Your CIBIL score is more than just a number—it’s a reflection of your creditworthiness. A good score can open doors to loans, credit cards, and better interest rates, while a low score can make financial progress more challenging. If your score hovers around 600, you may find yourself classified as “average,” limiting your access to credit.
But the good news is that with careful planning and disciplined financial behavior, you can take your CIBIL score from average to excellent. In this guide, we’ll explore practical steps for achieving that, including actionable tips on how to increase CIBIL score from 600 to 750.
Understanding Your CIBIL Score
Before diving into improvement strategies, it’s important to understand what affects your CIBIL score. Your score ranges between 300 and 900, with higher numbers indicating better creditworthiness. Factors influencing your score include:
- Payment history: Timely repayment of loans and credit card bills is crucial.
- Credit utilization ratio: The proportion of your available credit you actually use.
- Credit mix: Having a healthy mix of secured (home loan, auto loan) and unsecured (personal loan, credit card) credit.
- Credit inquiries: Frequent loan or card applications can temporarily lower your score.
- Length of credit history: A longer, well-managed credit history positively impacts your score.
Step 1: Review Your Credit Report
Start by obtaining your CIBIL report to check for inaccuracies. Sometimes, errors like wrong account details or delayed payments that you actually made can hurt your score. Dispute any discrepancies immediately. This is the first step in learning how to increase CIBIL score from 600 to 750.
Step 2: Make Timely Payments
Your payment history has the largest impact on your CIBIL score. Set up reminders or auto-debit facilities to ensure you never miss a credit card or loan payment. Even a single late payment can significantly lower your score, so consistency is key.
Step 3: Reduce Your Credit Utilization Ratio
Ideally, you should use less than 30% of your total credit limit. If your credit card limit is ₹1,00,000, aim to keep your outstanding balance below ₹30,000 at any given time. Lowering your credit utilization demonstrates financial discipline, a factor that helps boost your score toward 750.
Step 4: Diversify Your Credit Mix
Having a combination of secured and unsecured loans can improve your score. If you only have credit cards, consider small personal loans or EMIs that you can comfortably manage. This adds depth to your credit profile and is a proven method to move from an average to excellent score.
Step 5: Avoid Frequent Credit Applications
Every time you apply for credit, a hard inquiry is made on your report. Multiple inquiries within a short period can signal financial stress and negatively impact your score. Be selective and strategic with your loan or card applications.
Step 6: Keep Old Accounts Active
Length of credit history contributes to your score. Closing old accounts might seem responsible, but it can shorten your credit history and reduce your score. Keep old accounts in good standing to maintain a robust credit profile.
Step 7: Monitor Progress Regularly
Improving your CIBIL score is not an overnight process—it typically takes several months of disciplined behavior. Regularly monitoring your score helps you track progress and make adjustments as needed.
Final Thoughts
Raising your CIBIL score from 600 to 750 is entirely achievable with consistency, discipline, and smart financial management. By reviewing your credit report, paying bills on time, managing credit utilization, and maintaining a healthy credit mix, you can transform your average score into an excellent one. Remember, improving your credit score is a journey, not a sprint, and each small step brings you closer to better financial opportunities.
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