How to Increase Your Credit Score to 800?

When you want to apply for a loan, your credit score is one of the most important things that any banker or financial institution will check. Your credit score indicates your repayment ability and disciplined financial habits. This is the information that determines loan eligibility and defaulter probability. A high credit score helps you to get better and quicker loans. However, a lower credit score can be disastrous for individuals when they need money.

As a customer, you need to keep in mind that there are plenty of ways to get loans. All banks and financial institutions ask for the borrower's credit score while granting loans and credit cards. Though some customers might have a lower credit score, they always have ways and means to boost their credit score fast.

Banks and Financial institutions use credit scores as a reference point to evaluate the creditworthiness of borrowers. A credit score of 700+ will ensure you quickly get your loans and credit cards from financial institutions. Any score below that will increase the possibility of rejection of the loan applications.

Need to Have a Good Credit Score

A good credit score will increase creditworthiness as an individual in the eyes of banks and other financial institutions. This will also lead you to find loans with the most attractive interest rates for regular repayment. This will encourage financial institutions to grant higher loans at attractive interest rates and budget-friendly EMIs. Before we dive into it to determine whether 800 is an attractive CIBIL score, let us get a clear idea about the Credit Score Ranges.

How to Increase My Credit Score to 800?

• Review Your Credit Report Regularly: Monitoring your credit reports regularly will help you identify your credit history and any outstanding balances that might require immediate attention. If you encounter any inaccuracies, contact the credit bureaus for help rectifying them. Resolving these issues can also be done online.
• Ensure Timely Bill Payments: Your repayment history has a positive or negative effect on your credit score. You need to have a disciplined track record of paying the loan EMIs and Credit Card bills on time. You can also use the Auto Debit option to clear the most recurring payments before the due date automatically.
• Have a Good Credit Mix: Credit Mix means having a diversified set of loans lined up for you. You can have a good mixture of both secured and unsecured loans. This will considerably increase my credit score.
• Extend Your Credit History: Creating a good credit history for yourself takes time. You need to handle your credit responsibly for a longer period of time. It is always a good practice to keep track of all the successful payments that you have made in the past. It will give a positive impression of you in the eyes of the lender. They will think of you as a reliable and low-risk customer.
• Building a positive credit history A favorable credit history gives you a sense of financial stability and security. You need to manage your credit consistently for a more extended period. This includes paying your bills on time, keeping low credit card balances, and avoiding unnecessary debt. This positive credit history helps you get loans quickly at better interest rates. You need to check your credit report regularly and ensure that your credit profile is healthy, setting up for future financial success.
• Limit Hard Credit Inquiries: Every inquiry you make for a loan impacts your credit report. Lending companies make use of this query to assess your repaying capacity. Always enquire about a loan only when you require it the most, and you are also sure of your eligibility. Apply for the best loan and minimize hard inquiries on your credit report.
• Use Credit Cards Wisely: If you want to increase your credit score, you need to use your credit card carefully. Making purchases and paying for them will reflect on your credit history and increase your credit scores.
• Keep a Check on Previous Debts: You need to monitor your previous debts to clear any available outstanding. If you are struggling with managing your monthly EMIs, you can revise a repayment plan and opt to extend your loan tenure.
• Maintain Your Credit Utilization Below 30%: The credit utilization ratio is one of the main factors in deciding your credit score. It is always a good practice to keep the credit utilization ratio under 30% of your total available credit limit. One of the best ways to keep it under 30% is to pay your credit card bills on time.

Benefits of Good Credit Score

Now that you know that having a good credit score can help you in many ways. The following are some of the benefits of maintaining a good credit score.

• Competitive Interest Rates on Loans: A good credit score helps you secure loans from financial institutions at competitive interest rates.
• Chances for Qualifying for a Loan: Having a good credit score helps build trust with the banker and enables you to qualify for and receive quick approval on loans. A good credit score indicates to the banker that you have handled your credit responsibly.
• Higher Loan Amount: A higher credit score is an indicator that the banker will award a higher loan amount. It also helps you secure loans with the best offers.
• Good Repayment Plan: If you have a good credit score, you can choose your repayment plan according to your financial capacity. You can reduce your EMI amount to maintain your monthly budget accordingly.

Conclusion

Maintaining good financial discipline is the first step towards a good credit score. Regularly monitoring your credit, limiting your credit card usage, making automated EMI repayments, and diligently managing your expenses gives a great boost to your credit score. Following the above habits regularly can quickly increase your credit score by 800+.

CreditMantri can assist you in regularly securing your credit report. With the guidance from our expert credit coaches, you can easily reach a credit score of 800. Get in touch with CreditMantri Today!

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Disclaimer

This page includes information that has been compiled from many sources and is only offered for informational purposes. Given this type of data might change over time, we cannot guarantee that the information supplied or included within it, is accurate. It is anticipated that the user would confirm with the relevant source prior to taking any choices or actions.