Keeping your credit score high is always a challenge in this credit-driven economy. Your credit score and creditworthiness are negatively impacted if you default, pay an EMI late, or respond to multiple inquiries in a short amount of time. However, despite your best efforts to maintain a high credit score, there are times when circumstances beyond your control cause it to suffer. How to Increase CIBIL Score from 500 to 750
As a result, you can quickly improve your credit score in such a situation by making well-informed decisions and adjusting your spending habits. Check Your Score
Moves toward Increment CIBIL Score from 500 to 750
Keeping a Good Credit Utilization Ratio As a general rule, it’s good to keep a good credit utilization ratio. One must use less than 30% of the total limit to be available for this.
Avoiding the Closure of Older Accounts The credit bureaus consider older accounts to be good evidence of your long-term relationship with lenders. This makes the CIBIL score go up even more.
Improving Installment History: A superior installment history assumes the most essential part in Expanding the CIBIL score.
Monitoring Credit Reports Individuals need to check their credit reports on a regular basis—not always—to understand their creditworthiness and, if necessary, take steps to improve their CIBIL score.
Multiple Credit We should avoid applying for multiple loans, credit cards, and other forms of debt all at once because doing so often paints a picture of a person who relies heavily on credit. The credit bureaus immediately track this behavior, which further lowers the credit score.
Don’t ask about other credit cards Asking about other credit cards can hurt a person’s credit score. Therefore, one ought to steer clear of this and instead conduct research on online platforms rather than contacting credit card companies, thereby assisting him in raising his CIBIL score.
Pay EMIS on Time It is always a good idea to make sure that no EMI or credit card payment is missed. This must be completed by the due date or earlier. Any delay in or failure to make a single payment could result in penalties and a lower credit score as a whole. Get Loan in 2 Days
Always pay the entire EMI amount Many people accumulate a significant amount of debt by only making minimum payments. However, you should be aware that doing so will cause your credit score to drop even further because the remaining balance will continue to bear interest. On the other hand, depending on the length of the loan, making regular, on-time payments could help you raise your credit score in as little as one to two years.
Pay Off Your Card Balance With a Personal Loan, A personal loan has an interest rate that is lower than that of credit cards (11.99%* and higher). Paying off your credit card balance with a personal loan and then making regular, more manageable monthly EMIS payments is a good strategy.
Therefore, if the aforementioned steps are diligently followed, there is no reason why a person cannot raise his CIBIL score from 500 to 750.
