How to Increase Your CIBIL Score above 800?

​​​A CIBIL score is a three-digit number representing the creditworthiness of an individual. It ranges from 300 to 900, the closer your score is to 900, the better it is. Financial institutions consider 750 as a decent number and they will conduct through CIBIL checks before sanctioning a Home Loan. Hence, it is recommended to make all the efforts to increase the CIBIL score to enhance your loan eligibility in the future.​​  

6 Easy Tips to Increase Your Credit Score Above 800

A low CIBIL score can lead to rejections when you apply for a credit card or loan. Also, multiple rejections can further decrease your CIBIL score. Improving your CIBIL score might seem challenging but it is an achievable task. Increasing your CIBIL score can increase your chances of securing credit facilities in the future.​​ Therefore, if you are wondering how to improve your CIBIL score above 800, here is the course of action you can take: 

1. Monitor Your Credit Report 

Regularly monitoring your credit report is essential for maintaining a healthy credit profile. Reviewing your report helps you identify inaccuracies, unauthorised activity, or errors that could negatively impact your credit score. By addressing issues promptly and ensuring accurate information, you can maintain your financial portfolio and take proactive steps to improve your creditworthiness. 

Additional Read: How to Check CIBIL Score for Free with PAN Card   

2. Opt for a Healthy Mix of Credit 

A healthy credit mix of unsecured and secured loans assures the lender of your ability to repay various types of loans easily. Having a combination of a mortgage loan, personal loan, auto loan, and so on, is generally considered a good mix of credit that is sure to keep the CIBIL score in good standing.  

3. Keep Track of Your Old Debts 

Keep a record of all the successful payments made in the past in your credit report. This will give the lender a positive impression of you as someone who settles dues and they will see you as a reliable, low-risk customer.  

4. Use Credit Cards Wisely 

If you wish to improve your CIBIL score, you should start using your credit card diligently. You can begin by making low-ticket online purchases using your credit card and repay the amount at the earliest. This will reflect well on your credit history and add to your credit score.    

5. Make Timely Payments   

One of the key factors that decide your credit health is your debt responsibility. Ensure that you are able to keep up with all your EMI commitments and repay any amount owed on time.   

6. Avoid Unnecessary Hard Loan Enquiries   

Another thing to bear in mind is that every time a lender conducts a hard loan enquiry, your credit score may be affected. Ensure that you only make loan enquiries when you are sure of your loan eligibility and have conducted your research, so you minimise multiple enquiries at the same time.  

Additional Read: Smart Things to Consider Before You Apply for a Home Loan 

How Long Does It Take to Improve a Credit Score? 

Improving your credit score is a gradual process and does not happen overnight. You may see positive changes to your CIBIL score within a few months if you are actively paying bills and EMIs on time, reducing outstanding balances, and avoiding new credit applications.  

However, significant improvement toward a strong score (for example, 750 or above) usually takes around six to 12 months of consistent, responsible credit behaviour. 

What is Considered a Good CIBIL Score? 

The CIBIL score ranges from 300-900 but the higher the number, the better the chances of getting the loan approved. Most lending institutions consider 750 or higher as the ideal score for quick and smooth loan approvals. If your CIBIL score falls below the desired limit, you still have a chance to raise it to 800. The following table shows the credit score and corresponding rating:   

As a prospective borrower, it is always a good idea to know your CIBIL score and find out how it translates to the lender. For those with a credit score below 625, applying for a loan could be challenging owing to the low score. Nevertheless, one should monitor the report and address the factors that could possibly be affecting the CIBIL score.

What are the Factors Affecting CIBIL Score?

Before moving on to how to improve your CIBIL score, here is a look at the factors that affect the credit score in the first place: 

• Credit utilisation ratio 
• Outstanding debts, credit card bills, loans 
• Number of credit applications 
• Accuracy of the credit report 
• Credit mix 
• Length or duration of credit history 
• Closing of previous credit card account(s) 

Benefits of Maintaining a Good Credit Score 

Having a good credit score score can benefit you in numerous ways. Here are a few benefits of maintaining a high credit score:

• ​Competitive interest rates and better loan terms 
• Increased chances of qualifying for a credit or loan 
• Higher credit limits 

Automated EMI repayments, timely payments on credit card bills, disciplined expenditure, and appropriate financial management help to maintain a positive CIBIL score above 800. It may not be an easy task to monitor but with these 6 proven methods listed above to increase ​​CIBIL score, one can surely achieve a score of 800+. Applicants can check their CIBIL score for free on our website.