How to Increase CIBIL Score from 600 to 750?

In today’s credit-driven market, your CIBIL score is a critical factor when applying for loans or credit cards. It is used to assess the creditworthiness of a borrower and determine whether they qualify for a credit card or any type of loan. Therefore it is very important to know, How to Increase CIBIL Score from 600 to 750?

A poor credit score can lead to your application being rejected or approved with high interest rates. Therefore, it is essential to maintain a good credit score. And today, we’re going to discuss how to increase your CIBIL score from 600 to 750.

What is a Good CIBIL Score?

Before jumping on how to increase CIBIL score, it is important that you understand what actually is a good CIBIL score. The following table shows a breakdown of credit score rating along with its possible impact.   

Credit Score	Rating	Impact on Loan Eligibility
750 – 800	Excellent	Easily qualifies for loans at low interest
700 – 749	Good	Likely to get loans at competitive rates
650 – 699	Fair	May get loans, but at higher interest rates
600 – 649	Poor	Difficult to get loans without higher costs
Below 600	Very poor	Loan applications are typically rejected

In case you don’t know how to check your CIBIL score, check out our blog on how to check your CIBIL score for free.

Now, that you know how does a good score look, here are 5 steps that can help you improve your CIBIL Score

1. Make Timely Payments

Your payment history has the biggest impact on increasing your CIBIL score. Missing or delaying even a single EMI or credit card payment can hurt your score. It’s essential to pay all your bills on time, every time.

• Set up automatic payments to avoid late fees.
• Clear pending dues immediately to avoid negative impact.
• Don’t just pay the minimum due, clear the full bill. 

On-time payments contribute significantly in improving your credit score over time.

2. Maintain a Low Credit Utilization Ratio

Your credit utilization ratio is the percentage of credit you use compared to your total credit limit. Some people believe that they can use their credit cards for maximum benefit by utilizing the entire limit. However, a higher ratio indicates higher dependence on credit, which can negatively affect your credit score.

• Aim to keep credit card spending under 30% of your available limit.
• Increase your credit limit, but keep your spending the same.

By reducing your credit utilization, you can quickly improve your credit score.

3. Avoid Multiple Loan Applications

Each time you apply for a loan or credit card, lenders conduct a hard pull on your credit report. Multiple applications within a short period result in multiple hard pulls which can lower your CIBIL score as it signals poor financial planning. 

• Avoid applying for multiple loans or credit cards in quick succession.
• Only apply when necessary to protect your score from unnecessary dips.

Limiting hard pulls is key to maintaining a stable and improving CIBIL score.

4. Maintain a Balanced Credit Mix

Having a healthy mix of both secured and unsecured loans positively impacts your score. Lenders prefer individuals who can manage various types of credit, like a home loan (secured) and a credit card (unsecured).

• Maintain a balanced portfolio of different credit products.
• Avoid relying too heavily on one type of credit, such as credit cards.

A balanced credit mix shows responsible financial behavior, which can quickly improve your credit rating.

5. Keep Older Credit Accounts Active

The age of your credit history plays a critical role in your CIBIL score. The longer your credit history, the better your credit score. Closing old accounts can reduce the average age of your credit and negatively affect your score.

• Keep your oldest credit card accounts open, even if rarely used.
• Use old cards occasionally for small purchases and pay off the balance.

A longer credit history signals stability, helping to increase your CIBIL score over time. You can read how much time it takes to build a CIBIL score first time for better understanding.

Improving your CIBIL score from 600 to 750 takes time, but with consistent financial discipline, it is entirely achievable. Focus on timely payments, managing your credit utilization, and maintaining a balanced credit mix. These practices will not only help increase your score from 600 to 750 but also improve your chances of securing loans at better interest rates.

You can also check out our blog on how to use your credit card for maximum benefit and what to do when CIBIL score goes down?

Remember, how much time it took you to generate a CIBIL score for the first time. So if you’re just starting or rebuilding your credit, patience and responsible credit usage are key to reaching that 750 mark.