How to Increase CIBIL Score from 500 to 750+: Proven Steps for Faster Credit Growth

Your CIBIL score is one of the most important numbers in your financial life. Ranging from 300 to 900, it tells lenders how trustworthy you are as a borrower. A score of 500 is considered poor, while 750 and above is generally classified as good, opening doors to easy loan approvals and lower interest rate.

If you’re wondering how to increase CIBIL score from 500 to 750, the journey is possible—but it requires discipline and the right strategies. According to TransUnion CIBIL, 80% of loans in India are sanctioned to individuals with scores of 750+, which means improving your score is not just about credit—it’s about financial opportunity.

How CIBIL Score is Calculated

CIBIL and other credit bureaus (Experian India, CRIF High Mark, Equifax) calculate your score based on five key factors:

1. Payment History (35%) – Timely repayment of EMIs and credit card dues.
2. Credit Utilisation (30%) – The percentage of your credit limit you use.
3. Credit History Length (15%) – How long you’ve maintained accounts.
4. Credit Mix (10%) – Balance of secured (home loan, auto loan) vs. unsecured credit (credit cards, personal loans).
5. New Credit Enquiries (10%) – How often you apply for loans/credit cards.

Why Do People Get Stuck in the 500–600 Range?

If your CIBIL score is around 500, here are the most common reasons:

• Missed or delayed EMI/credit card payments
• High credit utilisation ratio (using 70–90% of your card limit)
• Too many personal loans or unsecured borrowings
• Errors in your credit report (old closed accounts showing active, wrong overdue amounts)

These factors drag your CIBIL score down, but the good news is—they are fixable. A CIBIL repair agency can help you with reliable CIBIL score correction services, often supported by platforms like Credit Repair Cloud.

How to Increase CIBIL Score from 500 to 750: 8 Proven Ways

Improving your CIBIL score is like building a strong financial reputation—it doesn’t happen overnight, but consistent positive steps can move you from 500 to 750 in about 12–18 months. Let’s break down how to increase your CIBIL score fast:

1. Pay EMIs and Credit Card Bills on Time

Your payment history carries the highest weight (35%) in your CIBIL score. Even a single missed EMI or delayed credit card bill can bring your score down by 50–100 points. Lenders see late payments as a sign of unreliability.

✅ What to Do:

• Set up auto-debit or standing instructions for EMIs and minimum credit card dues.
• If you face cash flow issues, talk to your bank about restructuring instead of defaulting.
• Remember: Settling loans (partial payments) is also reported negatively and stays for up to 7 years.

2. Reduce Credit Utilisation

Credit utilisation ratio (CUR) is how much of your total credit limit you’re using. High usage signals risk—even if you’re paying on time. For example, if your card limit is INR 1,00,000 and you’re constantly spending INR 90,000 (90% CUR), it shows dependence on credit.

✅ What to Do:

• Keep usage below 30%. The ideal is 10–20%.
• If your spending is high, split across multiple cards or ask your bank to increase your limit (without increasing expenses).
• Experian India reports that borrowers with a CUR under 30% see scores rise 20–25% faster.

3. Don’t Close Old Credit Accounts

CIBIL considers the average age of credit accounts. Closing old credit cards reduces your overall “credit age” and can drag your score down. For example, if you’ve had a card since 2012, that long track record adds stability—even if you don’t use it much.

✅ What to Do:

• Keep your oldest accounts active (maybe use them for small monthly expenses like fuel or mobile bills).
• Only close cards if they have very high annual fees and no real benefit.

Read Also: Basic Services Demat Account – A Cost-Effective Option for Small Investors

4. Maintain a Healthy Credit Mix

CIBIL doesn’t just look at whether you repay—it also evaluates the types of credit you handle. Too many unsecured loans (like personal loans or credit cards) suggest high risk. Having a balance of secured credit (home loan, auto loan, gold loan) shows lenders you can manage structured, long-term credit responsibly.

✅ What to Do:

• If you only use credit cards, consider taking a small secured loan (gold loan, FD-backed loan).
• If you have only loans and no cards, try maintaining a credit card for diversification.
• This balance gives lenders more confidence and improves score stability.

5. Limit New Loan Applications

Every time you apply for a loan or card, lenders pull your report (a “hard inquiry”). Too many hard inquiries in a short time make you look “credit hungry.” Each inquiry can shave off 5–10 points, and multiple applications in 6 months can reduce your score by 25–30 points.

✅ What to Do:

• Apply only when necessary, not out of curiosity.
• Use pre-approved offers or soft inquiry tools (many banks provide eligibility checks without impacting score).
• Space out applications by at least 6 months.

6. How to Increase CIBIL Score from 600 to 750​: Check Report and Dispute Errors

Errors are more common than people realise. A CIBIL study showed that nearly 20% of reports in India had mistakes—like old loans still marked “active,” incorrect overdue amounts, or duplicate accounts. These errors unfairly drag your score down.

✅ What to Do:

• Get your free credit report once a year from each bureau (CIBIL, Experian, Equifax, CRIF).
• Check for: wrong loan status, incorrect overdue balances, or accounts not belonging to you.
• File a dispute online—bureaus must investigate and resolve within 30 days.

7. Use Secured Credit Cards or Builder Loans

If your score is already low (500–600), banks may reject normal cards or loans. A secured credit card (backed by a fixed deposit) or a credit-builder loan is the fastest way to rebuild history. These products are low-risk for banks, so they report your on-time payments positively.

✅ What to Do:

• Get a secured card with a small FD (INR 10,000–25,000).
• Use it responsibly and pay in full every month.
• Within 6–12 months, you could see a jump of 50–70 points.
• Digital lenders like Paytm Postpaid, Slice, and certain NBFCs also report repayment data to bureaus, giving you another chance to build credit.

Read Also: SEBI Registered Research Analyst: Full List, Eligibility, Fees & Everything

8. CIBIL Score Correction Services Provider

If you find it difficult to improve your credit score on your own, you can also consider seeking support from professional credit improvement agencies in India. These agencies specialise in helping individuals identify issues in their credit reports and guiding them toward sustainable improvement.

✅ How CIBIL Correction Agency Helps:

• Analyze your detailed credit report to highlight errors and areas of improvement.
• Negotiate with lenders for settlements or restructuring of loans where necessary.
• Provide personalised repayment strategies and financial discipline plans.

💡 Pro Tip: Improving your score isn’t about one big step, but many small, consistent habits. Combine these strategies and you can realistically move from 500 to 750 within 12–18 months.

How Long Does It Take to Improve Credit Score?

Credit score improvement doesn’t happen overnight. On average:

• 3–6 months: If you consistently pay on time and reduce utilisation, expect a 50–100 point jump.
• 6–12 months: Adding secured credit and fixing errors can push you to 650–700.
• 12–18 months: With strong discipline, it is realistic to move from 500 to 750.

How to Improve CIBIL Score: Common Myths

• Myth: Closing loans increases score.
  Fact: It may reduce credit history length, which hurts the score.
• Myth: Checking your own score lowers it.
  Fact: Self-check is a “soft inquiry” and has no impact.
• Myth: Settling loans improves score.
  Fact: Settlements are marked negatively and remain for 7 years.

Final Word

Improving your credit score is not about tricks—it’s about discipline. If you are stuck at 500, the road to 750 may look long, but with consistent repayments, smart usage, and error correction, you can get there in 12–18 months.

Remember: A higher CIBIL score means not just loan approvals but also lower interest rates, potentially saving you lakhs over a lifetime.

If you’re serious about learning how to increase your CIBIL score fast, start today—your future financial freedom depends on it.

FAQ: How to Improve CIBIL Score