Your CIBIL score reflects your creditworthiness, indicating your ability to repay your loan or credit card dues within the given tenure. It is an important factor that lenders consider while deciding whether to approve your loan application.  

A score of 675 is usually considered as "fair" by both credit bureaus and lenders. But does this score guarantee loan approval and better interest rates? Banks look at this number differently than NBFCs do, interest rate gaps can be steep, and there are specific moves that push 675 closer to 750 faster than most people realise. 

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CIBIL scores are generated by TransUnion CIBIL, one of the four credit rating agencies in India. These scores range from 300 to 900, with a higher score indicating better credit discipline.  

A score of 675 typically falls in a category where lenders perceive a borrower as someone who has shown credit discipline, but something is pulling the number down. It could be due to factors like high credit card usage, lower credit history, or maybe a missed EMI from two years ago that is still dragging down the score. 

A score of 675 may usually be good enough to get an unsecured personal loan. But the borrower may not be eligible for getting low interest rates or better terms on the loan. Every lender has its own internal risk assessment process based on which it may approve or reject your loan application.  

For example, Rahul, 28 years old, works in an IT firm and has a CIBIL score of 675. He needs ₹3 lakh for a medical emergency. He applies for a personal loan with three lenders. The first lender, a public sector bank rejected his loan application immediately.  

The second lender, a private bank offered an interest rate of 17.5% p.a. with a 2.5% processing fee. But the third lender, an NBFC, approved his loan at 16% p.a. interest rate with a processing fee of 2% after considering additional factors like employment stability, income and employer profile. Same three-digit number, three completely different outcomes because each lender had its own loan approval process.  

Going from a score of 675 to 750 is not a fantasy. It usually takes 6 to 12 months of steady effort. You can use these methods to improve your CIBIL score: 

Pay Every Bill on Time 

Your repayment history usually accounts for 30-35% of the total score calculation. One missed credit card payment can knock off 50 to 100 points, and it stays on the report for up to 36 months. 

To avoid any missed EMI payments, set up the auto-debit facility in your account to repay the EMIs within the due date. You can also pay the bill 2 to 3 days before the actual date. It will prevent situations where a bank marks your on-time payments as late due to processing delays.  

Bring Down Your Credit Utilisation Ratio 

The credit utilisation ratio (CUR) calculates the percentage of available credit limit you are currently using. It has a noticeable impact on your credit score. Having a CUR of 30% or below indicates that you are using your credit responsibly, which can have a positive impact on your score.  

If the credit limit is ₹1 lakh and spending regularly hits ₹65,000, that 65% utilisation is pulling the score down every single month. To avoid that, you can either spend less on the card or call the bank and request a higher limit (without increasing your spending). The second option helps reduce the ratio without changing your spending habits. 

Stop Applying for Loans Everywhere 

When you apply for a loan or a credit card directly with a lender, credit bureaus consider it as a hard inquiry. Each hard inquiry can reduce your score by a few points.  

Multiple such inquiries within short durations, say 3-4 months, can not only reduce your score drastically but also indicate to lenders that you are desperate for a loan. Therefore, you should apply for a loan only when it is essential. 

Fix Errors in Your Credit Report 

Roughly 1 in 5 credit reports has some kind of mistake in it. Wrong account listed, paid-off loan still showing as active, someone else's default mixed in. Pull the free annual report from CIBIL's website, go through it line by line. Raising a dispute for genuine errors can boost your score within a short duration.  

Focus on Your Credit Mix 

CIBIL's model of calculating your credit score also factors in your credit mix. A profile showing only credit cards is less impressive than one with both a credit card and a repaid loan. Taking a small personal loan (say ₹1 to 2 lakhs) and paying it off on schedule shows lenders a borrower can handle different kinds of debt. 

Checking personal loan eligibility first saves time and avoids pointless hard inquiries. 

Interest rates on personal loans can drop substantially if you improve your score from 675 to 750. Furthermore, you become eligible for higher credit limits and pre-approved loan offers, and premium credit cards. Some insurance companies check credit scores when deciding premiums these days. Even landlords in Mumbai, Bengaluru, and Delhi have started pulling CIBIL reports before signing rental agreements. 

The habits built while climbing from 675 to 750 (tracking spending, keeping utilisation low, monitoring the report regularly) end up being worth more than the score itself. Those habits stick around long after the number hits the target. 

Curious how different rates change monthly payments? You can use the EMI calculator from Finnable to compare different combinations of interest rates, loan amounts and tenure to know how it impacts your loan EMIs.