How to Increase CIBIL Score from 500 to 750?

8 Easy Steps to increase your CIBIL score from 500 to 750

1. Lowering Credit Utilization Ratio

As a thumb rule, it is favourable if a good credit utilization ratio is maintained. For this one needs to use less than 30% of the total available limit

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2. Avoiding Closure of Older Accounts

Older accounts show your long term association and connection with the lending institutions, which is considered good by the credit bureaus. This further helps to improve CIBIL score.

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3. Improving Payment History

An improved payment history plays the most vital role in Increasing CIBIL score.

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4. Monitoring of Credit Reports 

We should avoid applying for multiple loans, cards and other debt instruments at once as it tends to depict a picture of one who is heavily dependent on credit. This behaviour is immediately tracked by credit bureaus which further leads to a fall in the credit score.

5. Multiple Credit

We should avoid applying for multiple loans, cards and other debt instruments at once as it tends to depict a picture of one who is heavily dependent on credit. This behaviour is immediately tracked by credit bureaus which further leads to a fall in the credit score.

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6. Pay EMIs on Time

It is always a very good idea to ensure that one never misses a single EMI or credit card payment. This should be done on or before the due date. Missing a single payment or any delay in the same could lead to penalty charges as well as a reduction in the overall credit score.

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7. Pay Off Your Card Balance via Personal Loan

Making regular ontime payments could help you improve your credit score over a period of 1-2 years (depending on the tenure of the loan).

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8. Pay your EMIs in Full

Paying only the minimum amount due or a partial amount will cause interest to accumulate and increase your debt, thereby reducing your credit score.

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