquires which are made by lenders, banks will impact on score. Credit score decreases as number of hard inquires increases.
- Myth 2: Closing old credit accounts will boosts your score.
- Reality: Closing Old credit accounts will not impact on your score, But the old accounts repayments history will impact and also shows you credit history including late payments .
- Myth 3: A Higher Income Guarantees a high CIBIL Score.
- Reality: No, CIBIL score is not depends on your income, it depends on your credit history, credit habits and repayments history which impacts on your credit score range.
How Long Does It Take to Increase Your CIBIL Score?
Here’s an approximate timeline to improve your CIBIL score from 600 to 750:
- 1–3 Months: Focus on correcting errors, clearing small debts, and reducing credit utilization.
- 3–6 Months: Maintain a consistent payment history, avoid new credit applications, and build your credit profile.
- 6–12 Months: Long-term strategies, like mixed credit types, maintaining low utilization, and paying EMIs on time, should bring you closer to 750 score range.
By following the above timeline and best practicable strategies you will be able to achieve long term good credit health within 12 months of time period.
Frequently Asked Questions
When should I check my CIBIL score?
Answer: Check every few months or before applying any major credit application.
What’s the fastest way to increase my score?
Answer: There is no fastest way to increase your score, but by paying down existing debt, correct any errors in your report and following the above strategies will leads to improve your score.
Will late repayments will hurt my CIBIL score?
Answer: Yes, late repayments will effects your CIBIL score as well interest/fees will be applied for delay in repayments of credit bills.
Conclusion
Improving your CIBIL score from 600 to 750 isn’t an overnight task, but with the right steps and consistent effort will improve your score to 750+ range. Pay attention to timely payments without failure, reduce your credit utilization, and avoid unnecessary new credit applications. Staying patient will pay off in the form of better financial opportunities, whether it’s a low-interest loan or a credit card upgrade.