Do you want to increase your credit score but don't know how? It is common to have this question in mind how to increase my credit score to 900? I am one of those people who had the same question at one time and then I did what you are doing, that is research but unfortunately, I couldn't find quite the information.
But you have nothing to worry about you reached a perfect place where you will get to know by the end of the article how you can increase your credit score to 900 and you know what, there are many things too in the article that are waiting for you, so without any further Ado let us get started quickly.
What is Cibil Score?
Okay! So let us have a quick recap on what a civil score actually is. CIBIL score refers to the credit score generated by the Credit Information Bureau (India) Limited (CIBIL), which is one of the leading credit bureaus in India. A credit score is a numerical representation of an individual's creditworthiness, indicating their credit history and repayment behavior.
CIBIL collects credit-related information from banks and financial institutions and uses that data to calculate credit scores for individuals. The score ranges from 300 to 900, with a higher score indicating a more favorable credit profile. Lenders use CIBIL scores to assess the creditworthiness of borrowers before approving loans or credit facilities.
Still, have doubts about understanding what a civil score is? Let us take a quick review of the factors that affect civil score it will help you more to understand the civil score.
Factors that Influence Credit Score
There are factors that influence your cibil score, well do read it carefully so that you can increase your credit score to 900, want to do that? right. Let's read it quickly.
1. Payment History
This is the most important factor that can affect your credit score. Even if you missed just one payment that could be quite bad for your credit score Lenders want to be sure that you will pay back your debt, and on time when they are considering you for new credit. I would suggest you do not miss any payments so that you can increase your credit score to 900.
2. Credit history length
Credit history length is also important. This is again a factor that can affect your credit score. How long you've held credit accounts makes up 15% of your FICO® Score. This includes the age of your oldest credit account, the age of your newest credit account, and the average age of all your accounts. Generally, the longer your credit history, the higher your credit scores.
3. Amounts owed
The owed amount, also known as credit utilization, can have a significant impact on your credit score. Credit utilization refers to the amount of credit you are currently using compared to the total credit available to you. It is expressed as a percentage. High credit utilization can negatively affect your credit score, while low credit utilization can have a positive impact. So we would suggest you maintain low credit utilization for the positive impact on your credit score and so that you can increase your credit score to 900.
4. Credit Mix
Credit mix refers to the variety of credit types you have in your credit history, such as credit cards, loans, mortgages, and retail accounts. It is one of the factors that impact your credit score. A healthy credit mix can positively influence your credit score by demonstrating your ability to manage different types of credit responsibly. Lenders prefer to see a diverse credit portfolio, as it indicates a lower level of risk. However, credit mix is just one component of your credit score, so it's essential to maintain timely payments, low credit utilization, and positive credit history to achieve a high credit score.
5. New Credit
Yes, This also affects your credit score. The number of recent credit accounts that your opened can affect your credit score. If there are many new credit accounts and many inquiries that can indicate increased risk and also give a negative impact on your credit score.
Types of Accounts That Impact Credit Scores
When it comes to credit scores, there are various types of accounts that can have an impact. Two common types of accounts that can affect credit scores are installment credit and revolving credit. Let us quickly read about them both.
1. Installment Credit
This type of credit refers to that credit when you borrow some particular amount of money and you agree to repay it in a fixed monthly deposit and in a fixed time. Timely payments on installment accounts can have a positive impact on your credit score, as they demonstrate your ability to manage and repay borrowed funds responsibly.
2. Revolving Credit
Revolving credit refers to a credit arrangement where you are given a maximum credit limit, and you can borrow from that limit as needed. Unlike installment credit, the repayment terms for revolving credit accounts are flexible, and you have the option to pay the minimum payment due or the entire balance. Examples of revolving credit accounts include credit cards and lines of credit. Your credit score can be influenced by factors such as your credit utilization ratio (the amount of credit you're using compared to your total credit limit) and your payment history on revolving accounts. Maintaining low credit card balances and making timely payments can positively impact your credit score.
What Can Hurt Your Credit Scores
So we previously discussed all the factors that can affect your credit score in a good or bad way, but let us give our attention to those factors as well that can hurt your credit score. It is also important for you to know so you can prevent those causes and stop to hurt your credit score.
1. Missing payment
We did discuss before that missing payments can hurt your credit score, It is important for you not to miss any payments and stop your credit score to get hurt so that you can increase your credit score to 900.
2. Using too much available credit
High credit utilization can be a red flag to creditors that you're too dependent on credit. Credit utilization is calculated by dividing the total amount of revolving credit you are currently using by the total of all your credit limits. We would suggest you keep this in mind and stop yourself to hurt your credit score.
