Want To Improve CIBIL Report? 6 Tips To Achieve Credit Score Above 750
A credit score of at least 750 and above could help in securing personal loans at lower interest rates.
Your credit score plays a major role in determining your financial health. Whether you’re applying for a loan, credit card or even renting a house, lenders often look at this three-digit number to assess your creditworthiness.
A credit score above 750 is often preferred by most lenders and can help you get better interest rates, higher credit limits and faster loan approvals. But, how can you achieve and maintain a score above 750?
Maintaining a high credit score may not be easy if you fail to manage your money wisely, but you can do so with a few simple steps.
Easy Ways To Maintain A Credit Score Above 750
1) Pay Your Dues On Time, Every Time
One of the biggest factors affecting your credit score is your payment history. Missing even a single EMI or credit card bill can hurt your score. Set reminders or automate payments to make sure that you never miss a due date. Even if you’re short on funds, try to pay at least the minimum amount to avoid a default.
2) Keep Your Credit Utilisation Low
Credit utilisation refers to the percentage of your available credit that you’re actually using. For example, if you have a credit limit of Rs 1 lakh and you’re using Rs 70,000, your utilisation is 70%, which is too high. Experts recommend keeping your utilisation below 30%. This shows lenders that you’re not overly dependent on credit and can manage your finances responsibly.
3) Avoid Too Many Loan Applications
Every time you apply for a loan or credit card, a lender performs a hard inquiry on your credit report. Multiple hard inquiries in a short period can lower your score, as it might indicate that you’re desperate for credit. Space out your applications and apply only when necessary.
4) Maintain A Healthy Credit Mix
Lenders like to see a mix of secured loans (like home or auto loans) and unsecured loans (like personal loans or credit cards). A balanced credit profile shows that you can handle different types of debt responsibly. If your entire credit history consists of only one type, consider diversifying over time.
5) Build A Long Credit History
The length of your credit history also matters. The longer your accounts have been active and in good standing, the better it is for your score. Avoid closing old credit cards unless they come with high fees. Instead, keep them open and use them occasionally to keep the accounts active.
6) Regularly Check Your Credit Report
Mistakes can happen. Incorrect information on your credit report can drag your score down without you realising it. Check your report at regular intervals. If you spot any errors, raise a dispute with the credit bureau or the concerned lender.
A credit score above 750 cannot be achieved overnight. It requires consistent financial discipline. But the rewards are worth the effort. Start with the basics, such as paying your bills on time, borrowing wisely and keeping a close eye on your credit behaviour. A few simple steps and a disciplined financial approach can help you secure a high credit score without hassle.
