A CIBIL score of 500 can hold you back from securing loans, getting favorable interest rates, or accessing financial opportunities. This score signals to lenders that you're a high-risk borrower. Fortunately, with consistent effort and smart financial habits, you can boost your CIBIL score to 750. So, if you want to increase your CIBIL score fast from 500 to 750, then you have landed at the right place.
In this guide, we’ll explore why your score might be low, what it indicates, and how to increase CIBIL score from 500 to 750 with practical steps & tips. Achieving a healthy credit score opens doors to better loan approvals, lower rates, and greater financial freedom.
A credit score of 500 indicates a high-risk borrower, making loan approvals challenging and interest rates higher. By clearing outstanding debts, making timely payments, and keeping credit utilization below 30%, you can steadily improve your score to 750 and get better financial opportunities.
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A CIBIL score is a three-digit number ranging from 300 to 900 that represents your creditworthiness. It is generated by the Credit Information Bureau (India) Limited (CIBIL) based on your credit history, repayment behavior, and credit utilization.
CIBIL Score Range | Rating | Meaning |
---|---|---|
300 - 550 | Poor | High risk of loan rejections |
550 - 650 | Average | Limited credit options and higher interest rates |
650 - 750 | Good | Better chances of loan approvals |
750 - 900 | Excellent | Easy approvals with low interest rates |
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A CIBIL score of 500 is considered poor and signals a high risk to lenders. Here’s what this score typically indicates:
Priya’s CIBIL score of 500 was holding her back from achieving her financial goals, making loan approvals and credit opportunities seem impossible. However, she realized that with the right strategies and consistent effort, she could raise her score to 750. Determined to turn her finances around, Priya followed a step-by-step plan to rebuild her creditworthiness and unlock better financial prospects.
Here’s how she did it.
Priya’s journey began with a deep dive into her credit report. She visited the CIBIL website, obtained her report, and spotted errors and outdated information. By disputing these inaccuracies, she set the stage for a quick improvement.
Realizing that unpaid EMIs and credit card bills were dragging her score down, Priya prioritized settling these dues. She knew that clearing these debts would rebuild trust with lenders and give her score a significant boost.
Priya noticed she was using over 70% of her credit limit. She worked on paying down her balances to keep her credit usage below 30%. This reduction in credit utilization signaled responsible financial behavior to lenders.
To prevent further damage, Priya stopped applying for new credit cards and loans for 6 months. She understood that every new application created a hard inquiry, which could lower her score further.
Priya addressed old defaults by negotiating one-time settlements with her lenders. After settling, she ensured the lenders updated her records with CIBIL and collected “No Dues Certificates” to confirm closure.
Priya’s brother, who had an excellent credit score, added her as an authorized user on his credit card. This allowed Priya to benefit from his good credit behavior, giving her score a steady push upward.
To strengthen her profile, Priya obtained a secured credit card backed by a fixed deposit. By making small purchases and paying off the balance on time, she demonstrated responsible credit use.
Priya resisted the urge to close her old credit cards. She knew that a longer credit history would improve her score, so she kept these accounts active and in good standing.
Instead of making minimum payments, Priya chose to pay off her entire credit card balance every month. This reduced her debt faster and helped her avoid hefty interest charges.
Throughout her journey, Priya made it a habit to check her CIBIL score every quarter. Tracking her progress kept her motivated and allowed her to make adjustments when necessary.
By following these steps, Priya gradually improves her CIBIL score from 500 to 750 within 12-18 months. Her journey shows that with consistent effort, discipline, and strategic actions, achieving a healthy credit score is possible.
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Your CIBIL score is a reflection of your financial health. Moving your score from 500 to 750 can significantly improve your financial stability and unlock new opportunities. Here’s why it’s essential:
Achieving a 750 CIBIL score is a great milestone, but maintaining it requires consistent financial habits. Here are some tips to increase CIBIL score and sustain a high score through key practices:
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Visit the CIBIL website or authorized financial platforms to get your free credit report once a year. Provide your details to access your score instantly.
The key factors are payment history, credit utilization ratio, credit mix, length of credit history, and the number of hard inquiries from loan applications.
Yes, paying your credit card bills on time helps build a consistent positive payment history, which significantly improves your CIBIL score.
Closing old loans reduces the length of your credit history, which can slightly lower your score. Keep accounts with good payment histories active to maintain a strong credit profile.
Yes, multiple loan applications create hard inquiries, which can lower your score. Avoid applying for too much credit in a short period.
Pay off overdue debts, make timely payments, lower credit utilization below 30%, dispute inaccuracies in your credit report, and use a secured credit card responsibly.
With consistent effort, it typically takes a few months to a few years to see significant improvements, depending on factors like debt repayment and payment consistency.
Limit new loan and credit card applications, and apply only when necessary. Use soft inquiries (pre-approvals) to check eligibility without impacting your score.
Pay off outstanding debts, overdue EMIs, and credit card bills. Settling dues in full or making partial payments on high balances can quickly boost your score.
After settling a loan, ensure the lender updates your status with CIBIL. Rebuild your score by making timely payments on existing credit, reducing credit utilization, and using a secured credit card.
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