A good CIBIL score plays a crucial role in your financial life. Whether you are applying for a personal loan, home loan, credit card, or business loan, lenders often check your credit score before approving your application.
If your CIBIL score is around 650, you may face higher interest rates or even loan rejection. The good news is that improving your score to 750 or above is possible with the right financial habits.
In this guide, we’ll explain practical steps to help you increase your CIBIL score from 650 to 750.
What Is a CIBIL Score?
A CIBIL score is a three-digit number ranging from 300 to 900 that represents your creditworthiness.
Generally:
- 300–549: Poor
- 550–649: Fair
- 650–749: Good
- 750–900: Excellent
Most banks prefer borrowers with a score above 750.
Why Is Your CIBIL Score Important?
A higher CIBIL score can help you:
- Get loans approved faster
- Receive lower interest rates
- Qualify for higher credit limits
- Improve chances of credit card approval
- Build a stronger financial profile
1. Pay All EMIs and Credit Card Bills on Time
Payment history is one of the biggest factors affecting your CIBIL score.
Missing even one EMI or credit card payment can negatively impact your credit report.
Tips:
- Set automatic payments
- Use payment reminders
- Pay before the due date
Consistent on-time payments can significantly improve your score over time.
2. Keep Credit Utilization Below 30%
Credit utilization refers to the percentage of your available credit that you use.
For example:
If your credit card limit is ₹1,00,000 and you spend ₹80,000, your utilization is 80%.
Experts recommend keeping utilization below 30%.
Lower utilization indicates responsible credit management and helps improve your score.
3. Avoid Applying for Multiple Loans
Every time you apply for a loan or credit card, the lender performs a hard inquiry on your credit report.
Too many applications within a short period can lower your score and make lenders think you are credit-hungry.
Apply only when necessary.
4. Check Your Credit Report for Errors
Sometimes incorrect information can reduce your CIBIL score.
Common errors include:
- Incorrect loan status
- Duplicate accounts
- Wrong payment history
- Closed loans showing as active
Review your credit report regularly and report any inaccuracies immediately.
5. Maintain a Healthy Credit Mix
Lenders prefer borrowers who can responsibly manage different types of credit.
A balanced mix may include:
- Home loans
- Personal loans
- Credit cards
- Auto loans
Having only unsecured loans may not be ideal for your credit profile.
6. Don’t Close Old Credit Cards
Older credit accounts contribute to your credit history.
Closing your oldest credit card can reduce the average age of your credit profile.
If the card has no annual fee, consider keeping it active with occasional usage.
7. Clear Outstanding Dues
If you have overdue payments or loan defaults, prioritize clearing them.
Outstanding debts can have a major impact on your credit score.
After repayment, ensure the lender updates the status to “closed” or “settled” in your credit report.
8. Become an Authorized User
If a family member has an excellent credit history, becoming an authorized user on their credit card may positively influence your credit profile.
This strategy should only be considered when the primary cardholder maintains good payment habits.
How Long Does It Take to Increase a CIBIL Score?
The timeline depends on your financial history.
Generally:
- Minor improvements: 1–3 months
- Significant improvement: 3–6 months
- Major recovery from poor credit: 6–12 months
Consistency is the key to long-term credit improvement.
Common Mistakes to Avoid
- Missing EMI payments
- Using 80–100% credit limit
- Applying for multiple credit cards
- Ignoring credit report errors
- Closing old credit accounts unnecessarily
Avoiding these mistakes can help maintain a healthy score.
Conclusion
Increasing your CIBIL score from 650 to 750 is achievable with disciplined financial behavior. Focus on timely payments, low credit utilization, responsible borrowing, and regular credit monitoring.
A strong credit score not only improves your loan approval chances but also helps you secure better financial opportunities in the future.
Start implementing these habits today, and your credit profile can improve steadily over the coming months.
Frequently Asked Questions
Is 650 a good CIBIL score?
A score of 650 is considered fair to good, but many lenders prefer a score above 750.
Can I get a personal loan with a 650 CIBIL score?
Yes, but you may receive a higher interest rate compared to borrowers with higher scores.
How much CIBIL score is required for a home loan?
Most lenders prefer a score of 700 or above, while 750+ is considered excellent.
Does checking my own CIBIL score reduce it?
No. Checking your own credit score is considered a soft inquiry and does not affect your score.
