how to improve credit score in 30 days

How To Improve Credit Score In 30 Days in India?

December 08, 2022 • 4631 views

How to improve credit score in 30 days in India – is one of the most important question comes to many people’s mind when it comes to credit score. As borrowers, we all have been in a situation where we felt like we wanted to improve our credit score, so that we could get a loan easily when required. Hence, we might have Googled topics like how to improve credit score in 30 days. A credit score is one of the important factors that directly impact your loan approval. A good or bad credit score could be the key differentiator between loan acceptance or rejection from a lender.

The creditworthiness of a borrower is measured by credit score. As a borrower, you can check your credit score to ensure you meet the desired credit score.

The process of checking your credit score is termed an inquiry. Whenever a borrower checks his/her credit score, it is categorized under soft inquiry. Alongside, inquiries made by employers or others fall under soft inquiry. However, when a lender checks your credit score before approving your loan application, it is termed a hard inquiry.

Improving your credit score is an ongoing process and achieving a good credit score requires the culmination of many good financial habits.

5 Ways to Improve your credit score in 30 Days

Here are a few factors that might help you in improving credit score in 30 days:

Making payment on time

Making payments on time plays a crucial role in keeping your credit score healthy. As a borrower, missing your EMIs and defaulting in making timely payments can create a negative impact on your credit score. Conversely, making timely payments creates a positive impact on the lender which helps in improving your credit score. Also, it is a good financial habit to make payments on time. 

Getting a Credit card

Having a credit card helps to create a credit history. Lenders encourage a borrower with a longer credit history as it allows them to understand the creditworthiness of the borrower. However, credit cards can also be used for interest-free credit for a short term.

Keeping a low credit utilisation ratio

To improve your credit score, you must keep your credit utilisation ratio below 30%. This is one of the best ways to improve your credit score in 30 days in India. For example, for a credit limit of ?2 Lakh, you must avoid spending more than ?60,000. This will help you in increasing your credit score.

Also Read: How To Get A 1 Lakh Personal Loan In India?

Requesting a high credit limit 

Requesting a higher credit limit with your existing lender will help you to showcase yourself as a responsible borrower. Factors such as keeping your credit utilisation ratio below 30% and repayment of all your bills on time will help you get approval for a higher credit limit.

Choosing a cash-backed credit card

You can choose a cash backed (Backed by Fixed Deposit) credit card to improve your credit score faster. A cash-backed credit card might require you to deposit a one-time amount like your credit limit. This ensures a guarantee of repayment which will help in improving the credit score faster.

Below is the table showcasing your creditworthiness according to your CIBIL score.

CIBIL Score

Creditworthiness

Chances of Loan Approval

550 and below

Bad

Low

550 and 649

Poor

Difficult

650 and 699

Average

Possible

700 and 749

Good

High

750 and 900

Excellent

Very High

 

Conclusion

As a borrower, you must have come across to questions such as - how to raise credit score 100 points in 30 days and how to raise credit score 50 points in 30 days. By following the above-mentioned factors, you may improve credit score in quick time. However, it is advisable that you should have good financial habits to ensure that there is a long-term positive impact on your finances and your credit score. Having a good credit score represents that you are a responsible borrower, and you pay all your bills on time. Keeping a short-term goal will not help you in building a good credit history. Lenders like Poonawalla Fincorp provide easy loans to borrowers with good credit scores. It offers various loans catering to various financial requirements of the borrower including Personal Loan, Business Loan, Professional Loan, Pre-owned car Loan, etc.   

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply

poonawalla fincorp team

Poonawalla Fincorp Team

We are a team of expert writers and editors passionate about providing our readers with authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.

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