For potential borrowers who wonder if they can improve credit score fast, there’s some good news! By following a certain set of practices listed in this article, you can up your credit or CIBIL score within 30 days.
Your credit or CIBIL score is a measure of your creditworthiness and solvency. This score or rating acts as a yardstick for future loan approvals, especially if you’re on the precipice of availing a personal loan. So, before applying for personal finance or any other type of loan, be sure to check credit score and also improve it.
Ways to Improve Credit Score In 30 Days
We know it sounds almost unreal that one can boost their credit score in such a short period, but here are five ways through which you certainly can.
1. Never Delay Another Bill Payment
The first and foremost answer to how to improve credit score in 30 days is by paying your credit card, loan EMIs or any other bills on time. Even better would be to clear these bills a couple of days before the due date. Doing this will have a twofold effect.
Firstly, it will prove solvency, which is key in quickly improving the credit score. Secondly, it will make you eligible for higher credit limits, which in turn boosts your credit score. Therefore, be it your utility payments, credit card bills, or monthly instalments, never delay, or worse, default on a bill payment.
2. Get a Credit Card
It’s simple! How to improve credit score fast is irrelevant, if you don’t have any credit history - means you are a fresher. No credit history equals no high/low credit score. This may initially sound like a good thing, but it can be detrimental when the time comes to take any type of loan. Having a credit history is not a bad thing. In fact, it works like a report card of your creditworthiness and lets future lenders trust you with high loan amounts at low-interest rates.
Therefore, get a credit card, regardless of whether you will use it or not. It is anyway a mode to secure interest-free credit for often 45 days, if not more. And, allows you to, first, receive a credit score and, secondly, improve it.
If you are a first-timer who wants to get a credit card, refer to tip number five in this article.
3. Bring Down Credit Utilization Ratio
This expert tip on how to improve credit score in 30 days also works for individuals who have a relatively high score and want to ensure it stays that way, even if they end up delaying one or two bill payments.
One of the hidden secrets to improving credit score in 30 days is to keep your credit utilization below 30%. So, suppose your credit limit is Rs. 1 lakh, and you want to boost it quickly; avoid spending more than Rs. 30,000 on your card – just until your CIBIL score goes up.
By doing this, not only will you up your CIBIL score fast, but you will also end up repaying your bills on time and practice financial discipline.
4. Request to Increase Credit Card Limit
Once you have managed to keep your credit utilization below or up to 30%, play your second move, which is to request a higher credit limit. Getting approved for a higher credit card limit signifies you as a responsible user, which is a great way to improve credit score quickly.
If you have been repaying your bills on time and keeping your utilization under 30%, most lenders will happily bump your credit limit. Some issuers even allow you to increase your credit limit online. However, keep in mind that just because the issuer has increased your credit limit, you must continue using only 30% of the total limit and not get tempted by the raise.
5. Opt for a Cash-Backed Credit Card
Perhaps the easiest reply to how to improve credit score fast is by opting for a cash-backed credit card. You can do this by depositing a one-time amount which is the same as your credit limit or slightly lower.
This provides a bulletproof guarantee of repayment, which is an excellent way to improve credit score fast. Opting for a secured credit card is also a great way to get a credit card for first-time users with no credit history and, therefore, may not get one quickly.
6. Don’t Buy Multiple Credit Cards/Loans
A key strategy how to improve credit score fast is not to have multiple credit cards or loans simultaneously. Though numerous credit cards or loans could help borrowers tide over their financial needs, it is not prudent to have various debts together. Lenders consider borrowers with multiple obligations short on credit, which could hamper their potential repaying capability. If a borrower fails to repay numerous debts on time, this could negatively impact their credit score. So, avoid having multiple credit cards or loans at one time or maintain a time gap between various debts. It will help improve their credit score.
7. Track Credit Report
Credit score forms part of the comprehensive credit report issued by India’s four authorized credit bureaus: CIBIL Equifax, Highmark™ and Experian. Regular tracking of the credit report will bring any inconsistencies or errors to the notice of the concerned bureau or authority. Getting the same rectified immediately is another way how to improve credit score in 30 days. Otherwise, errors or mistakes in credit reports negatively impact the credit score.
Time to Summarize
It's ironic but how to improve your credit score fast takes patience. You must strictly adhere to the above guidelines and never give in to temptations. The results will be rewarding when you sail through the process of loan approvals in the near future.
Now that you know how to increase credit score quickly, it’s time to get down and dirty with it. Wait! Do you already have a healthy credit score and now want to apply for a personal loan or any other type of loan? If so, then Tata Capital has some good news! We offer a wide array of loans at some of the most competitive personal loan interest rates with flexible repayments, tenures and high limits.
Visit our website to know more today!
05 February 2024
6 mins read
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