A Credit Information Bureau (India) Limited (CIBIL) score is an important factor that determines your creditworthiness. Lenders (Banks & NBFCs) check it before approving the loan. If you have a CIBIL score of 700, then it is considered a good score. It will qualify you for most loans. But you still fall in the âstandard borrowerâ category. Even if you are eligible to apply for a personal loan and business loan from DMI Finance, your credit score must be 700 or above.
If you are wondering how to improve your credit score from 700 to 750, then this blog will provide you with a complete roadmap. You will come to know what strategies you need to apply and what actions are required to improve the score.
A CIBIL score ranges from 300 to 900. A score of 700 to 749 is considered a good score. However, 750 and above is considered excellent. At the core, banks or Non-Banking Financial Companies (NBFCs) consider you a low-risk borrower and have confidence in your repayment capacity.
A score of 750 or above brings the following to you: –
Before you take any action, let us first understand why you have a score in the range of 700-749. At this stage, there are not many major issues. But the problems can be minor, like:
If you have decided to improve your CIBIL score from 700 to 750, then here are the tips that can help you:
Your payment history contributes 35% to your credit score. Hence, you should always pay credit card bills as well as loan Equated Monthly Instalments (EMIs) before their due date. Late payments are recorded on your credit report, and they can bring your score down.
You can set auto-debit for your EMIs and credit card bills so that you donât miss any due dates. You should always make full payment, especially in the case of credit cards. Donât just pay the minimum due because it will affect your score.
Credit utilisation ratio means how much credit you are currently using as compared to the total credit limit that is available to you. Itâs advisable to keep the ratio below 30%. And to improve your score from 700 to 750 at a faster pace, it’s ideal to keep it around 15-20%.
You can also ask the bank to increase your credit limit. If you donât increase spending, then this can reduce your credit utilisation ratio.
Errors in the CIBIL report are quite common, and they can reduce your CIBIL score. Some of the common errors are:
You are allowed to download one free CIBIL report per year. So, you shall download it and go through it properly. Check for errors, and if any are found, then raise the dispute directly through the CIBIL online portal. A single corrected error can improve your CIBIL score by 20- 40 points.
Whenever you apply for a new loan or credit card, the lender checks your credit report. It is considered a âhard inquiry â, which reduces your score by a few points. If there are multiple inquiries in a short span of time, it signals credit hunger and can be viewed negatively by banks or NBFCs.
If you are serious about how to improve your CIBIL score from 700 to 750, then stop applying for any new loans or credit cards for a few months. Also, avoid any balance transfer offers that require a fresh application.
There are mainly two types of loans, i.e. secured loans and unsecured loans. A healthy mix of both can reflect that you can handle different types of credit responsibly. This reflects you in your CIBIL as a good and reliable borrower. This can have a positive effect on your CIBIL score.
Length of credit history matters a lot. A longer credit history has a positive impact on your CIBIL Score. Hence, you should avoid closing old credit accounts as it will reduce your credit history. Especially keep the older credit active, even if you are not regularly using it.
If you are unable to pay the loan and opt for settlement, then it can have a negative impact on your credit score. Hence, never go for a settlement. Always prefer to close the loan as per the repayment schedule. This will have a positive impact on your credit score.
Transition of your CIBIL score from 700 to 750 is not just a drastic change, but itâs a reflection of consistent financial discipline and smart credit behaviour. At this stage (700-749), you are already a responsible borrower, and you are now entering the prime category (750). Hence, you need to avoid any kind of inefficiency. Timely repayment, low credit utilisation, minimal inquiries and a strong credit history are the key pillars that will help you achieve the milestone.
If you are sincere about how to improve your CIBIL score from 700 to 750, then you should remember that there is no shortcut for this. Build your financial goals confidently with a personal loan from DMI Finance, offering a hassle-free process and flexible repayment options. Click here to apply.
1. What is a CIBIL score?
A CIBIL score is a three-digit number that reflects your creditworthiness. It depends on your borrowing and repayment history. Lenders check your CIBIL score before approving the loan.
2. Is 700 considered a good CIBIL score?
Yes, 700 is a good score and makes you eligible for most of the loans. But 750 is considered excellent, and it gives you benefits like lower interest rates and higher credit limits.
3. What benefits do you get after a 750 CIBIL score?
You get loans at lower interest rates, faster approvals, better credit card offers and strong negotiation power with banks or NBFCs that categorise you as a low-risk borrower.
4. How shall I ensure timely payments to boost my CIBIL score?
You shall automate your loan EMIs and credit card bills through the auto debit facility. Make sure that all your credit card bills are paid in full (not minimum due) before the due date to avoid negative marks.
5. What is the difference between a 700 and a 750 CIBIL score?
A score of 700-749 is considered âgoodâ by the majority of lenders. But a score of 750 is considered âexcellentâ. At a 750 or higher score, lenders categorise you as a low-risk borrower and offer low interest, faster loan approvals and better credit card offers.
6. What is the ideal credit utilisation ratio?
It is always recommended to keep the utilisation ratio below 30%. And for faster improvement in credit score, itâs advisable to keep it between 15-20%.
7. Can multiple loan applications affect a credit score?
When you apply for multiple loans at the same time, it creates a hard inquiry on your credit report. This can reduce your score.
8. How does the credit mix impact the CIBIL score?
Itâs always advisable to have a healthy mix of both secured and unsecured debt. This shows that you can manage both types of debt, and it improves your CIBIL score.
9. Can an increase in credit limit improve the score?
Yes, if spending remains the same, then it can reduce the credit utilisation ratio. This will improve the CIBIL score.
10. Can small payment delays affect the score?
Yes, even minor delays can get reported on your credit report, which can reduce your score.
11. Why should I improve my CIBIL score from 700 to 750?
Improving your CIBIL score from 700 to 750 can make your credit profile stronger. A higher score may help you qualify for better personal loan offers, higher loan amounts, smoother approvals, and more favourable interest rates, depending on the lenderâs policy and your repayment capacity.
12. What is the fastest way to increase CIBIL score?
The fastest practical way to improve your CIBIL score is to clear overdue payments, pay all EMIs and credit card bills on time, reduce credit card utilisation, and avoid applying for multiple loans at once. However, score improvement is gradual and cannot be guaranteed instantly.
13. What CIBIL score is needed for a DMI Finance Personal Loan?
For a DMI Finance Personal Loan, a CIBIL score of 700 or above is generally preferred. Final approval depends on other factors as well, including monthly income, existing debt obligations, repayment capacity, document verification, and internal policy checks.
14. Will a 750 CIBIL score guarantee personal loan approval?
No, a 750 CIBIL score does not guarantee personal loan approval. It improves your credit profile, but lenders also check income, employment stability, existing EMIs, age, documents, repayment capacity, and internal policy before approving a loan.
