How to increase CIBIL Score to 800?

One of the most important things that lenders look at when you apply for a loan is your credit score. This is due to the fact that your CIBIL score reveals your financial habits and payback history. So, you must know how to increase CIBIL score above 800. This requires consistent EMI payment and smart credit management. 

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How to Improve CIBIL Score Above 800?

Here are some tips you must follow to improve your credit score.

1. Late or missed payments negatively impact your score. Set reminders or enable auto-debit to ensure timely payments.

2. Ideally, use less than 30% of your credit limit. High usage indicates dependency on credit, which can lower your score.

3. Each loan or credit card inquiry is a “hard inquiry” and too many in a short time can lower your score. Apply only when necessary and avoid multiple applications simultaneously.

4. Older accounts with good repayment records help boost your score. Instead of closing them, use them occasionally to keep them active.

5. Review your CIBIL report at least once a year. Look for errors or fraudulent accounts and report them immediately to CIBIL for correction.

This is all about how can I increase my CIBIL score to 800.

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Does Foreclosure Affect Your CIBIL Score

Your CIBIL score shows your credit history. Lending institutions use it for evaluating your creditworthiness before approving loans. Lenders now classify people based on their credit score and offer risk-based pricing on specific loans. The higher the risk, the higher the rate of interest and vice versa. Before I tell you how to increase CIBIL score to 800, let’s take a look at the credit score range that lenders and bureaus consider while evaluating your credit application:

Now, I’ll tell you how to improve CIBIL score above 800:

Your credit score will improve if you pay your outstanding credit bills on time. If you pay the basic amount due as soon as it appears on the credit card statement regularly, you will be able to escape the late payment fee.

How will CIBIL rate your credit managing ability if you never take the credit? This is why it is considered good to charge a minimum amount such as Rs. 500 on your card. Just pay back the full amount before the due date, so your credit card appears to be active to CIBIL and other Credit Bureaus.

Ensure your expenses are within the thirty percent credit limit. It means the outstanding amount on your card should not be more than this number. In case you want to spend more, just pay into your card account in advance to ensure you aren’t using much of the limit.

An education loan is also considered as good credit. If the education loan does not apply to you, then other loans such as Installment loans and bike/car loans are also considered as “good”.

While personal loans and credit cards are considered as “bad credit”, a housing loan is considered as “good credit”. So, in case you have got an active housing loan in your name or as a joint holder, it is sure to contribute to your CIBIL score positively.

I want you to know that these steps won’t improve your CIBIL score immediately. It will take about six months to one year or more for your credit score to improve. I hope you know how to increase CIBIL score to 800.