Lending institutions check factors such as creditworthiness, repayment potential, and employment history before disbursing loans. Therefore, borrowers need to maintain a good credit profile.
Strategies to boost your credit score above 750
Robust regulatory reforms now require credit scores to be refreshed every 15 days. This makes timely repayments, avoiding defaults and missing payments, even more impactful for borrowers.
- On-time EMI and bill payments matter more than ever.
- Avoid closing long-standing credit accounts, such as old credit cards. This will help in building a long credit history, which boosts credit profiles.
- Initiate regular credit report checks so that you can identify and dispute potential errors quickly.
- Raise and focus on resolving disputes through the appropriate channels so that you can ensure keeping your credit score healthy.
Why biweekly credit score updates make timely payments crucial
The central bank’s push for more frequent credit data updates rewards disciplined borrowers. With scores recalculated biweekly, missed payments or excess credit usage show up much sooner, urging consumers to monitor their credit health closely
As scores are recalculated biweekly, missed payments or excess credit usage show up much sooner. That is why maintaining a low credit utilisation ratio becomes indispensable.
Abhishek Dev, Co-founder and CEO, Epsilon Money, echo the same idea by saying, “Consistently paying all EMIs and credit card bills on time is the key to having a good CIBIL. Also, keeping the credit utilisation ratio less than 30% helps—meaning if you have a limit of ₹5 lacs, you spend less than ₹1.5 lacs. Maintain a healthy mix of credit types (secured and unsecured loans) and avoid frequent or back-to-back loan applications.”
5 tips to increase your credit score over 750
- Promptly dispute errors in your credit reports immediately.
- Bring down your overall credit utilisation ratio below 30%.
- Focus on maintaining a healthy mix of secured and unsecured loans.
- Space new personal loan, credit card, or home loan applications at least a few months apart.
- Set up auto debit reminders to ensure that all credit card bills and personal loan EMIs are cleared within the stipulated time.
How to sustain a credit score above 750
By focusing on following these proven strategies, borrowers can boost their credit scores. By paying credit card bills, home loan EMIs, and personal loan EMIs on time, along with other similar repayments, borrowers can slowly but surely build creditworthiness.
Lending institutions consider a credit score of over 750 to be reputable. Such a score helps in seamlessly securing new loans and credit cards. It is a sign of financial stability, and by following these strategies properly, such a score can not only be achieved but can even be sustained.
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Disclaimer: Mint has a tie-up with fintechs to provide credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards, and credit scores. Mint does not promote or encourage taking credit, as it comes with risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
