Increase CIBIL Score from 300 to 750


A CIBIL score of 300 falls under the ‘Very Poor’ category, and to get loans & credit offers it is very important to have a good credit score. In this context if you are looking for ways to increase your credit score quickly then you are now at the right place.

A CIBIL score of 300 is the lowest possible and indicates severe financial mismanagement. So, to increase your CIBIL Score from 300 to 750, it is time to be disciplined with good financial habits.

On this page, we will go through the tips & strategies on how to increase your CIBIL score from 300 to 750. Read on to know more!

Understanding CIBIL Score - Good & Bad Scores

CIBIL score is the rating given to your credit score by TransUnion CIBIL, one of the four credit investigation companies (CIC), one of the well-known credit bureaus in India, licensed by RBI.

It is the comprehensive result of how responsible one has been with the credited amount.

There is a general range for scores to be understood as good or poor. Understanding where your CIBIL score is can help you plan and move accordingly to improve your score.

Below 300 300-549 550-649 650-749 750 and above
CIBIL Score Range Significance
750 and above
“Excellent”
A score of 750 and above is considered excellent and indicates strong creditworthiness. This is a favourable range of scores for lenders and borrowers to get approval for almost all credit requests.
People reach this score by maintaining an excellent payment history and avoiding negative remarks. They are eligible for the best reward cards and best perks offered by them.
650 - 749
“Good”
Most people with a consistent payment history fall into this range, which is often considered “good.” This is a safe zone, as most lenders allot credits to borrowers within the good score range. However, premium offers and perks are still unavailable, marking them simply borrowers.
550 - 649
“Fair”
Although this range is generally considered “fair,” it is not ideal for any beneficial credit practices.
People stay in this region mainly due to past credit problems. Although acceptable, lenders prefer people in this category very little, and borrowers often find themselves subjected to high interest rates and strict policies on approved loans.
300 - 549
“Very Poor”
People often fall into this category because of poor credit maintenance. Missed or late payments and unpaid loans may cause this. This is a significantly dangerous area, as the borrower is at risk of defaulting or being marked as delinquent.
Lenders view you as a high-risk borrower, and they are most likely to reject the loan or credit card request.
Below 300
“NA/NH”
People who have no credit history are often categorised in this range, as there are not enough details about their credit history to conclude.
They are often marked as NA (Not Applicable) or NH (No History).

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Tips to Increase CIBIL Score from 300 to 750

Whether you are a newcomer to the world of credit or an existing one with a bad score, a fundamental thing to understand is that increasing your credit score from 300 to 750 doesn’t happen overnight; it is the same as attempting to clear college as soon as you learn the alphabet.

Reaching a score of 750 is possible and quite easy. But just like exercising for health, it takes time and consistency.

Here is how you can improve your CIBIL score quickly:

1. Check for accuracy

There is a detailed study of the rise and fall of your credit score against the timeline in your credit report. Ensure the details are correct by cross-verifying your activities on the same dates so that you can avoid unwanted errors.

Understanding the mistake is the first step in correcting it. They could be missed payments or incorrect balances. Although rare, there are cases of miscalculation.

2. Consistency is the key

If you are an individual who has taken a new credit, make sure you don't miss out on any payments and make the payments in full before the deadline.

Although paying the minimum amount is not ideal, it is best to ensure you don’t miss out on any payments.

TIP: Any error you find can be registered as a dispute with CIBIL. Such errors can be removed or corrected.

3. Decrease your credit utilisation ratio

The credit utilisation ratio is one of the major factors CIBIL considers when generating a credit report. It accounts for up to 30% of your CIBIL score calculation.

It is the ratio of the amount you have spent to your total credit, done as:

(Your total outstanding credit / Total available credit) * 100

To maintain a good CIBIL score, it is best to keep the credit utilisation ratio under 30%.

In simpler terms, if you have a credit card with a 100,000 credit limit, restrict your expenditure to below 30,000 to get the best CIBIL score.

If you have multiple credit cards, say, 2—with credit limits of 100,000 and 200,000—your total utilisation ratio should be under 90,000 rupees.

100,000 + 200,000 = 300,000
300,000 * 30% = 90,000

TIP: Request a higher credit limit so that you can have a lower credit utilisation ratio. Just make sure your expense doesn’t grow with a credit limit.

4. Clear outstanding bills/payments

Pending payments are never good news. If you have a defaulted loan or credit card or outstanding payments, it is best to clear them before anything else, as they affect your credit report drastically.

Defaulting: It means that one failed to make payments on time or owes more than they can pay, for a long period. This is very bad, as often it ends up in bankruptcy or legal action.

TIP: Settle the existing debts or outstanding payments, but make sure to ask your lender to mark it as paid in full or paid as agreed on the credit report.

