Loans are a popular way of meeting a financial crunch or some emergency requirements. You can avail of either a secured or unsecured credit. When it comes to secured credit, gold loans are a popular choice. But, how easily you can get credit depends on your  CIBIL™ score. Your credit score is an indicator of your repayment ability and plays a crucial role in your eligibility for a loan. It is ideal to check your credit score before applying for a gold loan or any other type of loan. Usually, the ideal credit score for a gold loan approval is 750 or above. Although, you can get a gold loan with a lower  CIBIL™ score, a higher score will help you get a gold loan easily, quickly, and at a preferential interest rate.

Credit Repayment History

The repayment history reflects your ability to make credit repayments. It is the most important component considered while evaluating your CIBILTM score. It shows how well you can make timely EMI payments. Defaulting on your credit dues or not making loan repayments on time will lead to a major dip in your CIBILTM score and affect your credit history. 

Credit Utilization Ratio 

Credit utilization reflects how dependent you are on credit. It is the ratio of how much credit you utilize to the total amount of credit limit available in your account. Lenders look at borrowers with high credit utilization ratios as risky. A high CUR means that you are very hungry for credit and cannot manage your financial needs independently. So, limit your CUR to about 25 to 30% of the credit usage offered to you. 

Credit Mix 

The CIBILTM score is greatly impacted by the mix of credit accounts in credit portfolio. A portfolio includes the number of secured and unsecured lines of credit against your name. A secured loan is a loan that requires a collateral or a security like a gold loan. A non secured loan does not require collateral. It is ideal to have a mix of loan EMIs and credit card dues. This shows to the lender that you can manage different types of credit. It further helps in making your credit history strong and reflects that you are credit worthy. This factor is important when you check your CIBILTM score for a gold loan or any other credit. So, try to maintain a healthy balance of credit types. If you have too much of unsecured debt, apply for a secure credit to balance and improve your CIBILTM score. 

Applying for Credit Frequently

The number of hard inquiries registered on your profile also impacts your CIBILTM score. A hard inquiry is the one that lenders make about your credit profile when they receive your application for credit. When you check your CIBILTM score online, it registers as a soft inquiry and thus has no impact on your score. Having too many inquiries has a negative impact on your credit score, since it shows that you require credit frequently. This creates an impression that you will not be able to manage your finances independently. So, do not apply for credit frequently and never apply for multiple loans from multiple lenders all at once. If a lender rejects your application, it is ideal to know the reason before re-applying. This will help in improving your chances of approval and reduce your frequency of re-applying. 

Errors in The CIBILTM Report 

Carefully review the personal and credit related details of your credit report. If you see any errors, be sure to contact the bureau immediately and have them corrected. Having any errors on your report can have a negative impact on your score. This may affect your chances of getting a gold loan or any other loan. Before you apply for a gold loan or any other loan, check your CIBILTM score. While you should check your CIBILTM score online before applying, you can use a credit score simulator. The simulator gives you an idea about how new credit will impact your CIBILTM score. Once you take the loan, make timely and complete payments of your loan. This will help you maintain and improve your CIBILTM score for a gold loan or any other loan you may take in the future. Aim for a credit score closer to 900 so that you can avail credit easily and at affordable interest rates.  

Tips To Maintain A Good CIBILTM Score

It is obvious that we have to maintain a good CIBILTM score in order to increase  loan eligibility, get low interest rates, get rewarding credit cards, and more. Here are some guidelines to maintain a good CIBILTM score. 

  • Make timely bill and EMI repayments

  • Avoid defaulting on bill payments 

  • Maintain a credit utilization ratio within the required limit 

  • Avoid applying for many loans or credit cards within a short period

  • Maintain a healthy balance between secured and unsecured loans

  • Check your credit report regularly and flag off any errors

  • Avoid making multiple credit inquiries

  • Check your co-signed, guaranteed, and joint accounts monthly

  • It is not advisable to deactivate old or unused credit cards


An excellent CIBILTM score shows your strong financial capability among lenders. Besides portraying your profile as creditworthy, it also ensures that you get the best offers when applying for credit. You can check your credit score at CreditMantri and also download a free credit health report. 


1. What can impact your credit score negatively?

When you make delayed payments, it impacts your credit score negatively and the score drops significantly. 

2. What is the CIBILTM score for SBI personal loan?

The CIBILTM score ranges from 300 to 900 and a higher score will help you fetch loans easily. The CIBILTM score required for SBI Bank Personal Loan is 750 and above.