Lenders in India rely on your CIBIL score, a three digit number between 300 and 900, to decide whether to lend and at what rate. Above 750 you get the best offers. Between 650 and 750 you will be approved but may pay more. Below 650, options narrow to a few NBFCs.
What moves the score
- Payment history (largest weight). One EMI or card payment more than 30 days late stays on the report for years.
- Credit utilisation. Using more than 40 percent of your card limits every month signals stress.
- Enquiries. Every loan application is recorded. Six enquiries in three months looks desperate.
- Mix and age. A long history with both secured (home, car) and unsecured (card, personal) credit helps.
- Settled accounts. A loan closed for less than the full amount is marked "settled" and hurts badly.
- Errors. Loans you never took, wrong dates, duplicate accounts. These are more common than people think.
Fix in this order
- Pull your free report from cibil.com and check every line.
- Raise a dispute for any error. Corrections take 30 days.
- Clear any overdue amount and collect the no dues letter.
- Bring card balances under 30 percent of limit before the statement date.
- Stop applying anywhere for three to six months.
If your score is below 650, ask us before applying. We know which partners lend at that level and we avoid adding rejections to your file.
Have a question about your own case? Talk to us, the consultation is free.