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How to get a better loan deal with the CIBIL?

Submitted by admin on December 18th, 2025

A credit score is among the most significant aspects that will affect your finances in India. Banks and credit card companies (regardless of whether you are seeking a personal loan, home loan, car loan or credit card) will look so much at your credit score-particularly your CIBIL score to determine your credit worthiness.

What Is a Credit Score?

A credit score is a number that is three digits and that it is between 300 and 900 indicating your credit behavior. It is determined by your history of repayment, the amount you owe, your usage of credit, your credit history, credit mix and your recent credit searches. A score that is above 750 is normally thought to be excellent and will increase your chances of getting a loan.

The Importance of the CIBIL Score

The most acceptable credit rating in India is the CIBIL score. It is used by lenders to decide whether you are a good borrower and the rate at which to lend to you. A score of 5 or greater is a good sign of good credit management whereas a score of 5 or less portrays a high amount of risk, which results in rejection of the loan or at the expense of interest rates.

The Main Things that influence your credit score

Making EMIs and credit card bill payments on time is the most influential on your score. It can be greatly reduced by missed or late payments. Using a big proportion of the available credit limit- high credit utilization- also has a negative impact on your score. Multiple hard inquiries occur in case of frequent loan or credit card applications, and this reduces your score. It is better to keep a good balance between secured and unsecured credit.

Improving the CIBIL Score of Beginners

First, make all the payments on time, no exceptions. Use no more than 30 percent of your total credit limit. Do not apply to take out several loans or credit cards at the same time. Always monitor your credit report to ensure that there are no mistakes or wrong information in it and have them rectified. And in case you are new to credit, the best place to start is by having a secured credit card or small loan and repaying it on time so that you can have an excellent credit history.

The Time to Raise a Credit Score

It is not an easy task to improve a credit score. As long as you pay with discipline and use responsibly, within six to twelve months, it can be observed that the difference is made. There are severe defaults or settlements that can be difficult to recuperate.

Conclusion

Good CIBIL score is a long term financial asset. With proper knowledge of credit scores and by having healthy credit habits, newcomers will be able to negotiate improved loan conditions, reduced interest rates and increased financial manoeuvrability in future.