How can I increase my CIBIL score?

You can increase your CIBIL score by: - Analysing your credit report and clear default or delayed payments. - Increasing your credit limit - Opting for a healthy credit mix - Managing your EMIs effectively so that they are feasible - Keeping track of previous loans that are successfully repaid - Using credit cards diligently - Making timely repayments - Avoiding hard enquiries

6 Smart Tips to Increase CIBIL Score Above 800

How to Increase Your CIBIL Score Above 800: 7 Proven Methods_Banner_WC

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How to Increase Your CIBIL Score Above 800: 7 Proven Methods_WC

4 min 24 Jan 2023

Highlights

Tips to Improve your CIBIL Score Above 800
What is Considered a Good CIBIL Score
What are the Factors Affecting the CIBIL Score
Benefits of Maintaining a Good CIBIL Score

A CIBIL score is a three-digit number representing the creditworthiness of an individual. It ranges from 300 to 900, the closer your score is to 900, the better it is. Financial institutions consider 750 as a decent number and they will conduct through CIBIL checks before sanctioning a Home Loan. Hence, it is recommended to make all the efforts to increase the CIBIL score to enhance your loan eligibility in the future.

6 Easy Tips to Improve Your Credit Score Above 800

A low CIBIL score can lead to rejections when you apply for a credit card or loan. Also, multiple rejections can further decrease your CIBIL score. Improving your CIBIL score might seem challenging but it is an achievable task. Increasing your CIBIL score can increase your chances of securing credit facilities in the future. Therefore, if you are wondering how to improve your CIBIL score above 800, here is the course of action you can take:

1. Monitor Your Credit Report

Regularly monitoring your credit report is essential for maintaining a healthy credit profile. Reviewing your report helps you identify inaccuracies, unauthorised activity, or errors that could negatively impact your credit score. By addressing issues promptly and ensuring accurate information, you can maintain your financial portfolio and take proactive steps to improve your creditworthiness.

Additional Read: How to Check CIBIL Score for Free with PAN Card

2. Opt for a Healthy Mix of Credit

A healthy credit mix of unsecured and secured loans assures the lender of your ability to repay various types of loans easily. Having a combination of a mortgage loan, personal loan, auto loan, and so on, is generally considered a good mix of credit that is sure to keep the CIBIL score in good standing.

3. Keep Track of Your Old Debts

Keep a record of all the successful payments made in the past in your credit report. This will give the lender a positive impression of you as someone who settles dues and they will see you as a reliable, low-risk customer.

4. Use Credit Cards Wisely

If you wish to improve your CIBIL score, you should start using your credit card diligently. You can begin by making low-ticket online purchases using your credit card and repay the amount at the earliest. This will reflect well on your credit history and add to your credit score.

5. Make Timely Payments

One of the key factors that decide your credit health is your debt responsibility. Ensure that you are able to keep up with all your EMI commitments and repay any amount owed on time.

6. Avoid Unnecessary Hard Loan Enquiries

Another thing to bear in mind is that every time a lender conducts a hard loan enquiry, your credit score may be affected. Ensure that you only make loan enquiries when you are sure of your loan eligibility and have conducted your research, so you minimise multiple enquiries at the same time.

Additional Read: Smart Things to Consider Before You Apply for a Home Loan

What is Considered a Good CIBIL Score?

The CIBIL score ranges from 300-900 but the higher the number, the better the chances of getting the loan approved. Most lending institutions consider 750 or higher as the ideal score for quick and smooth loan approvals. If your CIBIL score falls below the desired limit, you still have a chance to raise it to 800. The following table shows the credit score and corresponding rating:

Credit Score	Rating
800 and above	Excellent
750 – 800	Very Good
625– 750	Fair
625 and below	Low

As a prospective borrower, it is always a good idea to know your CIBIL score and find out how it translates to the lender. For those with a credit score below 625, applying for a loan could be challenging owing to the low score. Nevertheless, one should monitor the report and address the factors that could possibly be affecting the CIBIL score.

What are the Factors Affecting CIBIL Score?

Before moving on to how to improve your CIBIL score, here is a look at the factors that affect the credit score in the first place:

Credit utilisation ratio
Outstanding debts, credit card bills, loans
Number of credit applications
Accuracy of the credit report
Credit mix
Length or duration of credit history
Closing of previous credit card account(s)

Benefits of Maintaining a Good Credit Score

Having a good credit score can benefit you in numerous ways. Here are a few benefits of maintaining a high credit score:

Competitive interest rates and better loan terms
Increased chances of qualifying for a credit or loan
Higher credit limits

Automated EMI repayments, timely payments on credit card bills, disciplined expenditure, and appropriate financial management help to maintain a positive CIBIL score above 800. It may not be an easy task to monitor but with these 6 proven methods listed above to increase CIBIL score, one can surely achieve a score of 800+. Applicants can check their CIBIL score on CIBIL's official website by paying a nominal fee.

Frequently Asked Questions

You can increase your CIBIL score by:

Analysing your credit report and clear default or delayed payments.
Increasing your credit limit
Opting for a healthy credit mix
Managing your EMIs effectively so that they are feasible
Keeping track of previous loans that are successfully repaid
Using credit cards diligently
Making timely repayments
Avoiding hard enquiries

CIBIL Score takes time to improve. You can practice healthy credit habits to increase your credit score. By making timely repayments, avoiding hard inquiries, clearing repayment defaults or delayed payment records from credit report you can increase your credit score.

No, you cannot improve the CIBIL score in 30 days. However, there are some best practices such as opting for a healthy credit mix, keeping track of your old debts, and repaying EMIs consistently can help you improve your CIBIL score.

It is recommended to check your credit score at least once a year to stay informed about your financial health. However, if you are working on improving your credit score, reviewing it every six months is advisable. Regular monitoring helps identify inaccuracies or errors in your credit report, allowing you to address them promptly.

Your credit score is calculated based on several factors including credit utilisation ratio, credit mix, duration of credit, and hard enquiries.

Yes, errors in your credit report can negatively impact your credit score. Mistakes such as incorrect personal information may reduce your creditworthiness.

Improving credit scores from 360 to 800 in a year requires consistent effort and disciplined financial management. Here is how you can achieve this:

Monitor your credit report: regularly check your credit report for errors and rectify them promptly
Make timely payments: Pay all credit card bills and loan EMIs on or before the due date
Reducing outstanding debt: Pay off smaller loans first and avoid accumulating new debt
Maintain a healthy credit mix: Have a balanced mix of secured loans and unsecured loans
Avoid hard enquiries: Minimise applications for new credit or loans to avoid multiple hard enquiries

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