How to Increase Your CIBIL Score from 500 to 750 in 60 Days (Step-by-Step Guide)
If your CIBIL score is sitting at 500, you’re likely facing rejections for personal loans, credit cards, or even home loans. But don’t worry—there is a clear, actionable path to boost it. In this guide, we’ll walk you through how to increase your CIBIL score from 500 to 750 in just 60 days—realistic, ethical, and fast.
Whether you’ve missed payments in the past, settled loans, or maxed out credit cards, this guide is your roadmap to a healthier credit life.
📌 What Is a CIBIL Score?
Your CIBIL score is a three-digit number ranging from 300 to 900 that represents your creditworthiness. It’s calculated by TransUnion CIBIL, one of India’s top credit bureaus.
A score above 750 is considered excellent and increases your chances of:
- Quick loan approvals
- Lower interest rates
- Higher credit limits
- Better financial reputation
❌ What Does a 500 CIBIL Score Mean?
A 500 CIBIL score is considered very poor. Here’s what it usually signals:
- Multiple missed EMI or credit card payments
- High credit utilization (using too much of your limit)
- Loan defaults or settlements
- Frequent hard inquiries
- Errors in credit reports
With a 500 score, getting approved for even a basic credit card is difficult.
🎯 Is It Possible to Improve from 500 to 750 in 60 Days?
Yes, with discipline and strategic actions, it’s possible. While credit improvement is gradual, you can see significant progress in 60 days, especially if you take care of specific red flags.
✅ Step-by-Step Guide to Improve Your CIBIL Score from 500 to 750
🔄 Step 1: Get Your Latest CIBIL Report
Before fixing anything, know exactly where you stand.
- Visit cibil.com
- Get your free credit report
- Analyze all accounts: loans, credit cards, payment history, defaults, and errors
Pro Tip: You can also check via Paytm, Paisabazaar, or Wishfin for free.
🧹 Step 2: Identify and Dispute Errors
Check your report for:
- Incorrect loan entries
- Duplicate accounts
- Wrong overdue amounts
- Paid accounts marked as unpaid
If you find any:
- Raise a dispute online at CIBIL’s official portal
- Upload proof (bank statements, NOC, etc.)
- CIBIL usually responds in 30 days
Even removing one inaccurate overdue can boost your score significantly.
💳 Step 3: Clear Small Overdue Balances
Even a small overdue (₹100–₹1,000) on credit cards or loans can damage your score.
- Check for outstanding dues
- Pay them off immediately
- Ask the lender to update the status as “closed” or “paid in full”
Note: Settling an account may still hurt your score. Prefer full payment.
📈 Step 4: Reduce Credit Utilization Ratio (CUR)
Your CUR is the percentage of your credit limit you’re using. For example:
- Credit limit: ₹1,00,000
- Current usage: ₹90,000
- CUR = 90% (Very bad)
Aim to bring this below 30%. How?
- Pay down existing balances
- Increase your credit limit (if eligible)
- Stop using cards until usage is below 30%
⏰ Step 5: Make All EMI Payments on Time
Payment history contributes to 35% of your CIBIL score.
- Set up auto-debit for EMIs and credit card payments
- Pay the full amount (not minimum due)
- If short on funds, prioritize high-interest accounts first
💼 Step 6: Avoid Applying for New Credit Temporarily
Every time you apply for a loan or credit card, a hard inquiry is generated.
- Too many inquiries = Credit hungry behavior = Lower score
- Avoid new applications during your 60-day recovery period
Exception: Apply for a secured credit card if you don’t already have any credit accounts.
💳 Step 7: Get a Secured Credit Card
If you’ve been denied a regular credit card, go for a secured card (backed by an FD).
Top options in India:
- SBI SimplySAVE Secured Card
- Axis Bank Insta Easy Card
- ICICI Bank Coral Secured Card
Use this card:
- For small purchases
- Pay in full every month
- Keep CUR below 30%
📊 Step 8: Maintain a Healthy Mix of Credit
Credit mix counts for about 10% of your score.
Ideal mix:
- One secured card
- One active loan (car/personal/home)
If you only have credit cards, a small consumer durable loan or BNPL product can help diversify your profile.
🔁 Step 9: Continue This Routine for 60 Days
Improving your score is not a one-time fix—it’s about consistency.
Every 30 days:
- Lenders report updated data to CIBIL
- Your credit score gets recalculated
So:
- Pay dues on time
- Keep CUR low
- Avoid new credit
- Dispute any new errors
You’ll start seeing improvements within 30–45 days if you’re consistent.
