Credit score is a statistical reflection of credit behavior over the years and credit history starts from the first loan or card you had till the current times. So one action does not make or break the score but each action related to debt does contribute to the ultimate score, some contributing more than others. So paying regularly or missing payments is more important than loan enquiries as repayment history contributes 35% to the score calculation. If you have multiple loans running concurrently then the importance of each EMI would be less than what it would be if there was only a single loan running. It is also important to remember recent events are more important than the older ones.
So whether it is possible or not to improve your score by 50 points will depend on a host of factors specific to a person’s credit report and various inclusions in it.
Ways to Improve Credit Score in a Month:
Before figuring out the best way to improve CIBIL score it is important to get your CIBIL report and go through it in detail and understand what the improvement areas are. The two quickest ways to improve your credit score are; removing any old dues and disputing any errors.
When going through your credit report you may realize that the score is low not because of something you did but due to an error caused by somebody else. So there might be times when the cause of a low score might be inaccurate reporting by a lender of a missed payment or including a loan in your report that does not belong to you. Sometimes these errors can happen at the level of the credit rating agency too. Thus as soon as you spot the error you need to get in touch with the rating agency and follow the dispute resolution process laid down by them. It takes usually a month to get any dispute resolved and getting the erroneous item removed from the report could boost your score immediately.
Another quick way to improve the score is to settle old issues that may be there in your report. Unpaid dues on a credit card that have been piling up, a loan that has been paid in full but the NOC has not been taken, a disputed loan on your report are sure to cause it to fall down. Getting the NOC or paying of a disputed amount are quick ways for a bad credit fix. When paying old dues ensure that the account is reported as “paid” and not settled. However once you do that make sure to get your credit report after that to see if the same has been updated in the report.
A Few More Ways That Can Help:
While the two ways mentioned above can help you up your score quickly there are a few other ways also that can come to your rescue, maybe not so quickly but they will definitely have a positive impact on the credit score over time:
- Keep the credit utilization under 35%. After repayment history this is the most important factor that influences credit score calculation. So keeping the credit card spending less than 35% of the sanctioned card/s limit can help to a great extent.
- You could get your credit limit enhanced if you are eligible for it and your credit card spending is more than 35% of the sanctioned limit but you do manage to pay on time.
- Avoid making any loan inquiries when you are trying to improve your score in a hurry.
- Also do continue to pay all your dues on time and do not miss any payments, as repayment history is very important for any credit score.
So to sum it up it may be possible to increase you score by 50 points in a month depending on various factors, however it is always best to remember that credit rating is a long term process and one must follow the basic guidelines to remain credit healthy.