4 tips to master the Credit score game to be eligible for availing a personal loan that you desire!

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Your CIBIL Score is an important determinant of your personal loan application. The score helps lenders assess your credit worthiness based on which your loan application is approved or rejected. CIBIL Score in India is generated by TransUnion CIBIL, an RBI registered company which is among leading credit information companies in India. The credit bureau is responsible gathering and maintaining payment records of lakhs of loan and credit card holders. A high credit score represents strong repayment and credit behaviour whereas a low credit score indicates low credit worthiness. A low credit score can lead to rejection of your loan application or approval of the same at a high interest rate. Using a handy EMI calculator to help make things easy becomes important here.

What is considered as a good credit score?

A CIBIL Score ranges from 300-900 with 300 being the lowest and 900 the highest. Having a score above 800 makes you eligible to get personal loan at low interest rates. Majority of lenders in India consider the score of 750 to be an ideal score for getting a personal loan application approved. 

Here’s a breakdown of different score and what they mean:

Score of 0-1: The score is referred to as NA, meaning that the applicant has less than six months of credit history.

Score of 300-500: This is a poor credit score, exposing the lenders at a very high risk in offering you a personal loan. The score indicates late payment, loan and credit card defaults. 

Score of 550-650: This score represents a fairly decent credit behaviour. This score also indicates multiple credit inquires or late payment of credit card bills or EMIs. 

Score of 650-749: This score represents a responsible credit behaviour and makes you eligible to get a personal loan. The interest rate for applicants in this CIBIL Score range is likely to be high in comparison to the ones in the range of 750-900.

Score of 750-900: This score is considered to be an excellent one, determining that you haven’t defaulted on any loan payments. It represents that you have responsible credit behaviour and have no unpaid dues. Lenders are likely to offer you the loan at a low interest rate.

Tips to master the credit card game to be eligible to get a personal loan

Pay EMIs on time: Timely repayment of all your EMIs and credit card bills increases your chances of getting more credit in the future that further helps you improve your credit score. Remember that using a personal loan EMI calculator simplifies this process for you.

Avoid making multiple applications: If you think that by making multiple credit card and loan applications will help you increase your score, then you are highly mistaken. It is important to note that making multiple applications can hurt your score and every time you make an application; the lender generates your credit report and this inquiry is recorded by CIBIL. Making multiple applications represents credit hungry behaviour and rejection of the application can decrease your score.

Don’t keep on applying in case of rejection: If a lender has rejected your loan or credit card application, then it is advised that you immediately do not apply with another lender. This is because the information is recorded in your CIBIL Report. If you go and apply with another lender then the low score, rejection of the application by the previous lender can lead to immediate rejection by the existing lender you are applying with.

Clear credit card outstanding: One of the important moves you can make to improve your credit score is that you can clear off the outstanding credit card debt you hold. Clearing credit card dues on time helps you maintain a clear image in front of lenders that further helps you secure instant loans on credit card as well. Also, it is not considered a good idea to hold more than two or three credit cards.

Do not close your credit card: Even if you don’t use a specific credit card anymore, it is advisable not to close the card as doing so can hurt your credit score. Closing an old credit card is like deleting your old credit history that can dent your score.

Do not opt for loan settlements: Many a times, people opt for settling on loans and credit card debts by going to the lender or bank and opting to pay a low amount than the actual amount due. Though doing this would seem to the right thing to do in the scenario when you don’t have enough money in hand, but doing so can in fact hurt your score that can lead to rejection of your loan or credit card application in future.

Have a mixed bag of credit: ensure that you maintain a mixed bag of credit portfolio i.e. holding both secured and unsecured loans. Taking too many unsecured loans can hurt your score. Opting for secured loan like a home loan, car loan can help you increase your score.


Before applying for a personal loan, it is imperative that you use a personal loan EMI calculator to get an estimate of the EMI you have to pay. This personal loan emi calculator is easy to use and helps you plan your monthly budget effectively.

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