You may be suffering from a poor credit score of 500 or below. In such a case it is paramount that you improve your credit score to 800 or above. There are manifold benefits accruing from improving your credit score from lower interest rates, higher limits, unlocking the potential for new loans and higher credit limits from your existing lenders.
While 67% people who check their credit score on BankBazaar had a score of 700+, only 36% of them had a score of 800+ – a score that would enable you to get the best rate on any credit product from most financial institutions,” according to Bankbazaar moneymood 2022 report. 36% of the 50 million users of the site, have credit scores of 800 or more, as per a report revealed by the company. Women are more conscious of their financial habits compared to men as over 72% women users hold a score of 700 or more, compared with 66% men. Remember that once you reach an 800-credit score, your struggle isn’t over. You must stay vigilant and work constantly to maintain it at that level.
SingleDebt is a financial advisory and debt management company which provides excellent advice on managing your credit scores and elevating them above 800 in a short period of time. With effective debt management strategies, SingleDebt can help you be on top of your outstanding debt management with prudent techniques which can help you improve your credit scores.
Credit scores are based on a triple digit score created by CIBIL, a credit rating and credit scoring agency. This ranges from 300 to 900.The ranking of CIBIL scores in India is as below. CIBIL stands for Credit Information Bureau India Limited.
CIBIL score range | Credit Risk Ranking |
300- 600 | Poor credit score |
600- 650 | Requires immediate action and monitoring |
650- 699 | Fair Score |
700- 749 | Good score |
750 and 799 | Excellent |
800 and above | Very low risk borrower |
A Paisabazaar story in 2023 showed that the following Indian metros and cities showed borrowers with the highest credit scores – Mumbai, Bangalore, Ahmedabad, Chennai, Pune, Delhi, Hyderabad, Surat and Coimbatore.
Some financial strategies to use for improving your credit score
Monitor your credit report regularly for your credit history, updation of outstanding loan balances, any inaccuracies etc., that need immediate attention. Dispute all inaccuracies immediately. You can do this easily on the credit bureaus websites. Credit bureaus operating in India include TransUnion CIBIL, Experian, Equifax and CRIF High Mark.
2. Maintain your credit utilization below 30%
This is the ratio of your outstanding debt to total debt limits available as per your credit limits. Pay off the installments as soon as possible. This will lower both interest as well as the outstanding loan amounts. Creating a prudent budget that streamlines your excess expenditure is a step in the right direction. If you are struggling with large outstanding debt balances, it is better to prune it into manageable amounts using Single Debt’s outstanding single EMI repayment – debt management plan strategy.
Examine all your outstanding loan payments and credit card bills and pay off anything that is overdue. Remember that late payments negatively impact your payment history. This is also an indicator that you are an irresponsible borrower without any financial discipline.
4. Late payments forgiveness
If you have a good relationship with your lender, you can ask for a goodwill adjustment partially or in full for late payments. You can also negotiate with them not to levy any penal interests.Ask your lenders to inform the credit bureaus so that your credit report may be revised to improve your credit score.
5. Increase your credit limit
Credit limits are normally set based on your monthly income, estimated monthly spending, and your living expenses. If your credit rating is favourable, sometimes credit card companies give an increase in your credit limit unasked if you are a long-time customer, otherwise you will have to call them and negotiate for an increase after providing the appropriate justifications for the increase.
6. Acquire an additional credit card
It is not always better to have only one credit card. If you acquire other credit cards, your credit utilization limit decreases, as your credit limit is increased. Remember, that you need not always use your additional credit limit. By not increasing your expenditures, you can achieve a lower credit utilization limit and a better credit score. This showcases the fact that you are a responsible spender and increases your access to funding.
7. Become an authorized user
Becoming an authorized user and getting a credit card under a family member with good credit scores. Ask your family members and friends if you can be added to their accounts. This helps to improve your credit score when they make timely payment of bills. If you are suffering from financial difficulties this will greatly help in improving your credit scores.
8. Replace high interest credit card loans by personal loans
Credit card rates in India vary between 2.5 % to 3.5% per month but 30-50% annually.
Interest rates on defaulting credit card payments on top credit cards in India are as follows:
Source: Paisabazaar.com
If you own multiple credit cards bearing high interest rates, you can switch to low interest- bearing personal loans. The lower interest rates will also enable you to pay off your credit card loans and improve your credit scores. This option is only sensible if interest rates on personal loans are competitive and terms beneficial.
If you monitor your credit levels proactively and implement all the measures mentioned above, you can rapidly increase your credit score to 800. At SingleDebt, we understand that achieving an 800 credit score is not just a dream—it’s a reality that can open doors to better financial opportunities, lower interest rates, and greater peace of mind. Through our tailored financial advisory services, we help you take targeted, strategic actions to rapidly improve your credit score. By analyzing your current credit report, addressing any negative marks, reducing your debt-to-income ratio, and offering personalized strategies to optimize your credit usage, we put you on a proven path to success.
With SingleDebt’s expertise and support, you’ll have a clear plan, actionable steps, and the accountability needed to transform your credit score and financial future.
Take the first step today. Contact us now for a free consultation, and let us show you how we can help you! Your financial freedom starts here.
SingleDebt specializes in effective debt management solutions, helping individuals and businesses reduce their debt and regain financial stability.
