When planning to apply for a loan, the first step is to improve your credit score to gain the lender’s trust. A good CIBIL score demonstrates consistent repayment habits, sound financial position, and sufficient repayment capacity. A decent credit score helps achieve easier and faster loan approval at lower interest rates and favourable terms and conditions. Ranging from 300 to 900, lending institutions expect a score of at least 700-750 to approve your loan application.
If you want to know how to improve your credit score in 30 days, the most important step is to project yourself as a responsible borrower with good intentions to repay what you borrow. Paying credit bills on time, using credit cards responsibly, and reducing the credit utilisation ratio are the most valuable tips. Let's look at them in detail.
Try These 5 Tips to Improve Your Credit Score in 30 Days
The credit score is a crucial measure to determine your solvency and creditworthiness. Lending institutions use this 3-digit number as a yardstick when evaluating your loan applications, especially if you apply for an unsecured loan like Personal Loan. So, before applying for credit, be sure to check CIBIL online and learn how to boost your credit score in 30 days. Are you a potential buyer looking to improve your credit score fast? Remember, there is no magic wand to make it happen overnight. However, here is a set of practices that can help improve your credit score in 30 days:
1. Paying on Time
Your repayment history largely impacts your credit rating. When you borrow a loan or use a credit card, be sure to pay its EMIs or credit card bills in full and on time. Delaying their payments can drastically reduce your credit score, compromising your creditworthiness when you apply for a new credit product. Therefore, the first and foremost strategy to improve your credit score in 30 days is to pay your loan EMIs and credit card bills on time.
Clearing these payments a few days before the last date is even better. It will prove solvency and increase your eligibility for a higher credit limit, boosting your credit score quickly. Therefore, whether you are a loan borrower or a credit card user, never delay, miss or default on the repayments. When taking a loan, use an EMI calculator to choose a repayment term with EMIs you can easily afford. It is a great way to keep your EMIs affordable and ensure timely repayment.
Also, Read: What Is CIBIL Score - Credit Score Limit: Meaning and Impact
2. Applying for a Credit Card
You can only improve your credit score by using credit. If you have never taken a loan or used a credit card, you have no credit history, which is detrimental to your credit score and eligibility. Credit providers want to see how much credit you have used in the past and how you have handled it. No credit history places you in a risky position, making it difficult for credit companies to trust you with timely repayment.
Getting a credit card is important, even if you plan to use it sparingly. Use a small amount from it each month and repay the bill amount in full and on time to build your credit score.
3. Keeping Credit Utilisation Low
A credit card gives you interest-free credit up to a certain amount for around 45 days. That means you can make purchases on credit now and repay it with the credit card bill after 45 days. However, remember not to use all of your credit limit immediately.
Credit card providers determine your credit limit based on your eligibility, repayment history, credibility, professional stability, etc. For instance, if you have a credit limit of Rs 1 Lakh, do not take this amount for granted and use all of it each month. Using more than Rs 50,000 from the available credit limit projects you as a credit-hungry borrower, increasing your credit utilisation ratio and hurting your credit score. Reducing the CUR below 50% is a good way to learn how to improve your credit score in 30 days.
4. Credit Limit Request
If you have a consistent repayment history, your credit card provider won’t mind increasing your credit limit. Some credit companies offer high credit limits as promotional offers to their reliable credit holders. When looking for ways to improve your credit score in 30 days, you can request a raise in your credit limit from your credit card company. Increasing your credit limit will reduce your credit utilisation ratio and improve your credit score.
Also, Read: How To Get A Perfect 900 Credit Score?
5. Choosing a Cash-Backed Credit Card
Getting a cash-backed credit card is an excellent way to achieve a good CIBIL score fast. You can obtain one by depositing a lump sum equivalent to your credit limit. It guarantees timely repayment and helps improve credit rating in 30 days. It is a great product for first-time customers with no credit history.
Here, you will learn the implications of different credit score ranges on your loan eligibility:
| CIBIL score | Creditworthiness | Chances of loan approval |
| 0-550 | Bad | Low |
| 550-640 | Poor | Difficult |
| 650-699 | Average | Possible |
| 700-749 | Good | High |
| 750-900 | Excellent | Very High |
How Long Does It Take to Rebuild a Credit Score?
Rebuilding a credit score isn't an overnight process—it takes time and consistent effort. Here's a breakdown of the timeline:
Immediate Actions: Taking initial steps like paying bills on time, reducing credit utilization, and addressing errors can show some improvement within a few months.
Moderate Progress: With consistent positive behavior, such as regular payments and responsible credit use, you might see noticeable changes in your score within 6-12 months.
Steady Improvement: Continuing good credit habits over 1-2 years can lead to a more significant boost in your score.
Long-Term Rebuilding: Reaching a substantially higher credit score can take several years, especially if there were severe past issues like bankruptcy or foreclosure.
Also, Read: How To Increase Cibil Score From 500 To 750
How Credit Scores Are Calculated?
If you're wondering how to access your CIBIL score without charge, here's what you can do:
- Visit the Hero FinCorp official website of the credit bureau.
- Sign up or log in using your credentials.
- Complete an online form with required information, including your PAN number.
- Submit the form.
- Verify your identity by clicking the link sent to your registered email address.
- Answer a few credit-related questions.
- Receive your credit report along with a free CIBIL score via email.
Now that you know how to raise your credit score in 30 days, it’s time to use these tips to build a solid credit score and be eligible for unsecured loans, and short-term loans from reliable lending institutions like Hero FinCorp. The institution extends an array of loans to meet diverse financial needs, encompassing Personal Loans, Business Loans, Two Wheeler Loans, Pre-owned Car Loans, and more.
Also, Read: How to Increase CIBIL Score from 600 to 750
Frequently Asked Questions
1. Is it really possible to boost your credit score in just 30 days?
Do you still need clarification? Can I raise my credit score in 30 days? The answer is yes. With the right strategies, dedication, planning, and perseverance, you can achieve a good CIBIL score in 30 days.
2. How to get a 700 credit score in 30 days?
Paying your credit bills on time, applying for a credit card, maintaining a low credit utilisation ratio, requesting an increase in the credit limit, and choosing a cashback credit card are some ways to get a 700 credit score in 30 days.
3. How does credit utilisation impact my 30-day credit score goal?
Your credit utilisation ratio is crucial to your credit score. A higher CUR means you largely depend on credit for everyday expenses, projecting you as a credit-hungry borrower. However, reducing the credit utilisation ratio can significantly help improve credit score in 30 days.
4. How vital are on-time payments for the 30-day strategy?
On-time payments are vital to improving your credit score in 30 days. Each timely payment improves the credit score by a few points. So, if you are looking for a strategy on how to raise your credit score in 30 days, on-time payments within this period will help for sure.
Disclaimer: The information provided in this blog is based on research. The amount of a personal loan can vary based on your CIBIL score, with a higher score often enabling you to qualify for a larger loan amount with favorable terms.
