Is your loan application rejected due to the lack of a good credit score presence? Well, there is no need to panic but you should take quick steps to learn how to increase your cibil score immediately. This article will show you the quickest way to elevate your credit score immediately.
As a loan applicant, you should know that having a bad credit score is not the end of your healthy financial life. However, there is always a scope to understand how to improve the cibil score immediately or build it from scratch. While planning to Apply for a personal loan, you should know that the lenders will rely heavily on your credit score for quick approval. You might think, “It’s easier said than done”. And that’s exactly where this article is leading you. This article will entail some proven tips on “how it can be done”, i.e. how to increase cibil score from 600 to above 750.
When it comes to keeping track of your credit score , you should make sure that you monitored your credit report from a trusted source. There are both paid and free online resources available to get your credit report. However, it is always suggested to choose the trusted free online source rather than paying for the same. One such trusted source is Buddy Score. Buddy Score provides you a quick free credit report in a detailed manner which enables you to keep a better track of your finances or credit history.
Before knowing the factors that can help you improve your cibil score, you should see the difference between credit score and cibil score. However, have you monitored your credit score recently ? If not , then click here and get your free credit report now!
What is CIBIL score and Credit score?
A credit score is a vital score used by lenders to evaluate a potential borrower’s creditworthiness. And on the other hand, CIBIL is uniformly known as the Credit Information Bureau (India) Limited. It is a credit rating agency that handles the reports of all the credit activities of companies and individuals, including credit cards and loans.
On the other hand, a credit score is an essential indicator of financial health. It can tell the lender your repayment capacity, your creditworthiness, and how likely you will be able to repay the loan. This score indicates your past credit transactions and ratings that are expressed in three-digit numbers. Now check your credit score for free and get an entire evaluated credit report now, click here to proceed.
However, It is also said that the better your score is, the easier it will be for you to get approved for a loan or credit line.
So if you want to improve your credit score to avoid loan rejections or any other objection, learn about the proven tips and tactics mentioned in the next section of this article on how to increase credit score. But before going further, you must have a clear picture about the basic credit score range and what are the chances of approval related to every credit score. However, as a numeric proof typically a credit score ranges from 300 to 900 to rate your creditworthiness. The higher the score, the better a borrower looks to potential lenders. So, know more about various credit score ranges mentioned in the table below;
Also Read: Tips and Tricks To Build Credit Scores From Bad To Good
CIBIL Score |
Creditworthiness |
Approval Probability |
| <600 | Alert! Requires attention! | Poor |
| 600-649 | Questionable | Very Low |
| 650-699 | Fair | Possible |
| 700-749 | Fine | Good |
| 750-900 | Outstanding | Very High |
Among the above mentioned ranges where does your credit score stand? to know that you can check your credit score with Buddy Score and get your free credit score report now!
Know ways, how to increase your CIBIL score immediately?
The first and foremost step to improving CIBIL score is to have a clear picture of your credit score. Hence, for you to have a quick check of your credit score, there are many trusted online accessible sources where you can monitor your current credit report. And one just trusted store is Buddy Score. Get a free scrutinized and well-evaluated credit score report in Buddy Score.
After you have done that, if you find your credit score higher than 750, you won’t have to worry as you can avail benefits like Quick loan approval, Low interest rates, chances of getting higher amounts of loans. However, if your credit score is very low i.e, around 600, then you should follow the steps mentioned below to know how to increase CIBIL score from 600 to 750.
The Utilization of Credit
Another major factor that is taken into account when calculating a credit score. You can tell how dependent you are on credit money by the amount of credit you have and your use. Using up to 30 percent of your credit lines is advisable.
Make sure you check how much you spend on credit if you have more than one credit card. You should also find a credit card issuer that accepts multiple monthly payments. Hence, keeping track of your credit utilization is a quick way to increase CIBIL score.
Also Read: Obtaining A Loan With A Bad Credit Score Is Now Possible! Read This Article To Know More.
Timely Payments:
As your credit score is not upto the mark currently, you will have to be extra careful in paying off all your credit card bills on time so that your credit report does not indicate significant defaults.
Make online payments while keeping in mind how much time your payment might take. Hence paying by cheque and ensuring that you drop the cheque timely a few days before the bill due date. That also provides timely payment and eventually helps you to see quick results in increasing your CIBIL score from 600 to 750.
Too Much Credit:
If you think having multiple credit cards credit will make your life easier. Balance transfers and other card benefits are also supposed to make our financial life flexible. However, too much credit might show you as credit hungry and also lowers your chances of getting additional credit if required.
Multiple credit cards can be challenging for a person to keep track of due payments. That is the reason one should only owe a little credit.