3. Applying for a lot of credit in a short time
So, yes this can be a reason too for getting hurt your credit score if you apply for a lot of credit in a short period of time. Lenders look at the number of hard inquiries to gauge how much new credit you are requesting. Too many inquiries in a short period of time can signal that you are in a dire financial situation or you are being denied new credit, so try not to apply for a lot of credit in a short period of time if you don't want to see your credit score hurt.
4. Defaulting on accounts
The types of negative account information that can show up on your credit report include foreclosure, bankruptcy, repossession, charge-offs, and settled accounts. Each of these can severely hurt your credit for years, even up to a decade.
How to Check Your CIBIL Score
To check your CIBIL score, there are several ways you can do it. Let's explore two popular methods: using Paisabazaar and OneScore.
1. Paisabazaar
Paisabazaar is a financial marketplace that offers a range of services, including checking your credit score. Here's how you can check your CIBIL score using Paisabazaar:
- Visit the Paisabazaar website or download the Paisabazaar mobile app from the App Store or Google Play Store.
- Sign up or log in to your Paisabazaar account.
- Navigate to the credit score section or search for "Check CIBIL score."
- Provide the necessary details, such as your name, date of birth, and PAN card number (Remember you need to provide your PAN Card number to fetch your CIBIL information).
- Verify your identity through the verification process specified by Paisabazaar, which may include answering security questions or providing additional documents if required.
- Once your identity is verified, you will be able to view your CIBIL score and credit report.
2. OneScore
OneScore is another platform that allows you to check your credit score and access personalized financial recommendations. Here's how you can check your CIBIL score using OneScore:
- Visit the OneScore website or download the OneScore mobile app from the App Store or Google Play Store.
- Sign up or log in to your OneScore account.
- Provide the required information, including your name, mobile number, and email address.
- Authenticate your identity by providing the necessary documents or completing the verification process specified by OneScore.
- Once your identity is verified, you will be able to view your CIBIL score and credit report, along with personalized insights and tips to improve your credit health.
There are several other platforms to check your CIBIL score but always remember to use trusted and reputable platforms when checking your CIBIL score to ensure the security of your personal information.
How Can I Increase My Credit Score to 900
So the reason why you were searching the internet is here. there are many ways that can help you to increase your credit score to 900 and here we are gonna discuss every single of them. Let's just dig deep into all the reasons that can help you increase your credit score to 900.
1. Set Reminders or Standing Instructions to Repay on Time
We saw that the missing payment can hurt your credit score and I know you don't want that to happen even though you should not let that happen. It could turn out to be a really big mistake if you miss out on your debts and payments. If by any chance you miss any payment then not only do you have to pay penalties but also your credit score will decrease. The best way to miss out on payment is if you set reminders on your payments and debt so that you won't miss them and your credit card score will not fall, which will help you to increase your credit score to 900.
2. Check for Errors in your CIBIL Report
Sometimes you can have everything right but still, you see your credit score falling, this can make you worry and that is really common, this could be because of any kind of errors in your cibil report. These errors may include incorrect personal information, wrong account details, mismatched overdue or paid-off amounts, duplicate accounts, incorrect Days Past Due or Collateral details, etc. For example, you have already paid your loan completely and have closed it from your side, but it is still appearing as current due because of an administrative error. Likewise, you will have to keep a check on other errors and suspicious activities. Resolve these errors by raising a CIBIL dispute resolution online at CIBIL’s official website and witness a gradual increase in your credit score.
3. Try Maintaining Healthy Credit Mix
This is a basic thing I guess everyone will suggest you maintain a healthy credit mix and guess what I am going to do the same I am also suggesting you try painting a healthy credit mix. If you have multiple unsecured loans then try prepaying them to maintain a balance between secured and unsecured loans. This will help you to increase your credit score to 900 and also help for not falling your credit score.
4. Clean all Credit Cards
It is important for you to clean all your credit cards so that you can increase your credit score. Make sure there is no numeric attached to the Days Past Due (DPD) in your CIBIL report. If you really want to increase your credit score and want to stop your credit score from falling then this is a way you can adapt to do so.
5. Avoid being a Co-applicant or Guarantor
If you really want to increase your credit score and stop your credit score from falling then this is also the best way you can do it. You should avoid being a co-applicant or a guarantor if you really want your credit score to increase up to 900.
6. Avail Secured Credit Card
It is also important for you to get a secured credit card for a good credit score. If you get your credit card from leading banks like Axis Bank, SBi, etc against a fixed deposit and repay the balance on the due date, your CIBIL score will rise. and you will see an increasing credit card score and that's what you want right? So, It is important for you to avail a secured credit card.
7. Avoid Multiple Loan Applications
Again this is also a great way to increase your credit score to 900. It is good for you too if you pay the old debt before taking another loan, it will build trust toward you and your credit score will stop falling and it will increase instead. I would suggest you take only one load at one time and pay it before even taking another one.