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5. Avoid applying for new credit during this period

Every time you apply for new credit, a hard inquiry is made, which will drop your CIBIL score. This is not a good step, especially if you are someone with a low CIBIL score trying to improve your score from the grey area.

If you are in dire need of another credit card, it is best to choose a secured credit card, as it involves much less risk and doesn’t reduce the CIBIL score.

TIP: If you have someone close with a good credit history, ask them to add you as an authorised user of their credit card. This helps your score, as their positive credit history is also reflected in your report.

6. Diversify your credit history

Though it doesn’t sound like a good idea, this is a smart strategy adopted by many to improve their CIBIL score.

By taking different types of small-scale loans (not simultaneously), you will be able to showcase your ability to manage different types of credits. This may include small personal loans, credit cards, or microloans that you can pay off easily. This will improve your payment history and diversify your account.

TIP: If you have a low CIBIL score, using a credit builder loan can significantly improve it, as the borrowed money is held in bank accounts while you can make payments.
This doesn’t mean opening too many credits in a short period of time. Take breaks and gaps to ensure there are not too many hard inquiries in a short amount of time.

7. Use a secured credit card

A secured credit card functions the same as your typical debit card. The credit limit will be the amount you deposit while opening the account. This is a great risk-free way to build your CIBIL score.

Keep in mind that even though your limit is the amount you deposited while opening the account, keep your expenses under 30% to have the best credit utilization ratio.

TIP: After 6-9 months of responsible usage, you can request an unsecured credit card from the lender. You have a high probability of approval if you have been using the previous card responsibly.

8. Keep old accounts open

The length of your credit history accounts for a good part of your credit report generation. By not closing your old credit accounts, you can showcase a better credit history. Lenders view one with history as one with more experience in credit utilisation.

Don’t close the inactive ones; use them for small purchases to keep them active. They can contribute significantly to your credit score.

TIP: If you have a high credit utilisation in any of your active credit cards, you can use your inactive/old credit card to spread the expense across the whole of your available credit and reduce the credit utilisation ratio of the active card.However, keep in mind that this doesn’t change your overall credit utilisation, just the one of your active credit cards.

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Importance of Improving CIBIL Score

CIBIL score is a direct representation of your financial health. Therefore, it serves as the portfolio of your financial capability, not only for credits but sometimes even for jobs and eligibility.

Having a high CIBIL score can make many things easier for you, some of them being:

  1. Better loan approval
  2. Lower interest rates on loans and credits
  3. Higher credit limits
  4. Easier rental approvals
  5. Negotiating power with lenders (better fees/flexible repayments)
  6. Better insurance premiums
  7. Faster loan

Some of the features may be dependent on factors such as your annual income or related details; however, a good CIBIL score can present you as a financially healthy and credible person.

Improve CIBIL Score From 0 to 750 in 30 Days

One must understand that it is not practical to improve their score to 750 from 300 within 30 days, and most importantly, doing so will not contribute significantly to your credit score, as immediate payments or settlements aren’t considered stable.

A person with a credit score below 300 usually has no credit history. Although not many options are available for starters, if you plan and proceed strategically, you can find yourself in a good range.

There are some methods you can use best to achieve a good credit score.

  1. Use a secured credit card.
  2. Use a student credit card, if you are one.
  3. Use retail credit cards.
  4. Become an authorised user for a higher credit score holder.
  5. Get small-scale personal loans.
  6. Consider a credit builder loan.

Once you have a credit, make sure you

  1. Repay on time.
  2. Keep utilisation below 30%.
  3. Pay more than the minimum each month.
  4. Don’t close your account.
  5. Avoid applying for too many applications.

And most importantly, be patient. It is better to build your credit score over months and years than trying to rush within a few.

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Frequently Asked Questions

No. 300 can be considered one of the worst scores; people often fall at this score due to poor maintenance. It is very hard to get approved for anything with this score.

Factors impacting CIBIL score include payment history, credit utilisation, credit history duration, credit types, and credit enquiries.

Yes. Paying off your credit card bills is a major factor in improving your CIBIL score. However, it must be taken into account that instead of simply paying off the payments, the more strategic methods explained above can significantly boost your CIBIL score.

Yes. Credit history is one of the major factors in the calculation of credit score. Holding an old credit card open, even if inactive, can have a positive impact on your credit score. However, it is advised to use it for small purchases.

To improve your CIBIL score, make timely payments, avoid defaults, balance debt-to-income, and pay more than the minimum amount.

Improvement in your CIBIL score can be visible within a span of 30 days. However, for it to be the best, that is, 750 or more, it might take a few months to a few years, depending on the person and where they are on the credit score scale.

Yes. Applying for multiple loans can raise too many hard enquiries in a short time. This can lower your CIBIL score, as it is recognised as a sign of financial stress.

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