Loan Rejected Due To Low CIBIL Score? Try These Smart Tips To Boost It

Got turned down for a loan due to a low CIBIL score? You’re not alone — but the good news is, your score can be improved with the right financial habits. 

What is the Full form of CIBIL?

The full form of CIBIL is Credit Information Bureau (India) Limited. CIBIL was founded in August 2000 and is India’s first credit information firm.Your CIBIL score (300–900) reflects your credit history — repayments, credit use, and loan behaviour.

Lenders typically consider 750+ excellent, while anything below 650 could hurt your chances.

Also Read: Credit Score at 700? Here Are 5 Proven Ways to Improve Credit Score | Republic World

Why Your Score May Be Low

Your low CIBIL score could be due to the following reasons:

• Late or missed EMIs
• High credit card usage
• Too many recent loan applications
• No or poor credit history
• Loan defaults or settlements

Smart Ways to Improve Your Score
 

1. Pay on Time:
Never miss EMIs or credit card due dates. Timely payments are crucial.

2. Limit Card Usage:
Try to use less than 30% of your credit limit.

3. Don’t Overapply:
Multiple loan inquiries lower your score.

4. Keep Old Accounts Open:
They improve your credit age and score.

5. Maintain a Healthy Credit Mix:
A mix of secured and unsecured loans helps your profile.

6. Monitor Your Credit Report:
Check for errors and dispute them if needed.

The Bottom Line

Improving your CIBIL score takes time, but it’s worth it. With consistent effort, you can move from rejections to approvals and unlock better loan terms down the line.