How to Increase CIBIL Score from 600 to 750?

Increase CIBIL Score

In the world of lending and borrowing, one key factor that really matters for loan approval is your Credit Information Bureau (CIBIL) score. This is a three-digit number, ranging from 300 to 900, that measures how reliable you are with credit and affects the loan conditions set by banks.

In this article you will know how having a good CIBIL score, ideally 750 or more, is crucial for getting the best loan terms. On the other hand, if your score is below 650, you might face higher interest rates or even have your loan application rejected. There are chances to get a loan at low CIBIL score, but the interest might be on the higher side. Here are some steps for you to improve your credit score and get better deals on loans.

Steps to Increase CIBIL Score from 600 to 750

  • Pay on time
  • Raising a CIBIL Dispute
  • Keeping Credit Utilization Ratio Low for a High Score
  • Credit Score Checks
  • Holding onto old credit cards
  • EMI payment is crucial

Deeper into the details of CIBIL scores, highlighting how they play a big role in how loans work. To understand and manage this important aspect of financial dealings, these articles together explore practical tips to raise your CIBIL score from 600 to 750, providing a guide for borrowers looking for better loan terms

Pay on time

Paying off the full amount due on your loan at the end of each cycle is one of the most effective ways to improve your credit score. Payment history holds the most weight: Credit scoring models heavily prioritize your payment history as an indicator of your creditworthiness. Making consistent on-time payments shows lenders you’re responsible and capable of managing your debt.

While paying the minimum due might seem manageable, it often leads to accumulating interest and accruing debt over time. By this, you avoid potential interest charges, and paying off your loan early shows you can handle larger financial commitments.

Raising a CIBIL Dispute

Absolutely! Raising CIBIL disputes can be a crucial step in improving your credit score and ensuring the accuracy of your credit report. Here’s a breakdown of the process in an elaborate way.

 A CIBIL dispute is a formal request you raise to CIBIL if you find any such inaccuracies in your report. Inaccurate information can negatively impact your credit score, making it harder to get loans, credit cards, or even rent an apartment.

Correcting errors can highly improve your score, for better financial opportunities. It helps maintain the overall accuracy and integrity of the credit reporting system. Carefully review your CIBIL report and pinpoint any inaccuracies.

Keeping Credit Utilization Ratio Low for a High Score

Credit utilization ratio (CUR) is a crucial factor in determining your credit score. It simply refers to the percentage of your credit limit that you’re currently using. Essentially, it tells lenders how “heavily” you’re relying on available credit. Keeping your CUR low is key to maintaining a healthy credit score.

In Lenders’ view, Lenders want to see responsible borrowers who manage credit cautiously. A high CUR (exceeding 30%) indicates you’re maxing out credit, which could imply financial overextension and potential risk of default. CUR heavily influences your credit score (around 30%!). Keeping it below 30% (ideally even lower) shows a responsible credit usage and boosts your score.

Credit Score Checks

Credit score checks can be confusing, but understanding the difference between soft and hard credit checks is essential for maintaining a healthy score.

  • Soft Inquiries: These are credit checks initiated by you or any entity with your permission, like banks offering pre-approved loans. Checking your own credit report regularly falls under this category. Soft inquiries do not affect your CIBIL score.
  • Hard Inquiries: These are credit checks initiated by lenders when you apply for new credit, like a loan or credit card. Each hard inquiry leaves a temporary mark on your report, and multiple inquiries within a short period can lower your score.

While soft inquiries have no impact, frequent hard inquiries can temporarily bring down your score. This is because lenders might interpret frequent applications as a sign of financial instability or increased risk. However, the impact usually diminishes within a few months, and responsible credit management over time can compensate for it.

Holding onto old credit cards

This can be a surprisingly beneficial strategy for bolstering your credit score. This factor impacts your score, contributing about 15%. The longer your credit history, the more confident lenders feel in your ability to manage credit responsibly. Closing an old card reduces your overall credit history length, potentially harming your score.

This measures the percentage of your total credit limit you’re currently using. Ideally, you want to keep this ratio below 30%. Closing an unused card decreases your available credit, while your actual balance (even if it’s zero) remains the same. This can inadvertently increase your utilization ratio and negatively impact your score.

EMI payment is crucial

CIBIL score heavily weighs your payment history, particularly your ability to repay debt consistently and on time. Timely EMI payments showcase your creditworthiness and responsible borrowing habits.

Paying your EMIs on time consistently increases your CIBIL score, making you a more attractive borrower to lenders. This translates to potentially better loan terms and interest rates in the future.

Conversely, late or missed payments, even by a few days, significantly harm your CIBIL score. This can lead to difficulty obtaining loans, higher interest rates, and even legal repercussions in extreme cases.


A higher CIBIL score (ideally above 750) significantly increases your chances of getting your loan application approved. Maintaining a good CIBIL score encourages responsible financial habits like timely payments and debt management, ultimately leading to improved financial health and stability.



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