Good Use of Credit Cards:
Your Credit cards are usually excellent and are a competent financial tool you can own. They provide you with the necessary credit and help us avail of many benefits, like reward points and air miles. Your Credit cards also allow us to roam cashless without worrying about refraining from every other ATM.
However, all these benefits only apply if the cards are used optimally. Reaching beyond your credit limit every month can be a wrong move. Sometimes, suddenly closing a credit card is a good idea if you obtain a NOC from your credit card provider.
A Proper Mix:
Having the right combination of secured and unsecured loans also helps. Unsecured loans like personal loans and car loans can generally impact a person’s credit score. Hence, fast loans like home loans are directed towards asset creation that will affect your credit score in a good way. Minimizing the unsecured component of your credit portfolio will influence your credit score positively by initiating an increased CIBIL score.
Check Your Credit Report:
You should monitor your credit score, not only because it shows you a picture of your current credit status but also to find any credit report problems. To know the first thing, you must obtain a copy of your credit report only by applying for it on a credit bureau like the CIBIL score. While monitoring your credit score, if you find fundamental problems like your misspelled name and other significant information that are not up to date, you should rectify that as soon as possible. Otherwise, these problems can affect your credit negatively. Hence, click here to check your credit score now and get the errors rectified at the earliest.
Hence, take time and review each report carefully to be aware that you don’t end up accepting any information that contains errors. Thus doing so is one of the ways to increase your CIBIL score at a quick pace. Sometimes, while checking your credit score, you might witness some errors you might not be aware of. That is because of some discrepancies that have occurred, not due to your financial situation. Hence, being conscious and checking it accordingly will give you a correct result of knowing how to improve your CIBIL score immediately.
Too Many Loans:
While you are taking steps to know how to improve CIBIL score fast, there is a common mistake that you might tend to make by applying to multiple banks. Applying for too many loans will depict you as desperate for credit. So, an inquiry about your CIBIL score will reflect on your CIBIL score. The higher the number of questions, the more your credit score has a higher chance of going down. There are many good ways to increase CIBIL score by keeping your inquiries to a minimum and obtaining a copy of your score personally. Once you have a better idea of where your credit score stands and if it is below expectation, you should prepare to pay higher loan rates—seeking out those banks that will lend you money at the most affordable rates rather than approaching other banks.
These steps should help you constructively to increase your CIBIL score. Now that you know how to improve your CIBIL score immediately you should also know why you should have a good credit score. Hence, what we are going to discuss in the next section is what are the benefits of having a good credit score.
What Are The Benefits Of Having A Good Credit Score?
Having a good credit score provides many advantages and qualifies you for an instant personal loan. The loan company can also determine the loan amount they can offer to the borrowers by witnessing the current credit score. Banks and financial institutions dislike giving personal loans or credit cards to people with low scores because they are skeptical of their repayment capacity.
Most people can save a lot over their lifetimes by having an excellent credit score. Good credit helps you get better mortgage rates and anything else that involves financing. A higher credit rating means you are viewed as a lower-risk borrower.
However, consumers with bad credit are viewed as higher-risk borrowers, meaning fewer lenders compete for them, as they can lend high-interest rates on the loans. A low credit score can also be a roadblock to renting a car, getting life insurance, setting up utilities, and even getting a job. Hence, this is why one should have a good credit score or know how to improve credit score fast.
The following benefits are only available to individuals with a clean and consistent payment history and a high credit score.
Receive A Loan At Low-Interest Rates.
An excellent credit score can be very advantageous for you as it can help you qualify for low-interest loans. Also, it can make it easier to repay the debt without difficulty. You can also pay attention to this because even a half percent increase in the interest rate can impact your finances.
Instant Approval For A Credit Card And Loan.
A high credit score demonstrates to the lenders your creditworthiness, which leads them to give you instant loan approval. To get a quick instant loan, you should know if or how to increase CIBIL score from 600 to 750. Hence, borrowers with excellent credit scores can benefit from the rapid acceptance of loans and credit cards. Having your credit score settled can help you get a fund immediately in an emergency.
Furthermore, lenders, banks, and financial institutions can only accept borrowers with good credit ratings because of their unreliable credit histories. It’s also important to remember that various additional factors will also be considered when you apply for a loan or purchase a credit card.
Negotiations Power With The Lender
An excellent credit score gives you the benefit of negotiating interest rates or a more considerable loan from lenders. Thus, a good credit score can enhance the negotiating power of borrowers. Apart from all this, it can even entitle the borrower to get unique offers with an increased CIBIL score.
You Have A Good Chance Of Getting A High Limit On The Loans.
Lending institutions and banks use an individual’s credit score and income to determine how much they can borrow. Banking and financial institutions are more likely to give you a good loan if your credit score is high. Your high credit score makes you an excellent borrower. However, when the borrower has a low credit score and requests a loan. The lender might accept the loan, but the lender will charge higher interest rates.
