Knowing how your credit score shapes loan approval can help you borrow more.

When you plan to get a personal loan, lenders first look at your CIBIL score. This score has a direct effect on your loan approval, interest rate, and even the amount you can borrow.

1. CIBIL Score Shows How Trustworthy You Are

A score over 750 means you're good to go and makes getting a loan easier.

2. Bad Score Means Higher Interest or No Loan

If your score is under 650, you might not get a loan at all or you'll pay more in interest.

Are you new to credit? This guide shows you how to get your first CIBIL score and establish a strong credit history.

Follow these steps to begin:

Get a Secured Credit Card

Begin with a credit card backed by a fixed deposit. Banks issue these cards, and they help you build credit.

Get a Small Consumer Loan

Purchase a phone or appliance through EMI and pay on schedule. This action demonstrates credit activity.