A short-term personal loan, when managed responsibly, can help improve your CIBIL score by adding to your credit mix and demonstrating timely repayment behavior. While applying for such a loan may cause a small, temporary dip in your score due to a hard inquiry, consistent on-time payments build a positive credit history and show lenders you can handle debt well. Choosing a manageable loan amount, paying EMIs on time, and avoiding missed payments are crucial, as even a single missed EMI can harm your score. This approach not only provides quick financial relief but also strengthens your credit profile, helping you qualify for better loans and rates in the future