Credit score below 650? Try THESE smart strategies to improve it

Several individuals in the country find themselves held back by a credit score of around 620. This is a score band which is often labelled as ‘low’ by financial institutions.

While loan approval might still be possible, it usually comes with steep interest rates, unwanted delays, cross questions and limited options. However, financial experts believe that with the right strategy, this score can be improved.

Vikkas Goyal, founder of Rupee112, says, “A low credit score isn’t permanent. Build it up by managing credit responsibly, pay dues on time, avoid maxing out cards and limiting new loan applications. Small changes in your financial habits can lead to better credit scores over time.”

Why does a 620 score hold you back?

Any credit score between 551 and 620 is generally considered low, this means loans, especially unsecured personal loans are offered at higher interest rates or may even be rejected.

Moreover, new RBI guidelines now require lenders to update credit records every fortnight thus making both positive and negative behaviours reflected much faster within 15 to 20 days.

Timely payments are non‑negotiable

Your payment history has the greatest impact on your score. It has always been highlighted by professionals that consistently paying EMIs and credit card bills on time, ideally through auto debit, is critical. Even small delays are reported faster than before, that is why late payments are visible to lenders quickly due to bi‑monthly reporting.

Slash credit utilisation and mix your credit

Focus on keeping credit utilisation below 30 % to signal responsible borrowing. Also, a mix of secured (e.g., home or auto) and unsecured credit boosts your profile. Avoid opening multiple loans or credit cards in a short time, as each application triggers a hard inquiry that can knock 5–10 points off your score.

Monitor, dispute and repeat

Hence, regularly checking your credit report now available free via RBI mandated updates, helps you spot errors or unauthorised entries promptly. Disputes can be resolved in 30 days, and new systems incentivise fast resolution.

How to improve a 620 credit score fast?

You can improve your credit score rapidly by inculcating the following practices in your day to day life:

1. Always pay dues on time, set auto‑debit.
2. Keep the credit utilisation ratio under 30 %.
3. Maintain a healthy credit mix, and avoid multiple hard pulls i.e., inquiries.
4. Review reports regularly and dispute errors fast.
5. Don’t close old credit accounts, a longer credit history supports a stronger score.

By following these steps, a 620 score can breach the 650–700 ‘fair’ threshold within months. Thus opening doors to better loan terms, gates to premium credit cards and interest rates.

Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit scores. Mint does not promote or encourage taking credit, as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.