📅 Week-by-Week 60-Day Plan
| Week | Action Item |
|---|---|
| 1 | Get report, find errors, dispute, clear small dues |
| 2 | Reduce CUR, stop new credit usage |
| 3 | Apply for secured card (if needed), pay bills on time |
| 4 | Pay EMIs early, follow up on disputes |
| 5 | Check updated report, continue payment discipline |
| 6 | No new inquiries, re-check CUR, continue card usage wisely |
🚫 What NOT to Do During These 60 Days
- Don’t close old credit accounts (they help build history)
- Don’t make only minimum payments
- Don’t miss due dates
- Don’t apply for multiple loans or cards
- Don’t ignore small overdues
📢 Real-Life Example: From 505 to 765 in 2 Months
Ravi, a 28-year-old from Pune, had a score of 505 due to a settled personal loan and late credit card payments.
Here’s what he did:
- Disputed a wrong ₹10,000 overdue loan entry
- Paid off ₹2,000 pending on a closed card
- Got an SBI secured card, used it for fuel and groceries
- Paid full dues weekly
- After 60 days → New score: 765
Your story can be next.
🧰 Tools to Help You Track and Grow
- CIBIL Portal: cibil.com
- Paytm: Free CIBIL check, payment reminders
- Bajaj Finserv: Offers CIBIL tracker
- Banking apps: ICICI, HDFC, Axis show your score
🙋 FAQs
✅ How often does CIBIL update your score?
Every 30 days based on lender reports.
✅ Is paying the minimum due enough?
No. Always pay full dues to improve your score fast.
✅ Can a loan settlement be removed?
Yes, if you pay the full amount later and request status change.
✅ Can I increase my score without a credit card?
Yes, but credit cards help accelerate improvement if used wisely.
🏁 Final Thoughts
Going from a 500 to 750 CIBIL score in 60 days isn’t a dream—it’s a disciplined journey. With focused actions, financial hygiene, and a bit of patience, you can unlock better loan offers, credit card approvals, and financial freedom.
Start today. Your future self will thank you.
🔍 Top 20 FAQs for CIBIL Score Improvement Blog
- How long does it take to increase CIBIL score from 500 to 750?
It usually takes 60 to 90 days with consistent financial discipline, such as timely payments and low credit usage. - Is it really possible to improve CIBIL score by 250 points in 60 days?
Yes, if you clear outstanding dues, dispute errors, reduce credit utilization, and use a secured credit card wisely. - Can I improve my CIBIL score without taking a loan?
Yes, you can use a secured credit card, pay bills on time, and reduce credit card balances to improve your score. - How much can paying off a credit card boost my CIBIL score?
Paying off high credit card balances can improve your score by 50 to 100 points or more, depending on your credit history. - Will clearing all loans instantly improve my CIBIL score?
Clearing loans helps, but consistent timely payments and a good credit mix also play a big role in improvement. - What is the fastest way to increase my CIBIL score from 500?
The fastest way is to pay off overdue debts, lower your credit utilization ratio, and avoid applying for new credit temporarily. - How do I check my CIBIL score for free in India?
You can check your CIBIL score for free on cibil.com, Paytm, Paisabazaar, Wishfin, and many banking apps. - Does using a secured credit card improve CIBIL score?
Yes, if used responsibly with timely payments and low usage, secured cards can boost your credit score quickly. - How many points can I improve in 1 month?
Depending on your profile, a score increase of 50–100 points in one month is possible with aggressive fixes. - What credit utilization ratio is best for CIBIL score?
A credit utilization ratio of below 30% is ideal to maintain or improve your CIBIL score. - Will disputing errors in CIBIL report really help?
Yes, correcting inaccurate or outdated entries can significantly improve your score, especially if they involve overdue or defaulted accounts. - Is loan settlement bad for CIBIL score?
Yes, a “settled” status is considered negative and can drop your score. Try to convert it to “paid in full” if possible. - How often does CIBIL update scores?
CIBIL updates scores every 30 days based on new data reported by banks and NBFCs. - Can I get a loan with a 500 CIBIL score?
It’s very difficult. You may only qualify for high-interest loans or secured loans with collateral. - Does having multiple credit cards hurt my CIBIL score?
Not if you use them responsibly. In fact, having multiple cards can improve your credit mix and utilization if managed well. - Will increasing my credit limit help improve my CIBIL score?
Yes, increasing your limit and keeping your spending low lowers the credit utilization ratio, improving your score. - Is it okay to close old credit cards with zero balance?
No, closing old cards may hurt your score as it shortens your credit history and reduces total credit available. - What documents are needed to dispute a CIBIL error?
You may need a loan closure letter, NOC, bank statement, or any proof that supports your claim. - How can I remove loan settlement from my CIBIL report?
You can negotiate with your lender to pay the remaining balance and request an update to “paid in full” status. - Does paying minimum amount due help improve CIBIL score?
No, you should always pay the full amount due to avoid interest charges and negative impact on your score.