Ask CreditSmart Credit & CIBIL News

Advice on Credit And CIBIL Score Building

Advice on Credit and CIBIL Score Building

When It Comes to Credit, Always Be Building

We get so many questions everyday from readers like you. Here’s one from Swapnil with some concerns about credit building. Let’s take a look and see how he should proceed.


I am Swapnil *********  from Pune. I am 32 yrs married from Pune- Maharashtra.

I don’t have any credit history as I have not taken any loan or not using any credit card till now.
I am working with Ltd company and getting my salary (22k) in my personal bank account. I am living in rented flat.
I am thinking to apply for personal loan of Rs 50000 for 1 year tenure.
Just want to know is that enough to build good credit score by paying EMI on time?
Just for example of 50k loan for 12 moths, how much tentetive score i can have?
Requesting you pls guide me for building good credit score to avail credit card.

Thanking you,

Swapnil ********

Consistency Is Key, Not Amount

Hello Swapnil! Thanks for your email, you pose some good questions that I’m sure are on the minds of many in your position. The first thing you mention is how you do not have any credit history and are not using any credit card. Considering you limited credit profile, it’s quite possible you could get declined for the Rs 50000 Loan you are considering. The bank may require a guarantor to co-sign your loan if they deem you to have too little credit history to be lended to.

The most famous example of credit building we recommend to all readers is to get yourself a credit card, and use it for small purchases frequently. The next step, and most important, is to not carry a balance on it. Pay your card off in full each month. After several months of this, you have easily built up a positive repayment history with your card issuer, and will have given them enough time to report the info to CIBIL. Of course, the longer you do this, the better off your score will be.

You have the right idea about building CIBIL by paying your EMI consistently each month if you get approved for the loan – however like I mentioned, it can be a catch-22 situation where you might not be eligible for a loan if you have too little history.

Know Before You Go

Your salary and credit score will determine if you can get that loan, Since you do not know your score now, it would be important to get that first so you can see where you stand. You can get your free CIBIL score estimate right here on CreditSmart, or if you take the time and head over to you can get your score and report there once per year free as well.

Since you have not taken any loans or credit cards up until this point, your CIBIL report should be a clean slate. If you had any bike or auto payments in the past that you have successfully paid off, those should be reflected. You have the right idea for building credit, but just make sure to can handle the EMI. You can build credit by paying back small amounts consistently too, to CIBIL the most important thing is consistency.

Best of Luck,

CreditSmart Staff CreditSmart

Follow Us Facebook  @becreditsmart

Leave a Comment