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How Long Will It Take to Increase Credit Score? : Easy Steps

How Long Will It Take to Increase Credit Score? : Easy Steps

If you are planning to take a loan but are worried about having a low credit score, say below 650, you may have to reconsider your decision and delay it till your CIBIL score is back on track. Several factors could lead to a poor CIBIL score, such as outstanding or delayed loan EMIs and bills, poor repayment history, errors in the credit report, a high credit utilization ratio, and so on. While it is possible to boost your CIBIL score, you should know that the process will take time and patience. Read on to know how you can increase credit score to 750+ and how long it will take you to get there.

How Long Will It Take to Increase Credit Score?

Credit score management is easier for borrowers who have been wise in repaying the loan without ever missing or delaying the payment. On the other hand, those who have been defaulting on timely payments consistently may find it difficult to increase credit score. However, roughly speaking, the process may take anywhere between 6 and 12 months.

If your CIBIL score is between the range of 650 and 750, you may see a positive impact on the score in about 6 months provided you take the necessary measures to boost credit score. By the end of the one-year period, you may have a higher score, enough to let you borrow a desired loan amount or purchase a credit card faster than expected. However, the time needed to build a CIBIL score differs from one case to another.

Therefore, it is a good idea to start reviewing your credit score beforehand and work towards improving it so the chances of getting a credit product at a reasonable rate are higher. Needless to say, banks and other lending institutions prefer a score of 750 and above for faster approvals and affordable rates.

Tips on How to Increase Credit Score

Here are a few tips that can help you increase credit score –

Improve Repayment History

You can improve your repayment history and eventually boost credit score by paying off your loan EMIs and credit card bills regularly on time. Even a minor default or slight delay in the payments can negatively impact your score. Therefore, improving credit history should be one of the first measures to increase credit score.

Reduce Credit Utilization Ratio

Credit utilization ratio is the measure of your current debt divided by credit limit. It is one of the major factors affecting the CIBIL score. As a borrower, you should aim for a lower credit utilization ratio, preferably less than 30% of the total credit limit, to build a good credit score. To avoid putting all your expenses on a single credit product, you should spread it out by availing multiple credit lines. This will help bring down the credit utilization ratio.

Maintain a Healthy Mix of Credit

Another surefire way to build CIBIL score is to maintain a healthy credit mix. This can be done by availing of a combination of secured and unsecured loans. Secured loans, like car loan or home loan helps to boost credit score as they are long-term assets. Besides, for financial products that come with longer repayment tenor, for instance home loans, it is easier for borrowers to make regular payments. This helps maintain and balance the credit score.

Keep Your Older Accounts Open

Contrary to popular belief, closing your older accounts will not help you build your CIIBL score. Instead, if you want to increase credit score, you should keep them open. This is because having an older account implies a long-term association with carious lending institutions, banks and NBFCs, which is often seen in the positive light by the credit bureaus. A positive impression automatically helps to boost the credit score.

Regularly Monitor Credit Report

To maintain and build a good credit score, it is important to keep a track of your credit report. In rare cases, there could be a mistake or some inaccuracy in the report. Regular monitoring can help you spot these errors and discrepancies, which need to be reported immediately to the bureaus for rectification. A credit report free of errors surely helps increase credit score.

Avoid Taking Multiple Credits

Applying for several credit products at once implies that you are a credit hungry individual, which adversely affects the CIBIL score. Simply put, lending institutions are often reluctant to sanction loan applications fearing you to be a high-risk borrower struggling to pay the amount on time. Therefore, stick to limited credit purchase at a time.

Building a decent credit score does not happen in a day. However, if you know how to increase credit score, you can get your score up to 750 in 6-12 months. To check credit score, you can simply choose a lender and use the online CIBIL score checker tool available for free.


The primary objective to increase credit score and improve credit report is to help lenders assess the borrower’s creditworthiness – whether or not they are able to pay off the amount. On a scale of 300-900, a minimum score of 750+ is required for sanctioning of loans. Identify the credit score factors leading to a poor number and follow the useful tips listed above to enhance the CIBIL score. With the right approach and technique, you can build a strong credit report and achieve a high score in a year. Once your credit score reaches a decent level, compare the various credit products and apply for one that best suits your needs.