Getting a personal loan with a 713 CIBIL score: What you need to know

All the credit card bills and debts you clear contribute to building your credit score. Maintaining a decent repayment history puts you up there. But how much of the CIBIL rating is good enough? If your CIBIL score sits at 713, you can rest assured that you are in a good CIBIL score range. Read ahead to learn more about how this CIBIL score fares in personal loan approvals and if there is any scope for improvement.  

What does a 713 CIBIL score represent?
 

A CIBIL score of 713 places you in a good range. It is a sign that you have been managing your credit well. The takeaway for lenders is that you are a responsible borrower who usually repays dues on time and keeps the credit usage in check. That said, there is room to grow and reach the best CIBIL score for a loan: 750 and above.

Here’s what you can expect with a good CIBIL score of 713:

· Strong credit reputation: You are seen as a reliable borrower due to your good record of creditworthiness. Lenders consider you as a low-risk applicant for new credit.

· Access to better loan offers: Many banks and financial institutions, including IDFC FIRST Bank, offer loans at favourable terms to 710+ CIBIL scores.

· Competitive interest rates: You are eligible for competitive interest rates, and you have decent negotiating power with the lenders. However, applicants with highest CIBIL scores, say within the range of 750-900, may enjoy better terms.

· Scope for increasing CIBIL score: Your CIBIL score is close to the top tier, which is above 750. With a consistent repayment record and continued efforts at maintaining a good credit utilisation ratio, you can move closer to the best CIBIL rating.

Minimum CIBIL score required for personal loans in India
 

Most lenders expect a minimum CIBIL score for a personal loan of around 700. This score indicates you have a decent credit history and earns the confidence of lenders in your repayment ability. With this score and a stable income, you can expect loan approvals with decent interest rates. So, with 713, you are exceeding the minimum requirement and in a good position.

How to improve your CIBIL score before applying for a personal loan?
 

Even if you are meeting the minimum range with a credit score of 713, there’s always value in aiming for higher. A stronger CIBIL rating will boost your chances of approval and help you secure better loan terms like preferential interest rates, higher negotiation power for lower EMIs, and longer tenures. Plus, it’s not as complicated as you might think. Small, consistent actions pull you closer to the best CIBIL score for a loan: above 750, going up to 900.

Here are practical tips to improve your CIBIL score and boost your personal loan eligibility:

· Manage credit usage

It’s in your best interest to keep your credit utilisation below 30%. When you use too much of your available limit, whether in credit cards or loans, you show your over-dependence on credit to lenders. You want to always use credit moderately and responsibly. The key is to maintain financial discipline within your limits.

· Diversify your credit mix

Some credit options are more comfortable than others but relying on only one option doesn’t give lenders a good analysis of your creditworthiness. A healthy mix of secured loans like home or car loans, credit cards and unsecured loans like personal loans is ideal. It shows that you can manage different forms of debt responsibly.

· Submit loan applications consciously

Each loan application creates a hard inquiry on your credit report. This can impact your credit score, albeit slightly, but it still makes a difference. Rather than simultaneously applying with multiple lenders to increase your chances of approval, it is wise to only apply when you are sure of the loan terms and your eligibility.

· Monitor your credit report

Your CIBIL score may also suffer sometimes without any mistake of your own. Errors or outdated entries in your credit report can unfairly impact your score. Hence, it helps to regularly check your CIBIL report to spot such errors promptly. You can then dispute them with the respective credit bureau and maintain accuracy to protect your good CIBIL score.

· Don’t close old credit accounts

Older credit accounts, where you have had a good record of repayment behaviour, contribute to your credit history. They add to the age of your credit record, which lenders value highly. Closing them too soon shortens your credit age, which impacts your credit score. So, keep such long-standing accounts active to signal financial stability.

· Pay on time with auto-payments

Missed EMI payments signal a lack of financial discipline. They are a major contributor in a low credit score. If you want to stay on top of your EMIs and never miss paying your dues on time, set up auto-payments. With these in place, you never have to stress over consistently clearing your EMIs and credit card bills.

· Borrow according to your affordability

Naturally, more funds seem like a good option to be on the safer side. It makes for a good buffer whether you are borrowing for personal needs, buying a house, or a car. But borrowing more than you need unnecessarily stretches your finances and hurts your repayment consistency. You want to assess your monthly income, existing obligations, and lifestyle before committing. This way, you can preserve your good CIBIL score and boost it easily by clearing your dues with ease.  

Final Words
 

As the CIBIL score of 713 reflects a consistent financial discipline and responsible borrowing habits, it is safe to say that it is enough to get a personal loan. That said, you can aim higher to fit the best CIBIL score range: 750-900. This puts you in a favourable position for negotiating low interest rates, better terms, and longer loan tenures. You can get there by evaluating your current credit habits and taking mindful steps to improve.

If you are looking to apply for a personal loan with your current score of 713, IDFC FIRST Bank offers favourable terms like low interest rate starting at 9.99% interest rate and zero foreclosure charges.

Here’s how you can apply:

1. Click on ‘Apply now’ on this page
2. Register using your basic details
3. Choose your loan preferences
4. Link your bank account where you wish the funds to be disbursed
5. Complete video KYC by displaying your PAN card