CIBIL™ score is an important measure that banks and lenders consider when it comes to sanctioning loans and credit cards. Customers having a credit score of 700 or above can easily secure a loan. However, if your credit score is less than that, then you might face difficulty in getting a loan at lower interest rates.

However, it is not impossible to get a loan with a CIBIL™ score of 600. 

How to Get a Personal Loan with a CIBIL™ Score of 600?

With a credit score of 600, you will need to put in extra effort to showcase your credibility and prove that you are capable of repayment. Banks and lending institutions need to be sure that they will receive their money on time. You can achieve this by showing a decent stable monthly income, low financial obligations, enough work experience, a stable job, and sound financial well-being.

  • Apply with a co-applicant or guarantor: Having someone with a good credit score co-sign your loan can significantly improve your chances of approval.
  • Offer collateral: You can secure your loan with an asset like a car or property to make it more attractive to banks and lenders and also lead to lower interest rates.
  • Apply for a smaller loan amount: Requesting a lower loan amount reduces the risk for the lender and might increase your chances of approval.
  • Negotiate the terms: Be prepared to negotiate the interest rate and other loan terms with the lender.

Keep in mind that you might have to pay higher interest rates while applying for a loan with a credit score of 600.

If you are struggling to manage your loans and are unable to get credit at the best rates, CreditMantri’s Credit Fit feature can help you! Connect with a personal credit coach and get expert guidance on how to improve your credibility. 

Tips to Improve Your Credit Score Above 600

1. Make timely payments: Pay your credit card bills, loan EMIs, and other dues in full and on time, every single month. Your score can drop even when you miss a single payment.

2. Maintain a low credit utilization ratio: Ideally, keep your utilisation below 30%. Make it a habit to pay your credit card balances regularly to bring down this ratio and improve your score.

3. Check your credit report regularly: Get your CIBIL™ report at least once a year. You can get it for free from the CIBIL™ website or through various financial platforms like CreditMantri. Our credit score is powered by Equifax.

4. Limit inquiries for new credit: If you make frequent inquiries for loans or credit cards, it can negatively impact your score. Avoid applying for multiple credit products at a time and only apply when needed.

5. Build a healthy credit mix: Having a mix of secured loans (e.g., car loan) and unsecured loans (e.g., credit cards) shows responsible credit management to lenders. 

6. Take the help of credit improvement services: The best and quickest way to fix your credit score and get back on track is to opt for credit improvement services. It can help you with analysing your credit report, coordinating with the lender to get the best repayment plan, and more.

7. Don't close old credit accounts: The length of your credit history matters, and keeping older accounts open (as long as they are managed responsibly) can positively impact your score.

8. Be patient and consistent: Improving your credit score takes time and consistent effort. Following these practices will gradually increase your score over several months.

Disclaimer: This page is provided for information only and contains information which has been gathered from other sources. We do not guarantee the veracity of the information provided or contained in it as such data may vary from time to time. The user is expected to verify with the respective source before making any decisions or actions.