Borrowers with a CIBIL score of 650 may find themselves paying higher interest rates or receiving less attractive loan offers. Such a score does not rule out the possibility of getting a loan, but it could influence how lenders assess an applicant's creditworthiness. A score above 750 is generally seen as a good indicator of credit health in India and may improve access to better borrowing terms.
The journey from 650 to 750 calls for steady financial planning rather than quick fixes. Here are five steps that can help strengthen your credit history and improve your CIBIL score.
Never Miss Your EMI Or Credit Card Payments
Timely repayment is essential to maintaining a healthy credit profile. Banks and financial institutions report repayment behaviour to credit bureaus, which means even a single delayed EMI or overdue credit card bill could pull down your score.
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Borrowers can avoid such lapses by enabling auto-debit facilities or setting calendar reminders ahead of payment dates. Any existing overdue amounts should also be settled at the earliest.
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Keep Your Credit Card Utilisation Low
The proportion of your credit limit that you use can influence how lenders assess your financial health. Regularly running up large credit card balances may indicate excessive dependence on borrowed money. Financial experts generally recommend keeping credit utilisation below 30%.
For example, someone with a credit limit of Rs 1 lakh should aim to keep outstanding dues within Rs 30,000. Paying the entire bill each month and limiting discretionary purchases can help maintain a healthy credit score.
Avoid Applying For Multiple Loans At Once
Each loan or credit card application can trigger a hard enquiry on your credit report. A series of such checks over a brief period may lower your CIBIL score and give lenders the impression that you are seeking credit too frequently. Rather than submitting multiple applications at once, evaluate your financial needs, compare available offers and approach lenders only when there is a genuine requirement.
Maintain A Healthy Mix Of Credit
The mix of credit you hold can also influence your CIBIL score. Having both secured borrowing, such as a home or car loan, and unsecured credit, such as a credit card or personal loan, can reflect your experience in handling different types of debt.
Maintaining a healthy mix may work in your favour, but taking out loans without a genuine need is best avoided. A consistent repayment record and sensible use of credit carry greater weight.
Check Your CIBIL Report For Errors
Not every drop in your credit score is necessarily linked to your repayment behaviour. Reporting errors, including incorrect loan balances, payment defaults that never occurred or accounts mistakenly linked to your name, can also affect your creditworthiness.
Make it a habit to examine your credit report and flag anything that appears incorrect. You can approach both TransUnion CIBIL and the concerned financial institution to initiate the correction process.
How Long Does It Take To Reach 750?
There is no guaranteed timeframe for moving from a CIBIL score of 650 to 750. Borrowers with a history of delayed payments or substantial outstanding debt may need more time to rebuild their credit profiles.
Regular repayments, lower credit utilisation and careful monitoring of credit records can gradually make a difference. Staying disciplined with these habits is essential to improving your chances of securing a stronger credit score.
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