How to increase CIBIL score from 600 to 750

While applying for a personal loan or credit card the banks or NBFCs always check your credit score and income and after the verification your loan is approved. In between that, you can get a loan rejection if your credit score is below 750. In that case, you need to think about how to increase CIBIL score, and what are the benefits of a higher credit score. However, the significance of credit scores is clear as there are various benefits like a concession on the interest, affordable tenure, lower premiums in insurance and many more. So, there are enormous tricks to enhance the score which can be understood in brief.

How to increase CIBIL score

The CIBIL score has been divided according to the ranges where below 600 is treated as poor, and 600-699 is treated as average or fair. The CIBIL score from 700 to 749 comes under the good category and finally, above 750 is treated as very good and excellent. Therefore, there are various techniques to enhance the CIBIL score where you will get to know how to improve your CIBIL score quickly and these are as follows.

Get a short-term loan

The short-term loans are provided for the lower amount and with the lower tenure, which is paid on a per-day basis. You can borrow a short-term loan and repay it shortly. It will enhance your CIBIL score shortly. It is beneficial because you can repeat the borrowing for multiple in a short period.  

Repay the loan on time

Your repayment and punctuality in repayment is the best components to enhance your credit score because whenever you borrow, you have to repay the loan amount on the repayment date. So, if you never miss the repayment, it will enhance your credit score.

Use “Buy Now Pay Later” in online shopping

In shopping, there are EMI options and Buy Now Pay Later schemes on online and offline shopping, which are also considered loans. Therefore, you can choose the pay later scheme for the enhancement of the CIBIL score. It will help you improve your CIBIL score quickly.

Always use the lower credit limit

If you already have a credit card, then use the card for shopping, ticket booking, and many more purposes and use the lower limit, which you can pay easily and instantly. If you are using the credit in such a manner, your CIBIL score will increase shortly.

Benefits of a high credit score – click here

With the techniques of increasing the CIBIL score, it is also essential to know the benefits of a high credit score, and these are the following.

Instant approval of personal loan

When your CIBIL score is high, you will get fast approval on the personal loan, because the lenders always prefer the higher score so that they can be assured about the repayment. And your high CIBIL score reveals your high creditworthiness. 

Affordable interest and tenure

You can get the loan with affordable interest and tenure, especially when your CIBIL score is high. With a higher CIBIL score, you will have the freedom to choose the lenders. You can also negotiate for a lower interest while getting a personal loan.

Lower premium in insurance

A higher CIBIL score is also beneficial while getting insurance because your higher score will help you get insurance with a lower premium amount compared to the general.

Conclusion

Whenever there are financial requirements, especially personal loans for multiple needs, you will come to know that a higher CIBIL score is beneficial and necessarily required. Therefore, you can increase the score shortly with some techniques that have been mentioned like borrowing short-term loans, repaying the loan on time, using a pay later scheme and many more. Therefore, with these ideas, you can easily be keen about how to increase your CIBIL score quickly. Just follow the steps to make yourself eligible to grasp the benefits of a higher CIBIL score.