As you might already know that CIBIL score is just a 3 digit number which is used to explain your past financial and credit history that is taken into consideration by loan facilities, banks and everyone when you look to fetch for a loan, credit and more.
CIBIL Score range is valued from 300 to 900 where having 300 will expect you to get rejected for a loan or credit card you might apply for, but if you simply improve your score to near to 900 then your chances of getting better credit out in the market will improve vastly.
In this ever changing world of finance and modern requirements, you might come across a need for financial options on different things and this is when you need to have a good CIBIL score because only if your score is above 750 or 800 then you would be accepted at any of the financial services.
It basically means that if you have a bad CIBIL score then your chances of getting credit will be lowered heavily which means you might not be able to receive the loan, credit card, or the EMI on any product you want would not be accepted.
One of the important aspects is that a CIBIL score can be improved to 750 and more but it sometimes takes more than 3 months to maintain better financial stability, and if you are in pique to get better credit and loans? Then you should follow our below article which will help with the steps to be followed to improve your CIBIL Score from 0 to 750 in quick time.
7 Steps to follow to Improve CIBIL Score Quickly?
Basically it takes precision for anyone who wants to improve their CIBIL Score to quickly improve it and in order to do so you can follow our list of 10 steps which will surely help you get through the stage of lower credit score of 300 and move towards the financial stable end of 750+.
Repay Bad Credit
In case if you have a bad score of near to 300 or 500 then it means that there have been pending EMIs and credit due to be made to loans and credit card service So, moving forward before you try out any more tips you first have to repay all your owned credit and make clear of all the pending credit card due along with loans emis that you have not yet paid. This will make your credit score timeline a little perfect.
One of the bad situations that might come out of you not being able to make the credit payment on time can lead to creditors blocking and banning your PAN details which will lose your score and opportunities to apply for loans and more.
Credit Card & Credit Usage to be minimum
If you always use some type of credit card or online credit facility to get money every month then it should be minimized and in terms that no extra burden should fall on your account which you might not be able to pay on the EMI timeline dues, and in this case, you should be only using 50% of your credit limit for any of the cards or services.
At the same time, it should not appear that you have completely stopped using credit which might affect your score in turn as well, and the key reason here is that if you have used your credit to a minimum during this time then it shows your leverage to effectively use the present credit.
Limit Credit or Loan Applications
In case if your score is already low then during the present span of months do not get a new loan or credit card because this will only affect your credit limit where you have to pay multiple EMIs again.
So, do not over do the applications for any loan or credit facilities that you want to apply since your score is low now and most probably any service would think twice before giving you credit, and even if you get credit then the interest rates would be higher than normal which will pile interest amounts over EMI dues causing you a money blockage.
Remove Risk from your Credit Score
In this modern world, every financial company, credit service works on the risk model which applies to all the humans who have a credit score and this model ascertains them about the individuals who have shown high risk movements on their credit facilities and more.
The high-risk movements can be applying for more than necessary credit cards, loans, EMI’s, products range higher than your limit, and this basically gives them an understanding that you are not doing financially well and need more credit to solve your issue at hand which will put you on a high-risk list where your applied loans, EMI and credit will be rejected.
Calendar & Track your EMIs & Payment Dues
One of the key reasons where individuals lose their credit score is not just because they do not have money but they fail to pay on time, and Yes, if you have a set of emis which fall on different days then it is really vital that the amount to be deducted should be available in your account a day before so that you are secure and alarmed that all the emis will be deducted successfully.
So you can create a calendar of your own where the days when you either have EMI or any payment due till be marked with the amount to be paid timely. This will keep you on track allowing you to have a perfect credit timeline without any lags in the payment.
Do Not Disregard or Cancel your Old Credit Cards
One of the simple ways you can improve your credit history or ability is to have your old credit card and after years of usage you will receive better credit limits from the banks for your usage which has a positive impact on your score.
Basically, if you are in a pitch then use your credit card to a limit but not too extensively as well allowing you to have a clear understanding of your spending being made.
The reason behind this is that you keep on using your old credit card which shows you are financially stable, next banks will improve your credit card limit for being a loyal customer, and finally, due to the low credit utilization ratio, you will get a better CIBIL score.
Take Loans only on a Longer Tenure
Now that you have credit needs then if you are applying for a loan then it is a must that you should be availing a credit loan with a longer tenure which first will provide you with a low emi per month helping you to manage your budget.
Secondly, your credit performance will look vivid because you will have financial stability of making payments per month on the loan. But if you are rejected from one loan service then do not try for more than 2 – 3 services because the results would be the same and the reason is you might still have a credit score below 800.
How to Increase CIBIL Score to 800?
One of the important accounts that people tend to forget are their joint accounts and co signed accounts which are used for business and family purpose where in case if you miss any of the payments then surely your CIBIL score will not be 800.
But it can be improved from what you are right now by following the process to maintain a healthy credit life style where you use your credit cards, loans, personal and home loans but not too extensively that it might dampen your current score as well. If you are truly aiming to reach the score of 800 then it will take anywhere from 3 to 6 months minimum time if you follow all the above guidelines and tips.
The same way you can sometimes have lower expectations as well and that is truly understandable from our perspective where someone with a 300 score would only want to reach 750 and more. Below are few of the most seen scenarios of people who want to improve their CIBIL Score.
Increase CIBIL Score 600 to 750?
It takes somewhere between 3 – 4 months for a 600 score to be increased to 750 if the above tips and a proper credit line is followed.
Increase CIBIL Score from 300 to 750?
While if you are at the lowest score ike 300 and want to have a 750 score then you might take nearly 4 – 6 months of time from when you start to manage all your expenses, credit card, bills, emis and accounts like co signed and joint accounts as well.
Improve CIBIL Score after Settlement & Written Off?
If you have taken a loan or credit in the past where the results have ended in either the settlement or written off then it will surely reflect badly on your CIBIL Score because no credit facility or bank would like to lend credit to a high risk profile. In such a case you need to start paying all your due amounts and get written messaging from the previous creditors that the issue has been resolved.
How can you increase your CIBIL Score quickly?
If you are tensed due to your low credit score then it is right to think about it now because it is not an easy task for anyone to improve their CIBIL score. But at the same time it is not difficult to improve your score quickly as well because all it takes is maintaining a better credit card lineup with a mix of different types of card. On the other hand if you have a loan applied then ensure that the tenure is a longer one with 5 – 10 years minimum which gives crediter a sense of low risk on your profile thus improving your CIBIL Score. Follow our list of ways of improvement and surely will see better results on your score moving forward.
What are the Reasons for Poor CIBIL Score?
If you are wondering why your CIBIL Score has plunged down from where it should have been like 750 or more then there could be a lot of reasons behind your score being lowered and we have discussed some of the key reasons below which might cause this issue.
- Credit card emi payment delay
- Loan emi payment delay
- Credit limit exceeding
- Utilizing credit cards limitlessly
- Bad credit due to settlement
- Bad credit due to written off
The key aspect why you should know what reason has caused your CIBIL Score to be lowered is for you to understand and learn what to improve your credit efficiency that will effectively reflect on your score later in a couple of months.
In this way, if you follow our article and utilize all the methods we have shared then you would be able to increase your CIBIL Score to 750 easily.