How to Improve Credit Score in 30 Days in India?

Your credit score plays a significant role in your financial life. It is one of the main factors deciding your eligibility for low-interest rates, credit cards, home loans, personal loans, and a lot more. However, there's a common myth among people that improving your credit score requires years. However, with the right steps and discipline, you can see improvements in your credit score in as little time as 30 days.

This guide explains how to increase your credit score in a short time span with simple actions. All these tips are simple to follow and helpful even if you’re rebuilding your credit. It is also helpful if you have a few missed payments or are currently managing high credit card balances.

What is the Ideal CIBIL Score?

The CIBIL score ranges between 300 and 900, and a score above 700 is generally considered good.

Here is a simple breakdown of what each CIBIL score range means:

1. Excellent (750 and above): This range indicates a high creditworthiness and increases the chances of getting credit easily with favourable terms.

2. Good (700-749): Falling within this range demonstrates good credit management skills and increases the probability of credit approval.

3. Fair (650-699): A score in this range suggests a satisfactory credit history; however, it may require some improvement to access credit at favourable terms.

4. Average (550-649): Individuals with scores falling in this range might face difficulties in getting credit approvals. Lenders may charge higher interest rates or ask for collateral as security.

5. Poor (less than 550): This range signifies a higher credit risk, making it challenging to obtain credit facilities. Improving the credit score is crucial for accessing credit in the future.

A high credit score indicates that you manage credit responsibly and make timely payments. To begin improving your score, you can check your free CIBIL score on the website of any credit bureau. It can be from TransUnion CIBIL, Experian, Equifax, or CRIF High Mark. You can also access free CIBIL score checks through various financial institutions and trusted lenders.

Also Read: 6 Factors That Will Not Affect Your CIBIL Score

Top 7 Ways to Improve Your Credit Score Before Applying for a Loan

Here are the top 7 ways that will help you improve your credit score in 30 days:

1. Check Your Latest Credit Report

Download your latest credit report and read it carefully. It will contain your entire credit history, open credit accounts, late payment history, outstanding dues, and the history of all your payments.

Sometimes, your credit score can be low because of credit report errors, wrong loan entries, or old outstanding debt you have already paid. If there are any such errors, file a dispute directly with the credit bureau that issued your report. By correcting inaccurate information, you can improve your credit score over time.

2. Pay All Outstanding Dues Immediately

One of the quickest ways to improve your CIBIL score is by clearing unpaid amounts. Even if you have a low overdue balance, it will affect your score. So, here's what you should do:

• Pay pending credit card bills.

• Clear the loan EMIs that you missed

• Close any outstanding dues.

Making timely payments and clearing your dues builds a positive payment history. This is one of the smart ways to increase your CIBIL score quickly.

3. Lower Your Credit Utilisation Ratio

Your credit utilization ratio is the proportion of the credit limit you utilise. If you use too much of your limit, lenders may assume you rely heavily on credit. Keep the credit usage below 30% of your limit. For example, if your limit is ₹1,00,000, try not to spend more than ₹30,000. You can also spread expenses across two credit cards if needed. Reducing credit utilisation and lowering credit card balances is one of the quickest ways to improve your CIBIL score.

4. Pay Every Bill Before the Due Date

Pay every bill on time for the next 30 days. Even a one-day delay can affect your score. Set up reminders on your phone or enable automatic payments. Credit card issuers and lenders place high importance on consistent, timely repayments.

5. Avoid New Credit Applications

People think that applying for multiple loans increases their chances of approval; however, it is actually the complete opposite. Every time you apply for new credit, lenders make a hard inquiry on your credit report. Too many hard inquiries may reduce your credit score.

So, over the next 30 days, do not apply for new personal loans or any other loans. Also, do not apply for multiple credit cards. This will help reduce the strain on your credit profile and prevent your score from dropping.

6. Don't Close Old Credit Accounts

An older credit history increases your score as old accounts indicate that you have been successful in handling credit for a longer time. Similarly, closing old accounts shortens your history and may lower your score. So, if there is zero or a minimal annual fee for credit account maintenance, it is better to keep these accounts open.

7. Pay More Than the Minimum Amount Due

If you use credit cards, avoid paying only the minimum amount due, as it increases your debt and can negatively impact your credit score. Paying the full amount, or at least a significant portion of the bill, shows responsible credit behaviour and helps maintain a healthy credit profile.

Additional Tips to Increase Your Credit Score

Here are some more tips to help you improve your credit score:

1. Increase Your Credit Limit, if Possible

This might sound contrary to what you might expect. However, raising your credit limit lowers your available credit usage percentage. If you have been a responsible user, you can get your limit increased from the bank/lender based on their policies. Also, use the increased limit judiciously to reduce your credit utilisation, and not to spend more.

2. Clear Small Debts First

The small, unpaid amounts hurt your credit score the same way as larger dues. Try to clear at least two to three small credit balances within 30 days. This helps in quick improvement in your credit health and indicates an active effort to manage debt.

3. Use an FD-Backed Credit Card if Your Credit Score is Low

Get a secured credit card if your score is very low or if you have been rejected by lenders earlier. You have to open a fixed deposit, and the bank issues you a card supported by that deposit.

This card can be utilised in building credit and improving your credit score within a few months, with disciplined use and timely payments.

4. Avoid Debt Settlement or Loan Default

People often choose to settle loans when they are unable to repay them. While this may provide temporary relief, it creates a negative credit event. A loan default or settlement remains on your CIBIL report for several years. Therefore, avoid settling loans unless absolutely necessary. Keep in mind that some changes to your credit report reflect quickly, while others may take longer.

Also Read: 6 Factors That Will Not Affect Your CIBIL Score

To Conclude

Improving the credit score or CIBIL score in 30 days can be easier if you take the right steps. Small, simple actions can lead to significant improvements. By staying consistent and following the steps discussed above, you can see noticeable results even in a short time.

Your financial future depends on responsible credit behaviour. Start today, build good habits, and watch your score rise steadily. Check your free CIBIL score with Poonawalla Fincorp today to access better loan offers, enjoy lower interest rates, and secure approvals more easily.

FAQs

Can my credit score drop even if I pay all my bills on time?

Yes. Your score can still drop due to high credit utilisation, closing old accounts, or recent hard inquiries.

How soon do credit bureaus update changes after I clear my dues?

Credit bureaus in India typically update credit reports based on when lenders submit information. Traditionally, this happened every 30–45 days. However, under recent RBI guidelines, credit information may now be updated every 15 days.

Will checking my own credit score frequently reduce it?

No. Soft inquiries like checking your own score do not affect your credit score at all.

Can increasing my credit limit harm my score in any way?

It won't harm your score unless you use the higher limit to spend more and increase your credit card debt.

Does paying off a loan early improve my score?

It can help slightly; however, the impact depends on your overall credit mix and repayment history.