Is it bad to take a new loan just to build credit score?

Short answer
Yes, it’s usually a bad idea to take a new loan only to build a credit score. You end up paying interest and fees for something you can build cheaper and safer.

Why is it not worth it

A loan improves credit only if you repay every EMI on time for months. One missed EMI can hurt your score more than the “benefit” of taking the loan. Plus, personal loans often have processing fees and higher interest rates. Credit score ke chakkar mein extra cost lena smart nahi hota.

When it can make sense

If you already need the money for a genuine reason and EMI is comfortable, then taking a loan can also build credit as a side effect. But “only for score” is not a strong reason.

Better ways to build credit without a loan

• Use a credit card lightly and pay the full bill on time
• Keep credit utilisation low
• Avoid too many applications in a short period
• Pay all EMIs and bills on time
  These habits matter more than “having a loan”.

Credit score reality

A credit score is built on repayment discipline, not on having more debt. Lenders also look at your income, existing EMIs, and overall profile. So a new loan can even reduce eligibility if it increases your EMI load.

Final takeaway

Taking a new loan just to build a credit score is usually not worth it. Build credit through regular, low-risk habits. Score naturally improve ho jaata hai when your payments are clean and consistent.