While a credit score of 650 might not be an obstacle to loan approval, it usually implies higher interest rates and stricter requirements. Increasing your credit limit to 750 may result in easier approvals, better loan terms, and higher credit limits. The good news? It is entirely possible to raise your score with dedicated work and intelligent approaches. Here are practical credit score improvement tips to help you reach 750 faster.
Understand Your Current Credit Score
Understand why your score is at 650 before making any changes. In India, several factors affect your CIBIL score,
- Payment history (35%) – Late or missed payments have an important impact.
- Credit utilisation (30%) – A high credit card balance lowers your score.
- Credit mix (15%) – A 15% credit is made up of a balance between secured and unsecured loans.
- Credit history length (10%) – A longer, more effectively managed credit history improves a score.
- Recent enquiries (10%) – Applying for more than one loan or credit card can lower your score.
Identifying weak areas of your credit report is made easier by regularly reviewing it. You can continue to keep an eye on your score, track your progress, and identify the things that are preventing you from reaching your full potential with platforms like Olyv.
Pay Bills on Time, Every Time
Building up a consistent repayment history is one of the quickest ways to raise your score.
- Make sure to pay your EMIs, credit card bills, and loan instalments punctually without fail.
- To prevent late payments, you can either activate auto-debit or set up reminders.
- Delayed payment of even a minor amount can cause a major drop in your credit score.
Credit score enhancement tips that are simple yet powerful are digital tools such as Olyv, which offer repayment tracking and reminders to make sure that you never miss a due date.
Reduce Your Credit Utilisation
Lenders take high utilisation as a sign of stress in the financial area. Try to maintain your credit card balances under 30% of your overall limit.
- Make full settlements of existing debts instead of only paying the minimum.
- Do not exceed the credit card limit, even for a short period of time
- If it’s feasible, ask for a credit limit increase to lower your utilisation ratio
Reducing utilisation is said to be one of the fastest methods to pull your score from 650 to 750.
Clear Outstanding Loans Strategically
In case of having more than one loan or pending EMIs, you should work out a plan for repayment in such a way that it has a positive impact on your score:
- Settle overdue amounts first
- Concentrate on small personal loans or high-interest debts
- Try to negotiate settlements if required, but make sure they are reported as cleared
Using small, structured loans through platforms like Olyv can ensure that you are making timely repayments, which, in turn, slowly elevates your creditworthiness.
Keep a Healthy Credit Mix
Your profile is reinforced by a nice combination of secured and unsecured loans.
- Attempt not to have a lot of unsecured loans simultaneously
- Be consistent and timely with existing loan repayment
- If necessary, add secured credit slowly
This combination demonstrates responsible borrowing, a key credit score improvement tip.
Limit Hard Inquiries
Your report reflects a hard inquiry with every new loan or credit card application. If there are several inquiries in a short time, your score could be affected negatively.
- Apply just when it is needed.
- Pre-qualification online tools are there to check eligibility without affecting your score.
- Creditworthy applicants can use Olyv’s digital platform to conduct score-neutral pre-approval checks.
This is good for you, since it enables you to credit applications plan taking into account your future point score.
Correct Errors on Your Credit Report
There are cases when the errors in your report negatively impact your score, mistakes on your CIBIL report.
- Incorrect overdue entries
- Duplicate accounts
- Wrong personal information
Check your credit report periodically and raise disputes for inaccuracies. Once the rectifications are made, it can lead to a sudden and significant increase in your score.
Develop Credit Habits For The Long Run
If you want to score 750 first and then keep it forever, develop the following financial habits,
- Set EMI payments to a maximum of 50% of your monthly income and a minimum of 40%
- Make full monthly payments towards the balance on your credit card whenever possible.
- Do not take out loans or use your credit card for shopping just because you feel like it.
- Do monthly progress tracking
Making it a habit over several months is the only way to get rid of your old credit problem that stays with you forever.
Utilise Digital Tools for Tracking and Enhancing
Modern digital platforms such as Olyv enhance the process of credit score recovery,
- Monitoring of credit scores in real time
- Tailored reminders for repayments
- Minor loans for the right use to establish a good history
- Learning resources to comprehend the score-determining aspects
For part-time workers or middle-income individuals, employing these tools is among the most effective credit score improvement strategies.
Patience and Persistence Are Required
It’s not going to be a quick process to increase your score from 650 to 750. Changes for the better are most likely to appear after a period of 6 to 12 months in which you have displayed consistent behaviour.
Concentrate on,
- Timely payments
- Minimal usage
- Mistake correction
- Prudent borrowing
Little by little, your reputation as a trustworthy borrower will be established in the eyes of lenders, and along with it, your credit score will go up.
Conclusion
It is possible to upgrade your credit score from 650 to 750 by adopting consistent and responsible financial practices. These are the following credit score improvement tips: pay your bills on time, control the amount of credit you use, keep a healthy mix of credit, limit credit inquiries, and monitor your progress. Platforms like Olyv simplify the process by sending reminders, facilitating small loans, and providing tracking in real-time. Besides, with the right amount of patience and persistence, you will be able to have a strong credit score that can grant you access to good loans, low interest rates, and more financial power.
