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One of the most common reasons for falling CIBIL score below 750 is missing EMI or credit card payments.
Maintaining a healthy mix of secured loans, such as home or car loans, and unsecured loans, such as personal loans or credit cards, can also help build a stronger credit profile over time.
A good CIBIL score plays an important role in getting loans and credit cards. Whether you are planning to buy a home, a car, or simply apply for a personal loan, lenders often check your credit score before approving your application.
If your CIBIL score is below 750, it does not necessarily mean that you will not get a loan. However, you may face higher interest rates, lower loan amounts, or stricter approval conditions. The good news is that a low score can be improved over time by following healthy credit habits.
What is a CIBIL score?
A CIBIL score is a three-digit number ranging from 300 to 900 that reflects your creditworthiness. It is generated by TransUnion CIBIL based on your borrowing and repayment history.
In general, a score above 750 is considered good by most banks and financial institutions. A score above 800 is considered excellent and may help borrowers get better loan terms.
Why is your CIBIL score important?
Whenever you apply for a loan or a credit card, the lender checks your CIBIL score to understand how responsibly you have handled credit in the past. A higher score indicates that you have repaid your loans and credit card dues on time. A lower score suggests a higher lending risk, making lenders more cautious.
Your CIBIL score can influence loan approval, interest rates, credit card eligibility, loan amount and repayment tenure.
Why is your CIBIL score below 750?
There can be several reasons why your score has fallen below 750. One of the most common reasons is missing EMI or credit card payments. Even a few delayed payments can affect your score.
Using a large portion of your credit card limit is another major reason. For example, if your credit limit is Rs 1 lakh and you regularly spend Rs 90,000 every month, it indicates high credit dependence.
Applying for multiple loans or credit cards within a short period can also reduce your score because every application results in a hard inquiry by the lender.
Defaulting on a loan, settling a loan instead of repaying it in full, or having outstanding dues for a long period can significantly damage your credit score.
Errors in your credit report, such as incorrect loan information or payments wrongly marked as overdue, may also pull down your score.
How can you improve your CIBIL score?
Improving a credit score takes time, but consistent financial discipline can make a noticeable difference. The first step is to pay all your EMIs and credit card bills on time. Your repayment history is one of the biggest factors affecting your score.
Try to keep your credit card usage below 30% of your total credit limit. Lower utilisation shows that you are managing credit responsibly.
Avoid applying for several loans or credit cards at the same time unless absolutely necessary. Too many applications within a short period may negatively affect your score.
If you have existing loans, continue paying them regularly instead of closing them through settlements. A loan marked as “settled” can remain on your credit report and may affect future borrowing.
Review your CIBIL report regularly to identify any mistakes. If you find incorrect information, raise a dispute with the credit bureau so that the records can be corrected.
Maintaining a healthy mix of secured loans, such as home or car loans, and unsecured loans, such as personal loans or credit cards, can also help build a stronger credit profile over time.
How long does it take to improve a CIBIL score?
There is no fixed timeline. If your score has dropped due to a few missed payments or high credit card usage, you may see improvement within a few months after correcting these issues.
However, if the score has been affected by loan defaults or repeated payment delays, it may take a year or longer to recover. Consistency is the key, as lenders look at your long-term repayment behaviour.
Can you get a loan with a CIBIL score below 750?
Yes. Many banks and non-banking financial companies (NBFCs) provide loans to borrowers with scores below 750. However, the terms may not be as favourable.
You may have to pay a higher interest rate, provide additional documents, bring in a co-applicant or guarantor, or accept a lower loan amount. The exact decision depends not only on your credit score but also on your income, employment, existing liabilities and overall repayment capacity.
How often should you check your CIBIL score?
Checking your own CIBIL score does not reduce it. Experts generally recommend reviewing your credit report at least once every few months, or before applying for any major loan. Regular monitoring helps you detect errors, track improvements and spot any fraudulent activity in your name.
To quickly boost a low CIBIL score, consistently pay EMIs and credit card bills on time. It is also recommended to keep credit utilization below 30-40% of the total credit limit. Avoid applying for multiple loans or credit cards in a short period.
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