How to Boost Your CIBIL Score from 360 to 800 in 1 Year?

How Can I Raise My Credit Score From 360 to 800 Within a Year_Banner_WC

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How to Boost Your CIBIL Score from 360 to 800 in 1 Year_WC

5 min 21 Mar 2024

Highlights:

Significance of a CIBIL Score
Understanding Reasons for a Low CIBIL Score
Steps to Improve Your CIBIL Score
Steps to Check the CIBIL Score Using PAN Card or Aadhaar Card

A credit score plays an important role when it comes to availing of loans. One should build a good credit score to secure loans at favourable terms.  

Each financial activity in the credit market is recorded under the CIBIL records. By assessing your CIBIL report, lenders can gauge your creditworthiness. The CIBIL score ranges from 300 to 900. A credit score above 750 indicates responsible credit behaviour. Your credit score is influenced by several factors such as your loan repayment behaviour, duration of the credit accounts, and credit utilisation.

Also Read: Does Applying for Credit Influence One’s Credit Score?

CIBIL Score - What's the Significance of this 3-Digit Number?

Credit Information Bureau (India) Limited or CIBIL records information of the credit users and based on their credit history, it assigns a score to them, known as the CIBIL score. In simple terms, a CIBIL score is a numerical representation of an individual's creditworthiness. Individuals and businesses both have CIBIL records. These records are used by credit-giving agencies such as crediting associations, banks, or NBFCs to evaluate both individuals and businesses before extending a loan.

Reasons for Low CIBIL Score

Several factors contribute to a decrease in the CIBIL score. Late or missed payments on loans or credit cards can decrease the credit score. Multiple hard inquiries from loan or credit card applications within a short period can portray credit-hungry behaviour, negatively affecting the score. Errors in the credit report, such as incorrect personal or account details, can also lead to score reduction if left unaddressed. High credit utilisation ratios and improper credit mix with a lack of varied credit products further contribute to low CIBIL scores.

Steps to Increase CIBIL Score from 360 to 800

A credit score of 750 or above is considered an ideal credit score. If you want to improve your credit score, here are some simple methods for improving your credit score:

Maintain a low credit utilisation ratio.
Regularly review your credit report to identify and rectify any errors.
Ensure that the closed debts are accurately updated in the report.
Refrain from making unnecessary loan applications.
Set up automated EMI payments to prevent missed deadlines and ensure punctual repayments.

Also Read: How to Increase Your CIBIL Score Above 800?

How to Check Your CIBIL Score Using a PAN Card or Aadhaar Card

You can check your CIBIL score by using your PAN card or Aadhaar card, by following the given steps:

Step 1: Open the official website of CIBIL, Equifax, Experian, or CRIF Highmark.

Step 2: Click on 'Get your CIBIL score' or any similar tab.

Step 3: Next, login to your account.

Step 4: On the webpage page, you will be expected to enter your specifics, such as your complete name (as given in your PAN Card), your email address, mobile number, and any one ID number. Note that the ID document numbers which are valid are PAN number, Driver’s License Number, Passport Number, Voter ID number, Aadhaar Card, or Ration Card number. Keep in mind that these ID documents should be in your name. 

Step 5: When you enter this ID number, the credit authority checks the details and pulls up your credit report.

Step 6: The report will be sent to your enrolled email address.

Final Words

Maintaining a good credit score is essential to having a good CIBIL report. A score above 750 reflects responsible credit behaviour. To improve your credit score, maintain a low credit utilisation ratio, rectify errors, avoid unnecessary loan applications, and set up automated repayments to avoid defaults. A good credit score is essential in securing a favourable Home Loan, as it indicates creditworthiness and responsible repayment practices. So, building and maintaining a good credit score can increase your chances of being approved for a Home Loan, making it easier to achieve your dream of homeownership.

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