Credit Score · India
If a bank has ever rejected your loan application without a clear reason, your CIBIL score was probably the reason. In India, a score above 750 opens doors to the lowest interest rates, while anything under 650 gets your file pushed to the bottom of the pile. The good news? A score is not a life sentence. It responds to your behaviour, and six months of disciplined habits can move it more than most people expect.
First, know where you stand
Before fixing anything, get your actual score. CIBIL gives one free report every year at cibil.com, and apps like Paisabazaar show a free monthly score. Download the full report, not just the number. Look line by line for loans you have closed but that still show as active, wrong outstanding amounts, or accounts you never opened. Errors are more common than you would think, and disputing them through the bureau portal is free.
Months 1-2: Stop the bleeding
Set up auto-pay for every EMI and credit card bill, even if it only covers the minimum due. Payment history is the single largest factor in your score, and one missed payment can undo a year of good behaviour.
- Bring credit card utilisation below 30% of your limit. If your limit is Rs 1 lakh, keep the outstanding under Rs 30,000.
- Do not apply for any new loan or card during this period. Every application triggers a hard enquiry, and multiple enquiries in a short window make you look desperate for credit.
Months 3-4: Clean up the file
Raise disputes for every error you found in your report. Ask your card issuer for a credit limit increase but do not spend more; a higher limit automatically lowers your utilisation percentage. If you have a small personal loan and a card balance, clear the card first, because revolving credit hurts your score more than an instalment loan of the same size.
Months 5-6: Build positive history
If your history is thin, a secured credit card against a fixed deposit (SBI and Kotak both offer them) reports to CIBIL just like a regular card. Use it for one small purchase a month and pay in full. Keep your oldest card open even if you rarely use it, since the age of your accounts matters. By month six, most people following this plan see a meaningful jump, and scores above 750 typically unlock rates 2-4 percentage points cheaper on personal loans.
Explore more on CompareLyst:
- Compare lenders that accept lower credit scores (https://loan.comparelyst.com/#/filter/low-credit)
- See all personal loan options in India (https://loan.comparelyst.com/#/loans/india/personal)
- Check your credit score free (https://loan.comparelyst.com/#/page/credit-score)
Disclaimer: This article is general information, not financial advice. Interest rates and eligibility criteria are indicative and change frequently — always confirm current terms on the lender’s official website before applying.