You Can Quickly Get A Higher Limit On Your Credit Card.
Lending institutions and banks use an individual’s credit score and income to determine how much they can borrow. These cards offer you the best interest rates, rewards, deals, discounts, and cashback offers. Make sure you pay off your credit cards and loans on time when you are thinking of purchasing something extraordinary with many perks.
The Chance Of Getting A Long Tenure.
Another beneficial advantage of having a good credit score is that it lands you a higher chance of getting a longer tenure on your loan. A longer-term lower monthly EMI can help you properly maintain your finances.
Access To Utility Affordability.
Sometimes, utility companies check credit reports and scores to determine whether you can pay your bills on time. In such a case, you will have to put down a security deposit if your credit score is poor.
It would help if you also remembered that the better your credit score, the higher chances you’ll have to avail of maximum benefits. Hence, if you plan to apply for a loan you need to check your credit score regularly. You can check your free credit score at Buddy score to obtain your current credit position to know what steps you take to increase CIBIL score if it’s currently weak.
Be Aware of These Factors That Hurt Your Credit Score
Your Loan Repayment History
Making timely payments helps you improve the growth of your credit history. Hence be diligent in making timely payments. Your credit score is harmed if you default on your EMI or make late payments. Therefore, you must know that your loan repayment history can significantly impact your credit score, which helps you understand and practically witness how to improve your credit score fast.
Duration Of Your Credit History
The age of your credit history can also impact your credit score. If you use your credit cards for longer by paying your payments on time, then the lender and financial institutions can determine that you have disciplined credit behavior. Hence, the period of your credit history can have a minimum impact on your credit score and increase your CIBIL score.
Hard Inquiries.
When you apply for a new loan, the lender monitors your credit rating. And such inquiries are made by lenders, and financial institutions are determined as hard inquiries. In other words, too many hard questions can adversely affect your credit score and give the impression that you are credit-hungry. Hard inquiries can significantly impact your credit score for a shorter time.
Ratio of Credit Utilization
The credit utilization rate is known as your credit utilization ratio. It is revolving credit used divided by total credit available. You can use credit utilization to determine how much credit you have available at the moment. To maintain a good credit utilization ratio, you should not use more than 30% of your available credit.
If you utilize your credit up to 60-70%, it might barely affect your credit score. However, if your credit utilization ratio is high or if you frequently max out your credit limit. The lender may view you as highly reliant on credit and likely have an increased repayment burden. This can negatively impact your credit score.
Increasing Your Credit Card Limit Frequently.
If you keep requesting a raise in your credit card limit, it can create doubts about your creditworthiness. It will show that your debt appetite exceeds your ability to pay back. As a result, it might negatively affect your credit score. Therefore, it’s best to stay within the existing credit limit and repay debts promptly. If the bank believes it’s the right time, they will raise your credit limit.
Conclusion
Achieving a high CIBIL score can be very challenging, also it can help you to follow a disciplined plan. However, if you take each step in the right direction, it can bring relief for any sudden future occurrence. And that first step begins with knowing your credit score
Maintaining a good credit score can be achieved and maintained by developing good long-term credit habits. This habit begins with paying your debts on time, maintaining a low utilization rate, and only taking out credit when you need it.
It would help if you always focused on the factors that affect your credit score and then improved it. Hence following the mentioned above tips should help you witness how to improve CIBIL score immediately over time. Once your credit rating starts improving, you will save money and take advantage of a more significant number of opportunities with an increased CIBIL score. Hence, now that you know how crucial your credit score is, then you check your score now, to make sure that you are ready to take out a loan. To get your free credit score report, login to the Buddy Score website and get your quick credit report now. With further queries visit the Buddy Loan website or mail us info@buddyloan.com
FAQs
What does each range of credit scores signify?
This is what each credit score range signifies, which you should follow:
| 300-500 | Poor |
| 500-650 | Low |
| 650-750 | Average |
| 750-900 | Good |
Among the above mentioned range where does your credit score stand? Inorder to know that check Buddy Score page and get your free credit score report now!
What is the difference between a credit score and a credit report?
The credit score represents a typical evaluation of past credit transactions and ratings. It is expressed in three-digit numbers, while a credit report represents the overall credit score, either digital or physical.
What is the time frame for rebuilding credit?
In general, it takes at least three to six months for you to increase your CIBIL score. You may be able to make the necessary changes any faster if your credit report shows only a minor error, such as being late on a bill payment one month. It is difficult to make the necessary changes any faster.
Why is my credit score not improving?
Many factors determine why your credit score is not improving. To know why your credit score is not improving, you must always check your credit report to reflect all the factors that may affect it.
