How to Raise Your Credit Score by 200 Points in 30 Days

Your credit score is one of the most important numbers in your financial life. It can determine your ability to get loans, credit cards, and even housing. If you’re looking to improve your CIBIL score quickly, you’ve come to the right place. With some focused strategies, it’s possible to boost your credit score by up to 200 points in just 30 days.

A good credit score is typically considered to be 750 or above on the CIBIL scale of 300-900. The higher your score, the more attractive you are to lenders. Conversely, a low score can make it difficult to access credit when you need it. Some common reasons for a low credit score include:

• Late or missed payments on loans or credit cards
• High credit utilisation (using a large portion of your available credit)
• Errors on your credit report
• Too many recent credit inquiries

If any of these sound familiar, don’t worry. With some proactive steps, you can learn how to improve your CIBIL score fast and get back on track. Let’s dive into the strategies.

Pay Down Credit Card Debt

One of the quickest ways to increase your credit score quickly is to pay down your credit card balances. Credit utilisation, or the percentage of your available credit that you’re using, accounts for 30% of your FICO score. The lower your utilisation, the better.

Ideally, you want to keep your utilisation below 30%. So, if you have a credit card with a ₹50,000 limit, aim to keep your balance below ₹15,000. Paying down your balances to this level can provide a quick boost to your score.

Consider this example:

Rahul has two credit cards with a total credit limit of ₹1,00,000. His current balances total ₹80,000, giving him a credit utilisation of 80%. By focusing his efforts and paying down ₹50,000 over the next 30 days, Rahul can bring his utilisation down to 30%. This significant reduction in utilisation can improve his credit score fast.

Pay Every Bill on Time

Your payment history is the single biggest factor in your credit score, accounting for 35% of your FICO score. Even one late payment can cause your score to drop significantly.

To avoid this, make sure you pay every bill on time, every time. Set up autopay where possible so you never miss a due date. If autopay isn’t an option, set reminders in your calendar or on your phone.

If you’re worried about affording a bill, reach out to your lender proactively. Many lenders are willing to work out a payment plan or defer a payment if you’re experiencing financial hardship. The key is to communicate before you miss a payment.

Become an Authorised User

If you have a family member or friend with a long history of on-time payments and low credit utilisation, ask if they’ll add you as an authorised user on their credit card. As an authorised user, their positive payment history will be reported on your credit report, which can help improve your CIBIL score quickly.

Keep in mind that you don’t even need to use the card to benefit. Simply being added as an authorised user can give your score a boost.

Dispute Inaccurate Information on Your Credit Report

Errors on your credit report can unfairly drag down your score. Common errors include:

• Accounts that don’t belong to you
• Incorrect payment statuses
• Inaccurate balances or credit limits
• Duplicate accounts

You’re entitled to free credit reports from each of the major bureaus annually. Review your reports carefully and dispute any inaccuracies you find. The bureaus are required to investigate and remove any information that can’t be verified. Getting errors removed can improve your credit score fast, often within 30 days.

Get Credit for Non-Credit Payments

Traditionally, only credit accounts like loans and credit cards are reported to the credit bureaus. However, newer services like Experian Boost allow you to get credit for on-time payments on bills like your phone, utilities, and even your Netflix subscription.

By opting into these services, you can add positive payment history to your credit report, which can increase your credit score quickly.

Avoid New Credit Applications

Each time you apply for credit, a hard inquiry is pulled on your credit report. Too many hard inquiries in a short period can ding your score. If you’re trying to improve your CIBIL score quickly, avoid applying for new credit unless absolutely necessary.

If you do need to apply for credit, try to bunch your applications together. For example, if you’re shopping for a car loan, try to do all your applications within a 14-day period. Multiple hard inquiries for the same type of credit product in a short timeframe are often treated as a single inquiry, minimising the impact on your score.

Consider the Available Options

If you have a low score or a thin credit file, a secured credit card can help you build credit. With a secured card, you put down a cash deposit that serves as your credit limit.

Because you’re essentially borrowing against your own money, secured cards are easier to qualify for than traditional credit cards. And as long as you use the card responsibly and pay your bill on time, your positive payment history will be reported to the credit bureaus, helping improve your credit score fast.

Raising your credit score by 200 points in 30 days is an ambitious but achievable goal. By implementing these strategies consistently, you can see significant improvement in your score in a short period.

Remember, credit building is a marathon, not a sprint. While these tactics can help increase your credit score quickly, it’s important to maintain healthy credit habits over the long term.

If you’re looking for tools to help you on your credit journey, consider personal loan options on Airtel Finance. With competitive interest rates and an easy online application process, an Airtel Finance personal loan can help you consolidate debt, lower your credit utilisation, and improve your CIBIL score quickly.

FAQs

1. How long does it take for my credit score to update after I pay off debt?

   Typically, creditors report to the credit bureaus every 30-45 days. So you can expect to see an improvement in your score within 1-2 months after paying off debt, assuming no new negative items.

2. Can I improve my CIBIL score quickly if I have collections or charge-offs on my report?

   Yes, you can still improve your score, but you’ll need to address these negative items. Try to negotiate a pay-for-delete with the collection agency, where they agree to remove the item from your report in exchange for payment.

3. How much will being added as an authorised user improve my credit score?

   The impact depends on the primary cardholder’s credit profile. If they have a long history of on-time payments and low utilisation, being added could increase your score by several dozen points.

4. What’s the fastest way to increase my credit score?

   The fastest ways to boost your score are paying down credit card balances to lower your utilisation, getting added as an authorised user on a well-managed account, and disputing any errors on your credit report.

5. How can I monitor my progress as I work to improve my CIBIL score fast?

   Many credit card issuers and personal finance websites offer free credit monitoring. These services will alert you to changes in your score and help you track your progress. You can also check your credit score for free through the Airtel Thanks app.