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Personal Loan

How to increase CIBIL score and unlock personal loan approval without the stress

Key Takeaways

Having a good CIBIL score improves chances of loan approval with better interest rates.
Pay bills on time, limit credit usage, avoid multiple loan applications, maintain a credit mix, and check reports for errors to steadily increase your score.
Checking your own score doesn’t hurt it, closing old credit cards may lower your score, and low scores don’t always mean rejection—other factors like income also matter.
IDFC FIRST Bank’s FIRSTmoney personal loan offers instant, paperless access to up to ₹15 lakh, flexible EMIs, no prepayment charges, and competitive interest, making it ideal for prudent borrowers.

01 Jul 2025 by Team FinFIRST

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Applying for a personal loan can feel stressful, especially when you're unsure if your credit score is good enough.

Perhaps you’ve recently checked your CIBIL score and wondered what the number actually means. Or perhaps you applied for a loan and were surprised when it wasn’t approved.

You’re not alone. People across India often face similar confusion. Whether it's a wedding, medical emergency, home renovation, or even a long-awaited trip, a personal loan can help manage large expenses. However, before applying, it’s essential to understand how your CIBIL score impacts your chances.

Here’s the good news: once you understand what makes a good CIBIL score and learn how to increase your CIBIL score, you’re in a much better position to borrow smartly and confidently.

Need cash fast? Get a quick loan without documents instantly

A complete guide to getting instant approval on digital personal loans

What is a CIBIL score, and why does it matter?

Your CIBIL score is a three-digit number ranging from 300 to 900. TransUnion CIBIL assigns it based on your credit history, i.e. how you’ve handled loans, credit cards, and repayments in the past.

Banks and lenders use this score to understand:

How trustworthy are you with money
If you’re likely to repay on time
What loan amount and low interest rate can they offer you

In short, your credit score gives them an idea of how risky or safe it is to lend to you. A higher score increases your chance of loan approval and getting better loan terms.

How to check your CIBIL score for free

Many people believe checking your credit score costs money or lowers your score. That’s a myth.

Here’s how you can do it easily and without affecting your score:

Go to www.cibil.com
Click “Get your free CIBIL score”
Sign up with your mobile number and email
Enter your PAN card and date of birth
Verify using OTP and view your score

You can check your score for free once a year. Several finance apps also offer free checks more frequently.

What is considered a good CIBIL score for a personal loan?

Here’s a simple table to help you understand where your score stands:

CIBIL score	Chances of loan approval	What you can expect
750 – 900	Very high	Fast approval, best interest rates
700 – 749	Good	Approval likely, standard rates
650 – 699	Moderate	May get approved, but with higher rates or lower amount
300 – 649	Low	High chance of rejection or stricter conditions

A score of 750+ is ideal. Even a score of 700–749 is usually acceptable if your income is steady and your repayment record is clean.

Below 700, your options may become limited, but knowing how to increase your CIBIL score can significantly boost your chances in the future.

Pro tip: IDFC FIRST Bank considers additional factors, such as income, job profile, and existing debt, when assessing applications. So, even if your score is not perfect, you may still qualify.

How to increase CIBIL score: Quick and long-term actions

Understanding how to increase your CIBIL score gives you a practical advantage when applying for a personal loan. Here are some actionable steps.

Quick actions you can take:

Pay EMIs and credit card bills on time:

Even one missed payment can reduce your score sharply.

Limit credit usage to 30–40% of your card limit:

For example, if your limit is ₹1,00,000, keep usage under ₹30,000–₹40,000.

Avoid applying for multiple loans or cards at the same time:

Each application triggers a hard check, which can reduce your score temporarily.

Long-term habits that help include:

Maintain a balanced credit mix:

A combination of secured (such as a home or auto loan) and unsecured credit (such as a personal loan or credit card) helps build a healthy profile.

Check your credit report for errors:

Incorrect entries or duplicate records can negatively impact your score. Raise disputes to fix them.

Keep your oldest credit card active:

A long credit history builds credibility. Closing old accounts can negatively impact your score.

By consistently following these steps, you’ll learn not only how to increase your CIBIL score but also how to maintain it in the long run.

Common myths about CIBIL scores explained

Let’s clarify a few misunderstandings that often confuse borrowers.

Myth 1: Checking my own score lowers it

Fact: This is not true. Personal checks are soft enquiries and have no impact on your score.

Myth 2: Closing unused credit cards helps improve the score

Fact: It can actually hurt your score by reducing your total credit limit and raising your utilisation ratio.

Myth 3: A low score means I’ll never get a loan

Fact: Not always. Lenders like IDFC FIRST Bank consider income, employer profile, and repayment habits in addition to your score.

Knowing how to increase your CIBIL score also helps debunk these myths and encourages better financial decisions.

FIRSTmoney: A smarter loan for a stronger credit score

If you've built a good credit score, it's time your loan options reflect it. IDFC FIRST Bank’s FIRSTmoney personal loan is designed for credit-savvy individuals who want fast access to funds, flexible terms, and full control over how they borrow.

1. Built for good credit profiles

Ideal for those with a CIBIL score of 710+
Considers your overall creditworthiness, not just your salary slip

2. Quick access, no paperwork

Get up to ₹15 lakh, disbursed in just 10 minutes
100% digital process—no documents, no branch visits

3. Flexibility that adapts to you

Choose your EMI due date and tenure (9 to 60 months)
Access multiple loans from a single approval; no need to reapply

4. Financial control, on your terms

Pay interest only on what you use, not your full approved limit
No foreclosure charges; repay early without penalties
Fixed interest rates on reducing balance for predictable EMIs
Competitive rates starting at 9.99% p.a.

With FIRSTmoney, you’re not just taking a loan—you’re unlocking the kind of borrowing experience your credit score deserves.

Final word

Your credit score is not a barrier—it’s a building block. Once you understand how to increase your CIBIL score, you’ll be better prepared to access the financial support you need, when you need it.

When you’re ready to take the next step, partner with a lender who values transparency and your financial journey. With IDFC FIRST Bank FIRSTmoney, you get convenience, flexibility, and a better borrowing experience—designed with you in mind.

Take the first step today. Understand your score, take control of it, and explore your options with FIRSTmoney.

Frequently Asked Questions

Can I get a personal loan with a score of 650?

Yes, but the interest rate may be higher, and the loan amount might be lower.

How long does it take to improve a score?

With the right financial behaviour, noticeable improvements can be seen in 3–6 months.

Will repaying a loan early help improve my credit score?

Yes—especially if you’ve paid on time. However, the loan should run long enough to build a positive credit history.

What if I have no credit history at all?

Start small with a credit card or consumer loan and use it responsibly. This will help you begin building your score.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.