How to Increase CIBIL Score from 600 to 750: Simple Steps to Boost

Estimated reading time: 6 minutes

A CIBIL score plays a crucial role in determining your creditworthiness in India. It is a three-digit number that helps lenders decide if you qualify for loans. To secure loans with favorable terms, a score of 750 or above is essential. It shows lenders that you are a low-risk borrower, making it easier to get approved and enjoy benefits like lower interest rates. How to increase CIBIL score from 600 to 750? Focus on timely payments, manage your credit utilization wisely, and maintain overall financial discipline to gradually boost your score.

However, improving your CIBIL score from 600 to 750 is not an overnight process. Understanding how to increase the CIBIL score from 600 to 750 requires consistent effort and disciplined financial habits over time.

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Understanding CIBIL Score

A CIBIL score is a three-digit number that shows how creditworthy a person is. It ranges from 300 to 900. The higher the score, the better. A score of 750 or above is excellent and makes it easier to get loans with favourable terms. On the other hand, a score of 600 is below the desired level and can lead to challenges when applying for credit.

Factors that impact your CIBIL score include how you manage your repayments, your credit usage, and how often you apply for new credit. Paying your loans and credit card bills on time boosts your score. If you delay or miss payments, it can hurt your score. Using too much of your credit limit also lowers your score. Ideally, keep your credit utilisation under 30% of your limit. Finally, too many credit applications within a short time can bring your score down, as it shows financial stress.

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Steps to Increase CIBIL Score from 600 to 750

Improving your CIBIL score from 600 to 750 requires a few smart habits and consistency. By following these steps, you can build a better score and improve your chances of getting loans easily.

1. Pay Your Dues on Time

Making payments on time is one of the best ways to increase your CIBIL score. Late payments lower your score, while timely payments boost it. Always pay your full dues on credit cards and loans. Paying only the minimum amount can hurt your score.

2. Keep Credit Utilisation Below 30%

Your credit utilisation is how much credit you use compared to your credit limit. A higher usage signals that you rely too much on credit, which can lower your score. Keep your usage below 30% of your total credit limit to show responsible credit management.

3. Limit Loan and Credit Card Inquiries

Applying for too many loans or credit cards in a short time harms your CIBIL score. Each inquiry lowers your score slightly. Avoid applying for multiple loans or cards at once. Space out your credit applications and focus on managing your current credit well.

4. Maintain a Healthy Credit Mix

Lenders like to see a good mix of secured and unsecured loans. Secured loans are like home or auto loans, while unsecured loans include credit cards. Having both types shows you can handle different forms of credit responsibly, which helps improve your score.

5. Hold On to Old Credit Cards

Keeping old credit cards active helps your score in two ways. First, it shows a longer credit history, which is good for your profile. Second, it helps lower your credit utilisation ratio, as you have more available credit. So, don’t close your old credit accounts if you can avoid it.

6. Regularly Monitor Your Credit Report

Checking your credit report often ensures that there are no errors pulling down your score. Sometimes, mistakes in your report can lead to a lower score. If you spot any errors, get them corrected right away to see an improvement in your score.

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How Long Does It Take to Increase Your CIBIL Score?

Improving your CIBIL score from 600 to 750 doesn’t happen overnight. It takes time, effort, and discipline. Typically, it can take months or even years depending on your financial habits.

The key is to remain consistent. Stick to paying your bills on time, keeping your credit usage low, and managing your loans wisely. By staying disciplined and avoiding quick fixes, you will gradually see your score rise. Keep in mind, that slow and steady improvements are more sustainable and effective in the long run.

Benefits of a High CIBIL Score

Achieving a CIBIL score of 750 or above offers several benefits, such as:

• Easier Loan Approvals:
  Lenders see you as a low-risk borrower, making it easier to get your loan approved.
  
• Lower Interest Rates:
  A higher score qualifies you for better interest rates, saving you money over time.
  
• Flexible Repayment Terms:
  Lenders may offer you more flexible repayment options, making loan management easier.
  
• Stronger Negotiating Power:
  You can negotiate better terms, such as reduced fees or longer tenures, thanks to your strong credit profile.

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Conclusion

Improving your CIBIL score from 600 to 750 is a gradual process that requires patience and consistency. By paying your dues on time, managing your credit usage, and avoiding unnecessary credit inquiries, you can steadily boost your score. Financial discipline and responsible borrowing habits play a key role in achieving your goal. It is essential to remember that building a solid credit profile takes time, but the rewards are worth the effort.

Following these steps will help you understand how to increase your CIBIL score from 600 to 750 and secure better financial opportunities in the future. If you need expert guidance to get a home loan, Credit Dharma can assist you. Our experts provide personalised advice to help you secure the best loan terms.

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Frequently Asked Questions