How First-Timers Can Build a Cibil Score

I am planning to take a personal loan to fund a certification course, but I've never taken any loans or used a credit card before. For someone like me who's just starting out and has no credit history, how can I build a Cibil score?

- Bhavesh Jain

—Name withheld on request

If you're planning to take a personal loan for a certification course but have never used a credit card or taken a loan before, you're likely what lenders call "new to credit." This means you don't yet have a credit history, and probably don't have a Cibil score either.

A Cibil score is a three-digit number ranging from 300 to 900 that shows how well you've handled borrowed money in the past. Lenders use this number to assess how likely you are to repay a loan. The higher your score, the better your chances of getting a loan at a good interest rate.