8 Easy Steps to increase your CIBIL score from 500 to 750
As a thumb rule, it is favourable if a good credit utilization ratio is maintained. For this one needs to use less than 30% of the total available limit
Older accounts show your long-term association and connection with the lending institutions, which is considered good by the credit bureaus. This further helps to improve CIBIL score.
An improved payment history plays the most vital role in Increasing CIBIL score.
Individuals need to regularly (not constantly) check their credit reports, as it helps one understand their creditworthiness and take steps to improve CIBIL score if needed.
We should avoid applying for multiple loans, cards and other debt instruments at once as it tends to depict a picture of one who is heavily dependent on credit. This behaviour is immediately tracked by credit bureaus which further leads to a fall in the credit score.
It is always a very good idea to ensure that one never misses a single EMI or credit card payment. This should be done on or before the due date. Missing a single payment or any delay in the same could lead to penalty charges as well as a reduction in the overall credit score.
Making regular ontime payments could help you improve your credit score over a period of 1-2 years (depending on the tenure of the loan).
Paying only the minimum amount due or a partial amount will cause interest to accumulate and increase your debt, thereby reducing your credit score.