How to Increase Your CIBIL
Score from 500 to 750

If you’re struggling to get a loan due to a low credit/CIBIL score, you may be wondering how to get your credit score from 500 to 750 or even higher. The good news is that credit score improvement is achievable with consistent financial discipline, smart credit management, and timely corrections. Whether you’re rebuilding after past financial challenges or just starting your credit improvement journey, understanding the right steps can significantly boost your creditworthiness and loan eligibility.

This article will explain what a CIBIL score is, how to increase your CIBIL score from 500 to 750, and how long the overall process typically takes.

What Is a CIBIL Score?

A CIBIL score is a three-digit number issued by TransUnion CIBIL, short for Credit Information Bureau (India) Limited, that summarises your overall credit history and credit behaviour. Lenders and financial institutions use it during credit risk assessment to evaluate how safe it is to lend to a borrower.

Here’s a quick overview:

• CIBIL score range: 300–900
• The highest CIBIL scores reflect the lowest credit risk
• A score of 700+ improves chances of loan approval

How to Increase CIBIL Score from 500 to 750

Here are the steps involved in how to improve your CIBIL score from 500 to 750:

1. Lowering Credit Utilisation Ratio

As a thumb rule, it is favourable for a financial profile if a good credit utilisation ratio is maintained. For this, one needs to use less than 30% of the total available limit.

2. Avoiding Closure of Older Accounts

Older accounts show your long-term association and connection with the lending institutions, which is considered good by the credit bureaus. This further helps to improve the CIBIL score and your overall credit health.

3. Improving Payment History

When learning how to improve your CIBIL score from 500 to 750, the role of a strong repayment history cannot be overlooked, as it portrays you as a responsible borrower.

4. Monitoring of Credit Reports

Individuals need to regularly (not constantly) conduct credit monitoring and CIBIL score checks, as it helps them understand their creditworthiness and take steps to improve their score if needed.

5. Multiple Credit

We should avoid applying for multiple loans, cards and other debt instruments at once, as it tends to depict a picture of one who is heavily dependent on credit. This behaviour is immediately tracked by credit bureaus, which further leads to a fall in the credit score and slows credit improvement.

6. Avoid Enquiries about Credit Cards

An individual’s credit score may be affected if they enquire frequently about other credit cards. Therefore, one should avoid this and instead investigate through online platforms without contacting the credit card companies, thus helping them work towards a 750 CIBIL score.

7. Pay EMIs on Time

It is always a very good credit management practice to ensure that one never misses a single EMI or credit card payment. This should be done on or before the due date. Missing a single payment or any delay in the same could lead to penalty charges as well as a reduction in the overall credit score.

8. Always Pay the Complete EMI Amount

Many people rack up a lot of debt by only paying the minimum amount due. However, you must know that in doing so, the rest of the amount payable will continue to accrue interest, which will further reduce your credit score. On the other hand, making regular on-time payments could help you improve your credit score over a period of 1-2 years (depending on the tenure of the loan).

9. Pay Off Your Card Balance via Personal Loan

A personal loan has a lower interest rate compared to that of credit cards. It is advisable to use a personal loan to pay off your credit card balance and then pay the personal loan through regular, more manageable monthly EMIs. A personal loan EMI calculator can be used to stay on top of your monthly payments.

These practices form the foundation of how to improve your CIBIL score from 500 to 750, and with consistent effort, meaningful progress becomes achievable.

How Long Does It Take to Improve Your Credit Score?

When learning how to get a 750 credit score from 500, it is important to understand that credit recovery is a gradual process. The exact time required depends on factors such as your past credit behaviour, current outstanding debt, credit utilisation, and repayment consistency. Below is a quick overview of how long different credit events may take to reflect in your score:

With consistent repayment and strong financial discipline, you can steadily recover and move toward a good CIBIL score.

Conclusion

Regular credit monitoring and disciplined financial behaviour are essential for maintaining a good credit score, as it directly affects key loan aspects such as personal loan eligibility and personal loan interest rates.

At SMFG India Credit, personal loan applicants are required to have a minimum CIBIL score of 705 (or 700 for self-employed individuals) to qualify. You can use a personal loan eligibility calculator to estimate your borrowing capacity before applying, and ensure that all necessary personal loan documents are ready for a smooth and hassle-free application process.

Apply now to begin your personal loan journey today, or contact us for more details.

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