8. Reduce your Credit Utilization Ratio
One of the ways to improve your credit score is to not utilize your credit card to its extreme limit. It is advised to keep the CUR low, preferably within the 30% mark. Let’s say, if your credit limit is Rs. 1,00,000 a month, you should try not to exceed the expenditure of Rs. 30,000 per month. Keeping the credit utilization ratio in the range of 30% or below may not impact your credit score but if you frequently max out your credit card or maintain a high CUR (90-100%), your credit score may drop.
9. Choose Longer Repayment Tenure
Yes, You might be thinking how can this will help increase my credit score but it is true. It is also a way you can increase your credit score to 900. When you take a loan you should go for longer repayment tenure. This way your EMI will be quite low and it will not be a burden on you and your pocket it will be easy for you to make payments and obviously if you make payments on time this will be good for your credit score. As a result, it will stop falling but it will increase instead.
10. Try to increase your Credit Limit
I guess every person who is having credit card knows and should know that the more the limit is, it will be best for you. You should ask your bank if they can increase your credit card limit and if they ask you you should never say no to them. More limit doesn't mean more expenses but it means being smart and managing all your expenses. The simple trick is to have a lot more credit and keep your utilization low to leave a positive impact on your score. So, go and try to increase your credit card limit if you want your credit card to increase and score 900.
Why Your Credit Score is Important
Okay! So after reading out the ways that how can you increase your credit score to 900. It is really common if you think why even my credit score is so important. Dont worry I will answer this question for you. Just keep reading. Let's see all the reasons why your credit score is so important.
1. Loan Approvals
Lenders, such as banks or credit card companies, use your credit score to assess your creditworthiness when you apply for loans, credit cards, or mortgages. A higher credit score increases your chances of being approved and may qualify you for better interest rates and terms. Conversely, a low credit score may lead to loan denials or less favorable terms.
2. Interest Rates
Your credit card score also influences the interest rate you receive on loans. If you have a good score then you will get a lower interest rate and oppositely if your credit score is low then your interest rate will be higher. So It is important for anyone to maintain a good credit card score.
3. Utility Services
When you sign up for utilities such as electricity, gas, or internet services, providers may review your credit score. A low score could require a deposit or lead to more restrictive terms for obtaining these services.
4. Future Financial Goals
Building and maintaining a good credit score is crucial for your long-term financial goals. It can help you qualify for favorable terms when buying a car, securing a mortgage for your dream home, or obtaining a business loan. A solid credit history also facilitates access to credit in emergencies and demonstrates financial stability to potential lenders. So this is also a reason why a credit card score is really important for you.
5. Rental Applications
Landlords and property management companies often check credit scores during the rental application process. A good credit score demonstrates financial responsibility and may improve your chances of securing a desirable rental property. Yes, it might be a shocker for you but it is true so it would be important in any case to maintain your credit score.
Frequently Asked Questions (FAQs)
So, there are many questions other than those that we have covered till now, and we think that it is important to answer those questions as well, so here are those questions and we tried to answer them all.
Q1. Which one is the best way to increase my credit score to 900?
Well, we discussed each and every way that can help you to increase your credit score to 900 and also we discussed many other things as well that you should know after having a credit card. If we talk about the best way then I don't think there is any one way that can help you increase your credit score to 900. It will take effort if you really want to increase your credit score and the ways we discussed in the article are those efforts. So I would suggest you follow them if you really want your credit card score to increase.
Q2. How can I improve my credit score?
Okay, so as we discussed in the article there are many ways that can help you to increase your credit score let's just recap some of the ways again. Set Reminders or Standing Instructions to Repay on Time, clean all your credit cards, avail of secured credit cards, Avoid Multiple Loan Applications, try to increase your credit card limit, and so on. You can follow these ways if you really want your credit score to increase up to 900.
Q3. Can my credit score really be improved?
well, that's a really common question that does all the ways really work, can my credit score really be improved so let me tell you that it is totally possible, I am saying from my very own personal experience that all the ways that we mentioned in the article are effective and will help you for sure to improve your credit score to 900. so yes your credit card score can really be improved.
Wrapping Up!
So, You are finally here, having a credit card could be cool and fun but it is a headache to maintain your credit card score and if it keeps falling it is hard to increase that again but hey! Not impossible though, you just need the right guidance and the right ways through which you can increase your credit score to 900. That is why we wrote this article for the people just like you.
We mentioned all the possible ways through which you can increase your credit score and along with that we discussed many things that you know after owning a credit card. so I hope this article could be a little helpful for you and that you got what you were looking at at the start of the article.
Now we are happy to see you at the end of the article, I hope you got all the answers that you were looking for at the beginning of the article. We tried our best to answer all your questions with the most simplified answers but still, if you have any doubts regarding our article feel free to ask questions in the comment box. We will try to reach you as soon as possible. Do share this article with your friends and family, especially with those who want to increase their credit score that would be a great help to them.
