Which Loans Can Boost Your CIBIL Score Fastest?

Your CIBIL score isn’t just a number—it’s your financial reputation. Lenders use it to decide whether you’re trustworthy enough to lend money to.

If your score is 650 or below, you may face:

• Higher interest rates
• Loan rejections
• Lower credit limits

The good news? The right kind of loan, used the right way, can improve your score faster than months of slow credit card payments.

In this guide, we’ll cover:

• Which types of loans boost your CIBIL score the fastest
• How each loan impacts your credit profile
• Mistakes to avoid so you don’t harm your score further
• Realistic timelines for improvement

2. Quick Refresher: How Loans Affect Your CIBIL Score

Before we talk about which loans are fastest, let’s understand the mechanism.

CIBIL (and other credit bureaus) calculate your score based on factors like:

Key takeaway: If you take a loan and repay it on time, your payment history and credit mix improve, which together can raise your score significantly.

3. Secured vs Unsecured Loans – Which Is Better for a Fast Boost?

Loans are broadly of two types:

• Secured Loans – Backed by collateral (like gold, property, FD)
• Unsecured Loans – No collateral (like personal loans, credit cards)

For CIBIL score improvement:

• Secured loans are easier to get even with a low score, because the lender has security.
• Unsecured loans have a stronger positive impact if repaid well, but are harder to get with bad credit.

4. The 6 Best Loan Types to Improve CIBIL Score Fast

Here are the top loan options ranked by impact + accessibility for Indian borrowers:

4.1. Gold Loan – Quick Approval Even with Low CIBIL

Why it works:

• Secured loan – lender’s risk is low
• Easy approval even for scores below 600
• Immediate disbursement (same day in most cases)

Impact on CIBIL:

• Improves payment history
• Adds a secured loan to your credit mix
• Can help boost score within 3–6 months of timely EMI payments

Example: If you take a ₹1,00,000 gold loan and repay ₹8,500/month for 12 months on time, your score can go up by 50–80 points depending on your history.

4.2. Credit Builder Loan (Offered by Some NBFCs & Fintech Apps)

What it is: A small loan (₹10,000–₹25,000) designed purely for credit score improvement.

How it works:

• You take a small loan and repay in EMIs
• Some lenders even deposit the loan amount in a fixed deposit and release it after full repayment

Impact on CIBIL:

• Perfect for those with no credit history (thin file)
• 6–12 months of repayment can take you from NA/0 to 700+

4.3. Two-Wheeler Loan – Small Ticket, High Impact

Why it works:

• Easy to get for salaried/self-employed
• Ticket size ₹40,000–₹1,00,000 means low EMI burden
• Builds a solid repayment track record quickly

Impact on CIBIL:

• Helps those with low or no score
• If paid off in 12 months without delays, can add 40–60 points

4.4. Secured Credit Card (Against Fixed Deposit)

Why it works:

• Low risk for lender (FD as collateral)
• You control utilisation ratio by keeping spending below 30% of limit
• Builds both loan and revolving credit history

Impact on CIBIL:

• Boosts score within 3–4 months if payments are on time
• Especially useful for people with past defaults

4.5. Consumer Durable Loan (Small EMI-Based Purchases)

What it is: Loans for electronics, appliances, etc., offered at 0% or low interest in stores.

Impact on CIBIL:

• Small EMIs are easy to maintain
• Adds diversity to your credit profile
• Best for those who can’t get large loans yet

4.6. Personal Loan (Only If You Qualify)

Why it works:

• Strong positive impact if paid on time
• Larger ticket size shows lender trust

Drawback:

• Hard to get with low score
• High interest if your score is below 700

5. How Fast Will Your CIBIL Score Improve? (Real Timelines)

6. Pro Tips to Maximise CIBIL Boost from Any Loan

1. Never miss an EMI – Even one late payment can undo months of improvement.
2. Choose manageable EMI amounts – Don’t stretch your budget.
3. Maintain a mix – Have both secured and unsecured credit.
4. Avoid applying for too many loans at once – Multiple hard enquiries hurt your score.
5. Close high-interest loans first – Lenders see this as responsible behaviour.

7. Mistakes to Avoid When Taking Loans to Improve CIBIL

• Taking big loans you can’t repay – leads to defaults, killing your score.
• Paying only minimum due on credit cards – keeps utilisation high, limiting score growth.
• Closing old accounts too soon – reduces credit history length.

8. Final Verdict – Which Loan Is the Winner?

• If your score is below 600: Gold Loan or Secured Credit Card works best.
• If you have no credit history: Credit Builder Loan or Two-Wheeler Loan is ideal.
• If your score is already 650+ and you qualify: Personal Loan gives the biggest impact.

9. Boost your credit Score with GoodScore

If you’re ready to improve your CIBIL score, GoodScore can help you find the right loan based on your current credit profile. Check your CIBIL instantly, get matched with lenders, and track your improvement month by month.

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