613 CIBIL Score

613 CIBIL Score: Is it Good or Bad?

A CIBIL score of 613 is generally considered subpar, placing it in the "fair" or "poor" range, depending on the rating model. This score indicates a higher risk for lenders, as it suggests past credit repayment issues or high credit utilisation. While not the lowest, it falls short of the 700-750 range typically deemed “good” for obtaining favourable loan terms or credit cards. However, a 613 score is not a dead end; with concerted effort, it can be improved, enhancing your financial prospects over time.

How to Improve Your 613 CIBIL Score

Improving a 613 CIBIL score requires adopting disciplined financial habits:

Pay Bills on Time: Late payments can significantly hurt your score. Timely payment of EMIs and credit card dues builds trust.

Reduce Credit Utilisation: Aim to use less than 30% of your total credit limit to demonstrate responsible usage.

Check Your Credit Report: Regularly review your report for errors and disputes that may drag down your score.

Limit Credit Inquiries: Frequent loan or credit applications can lower your score.

Clear Outstanding Debts: Paying off existing loans or credit card balances can boost your score gradually.

Patience and consistency are key, as significant improvements take time.

How Does a 613 CIBIL Score Impact Interest Rates?

A 613 CIBIL score typically leads to higher interest rates on loans and credit products. Lenders view borrowers with such scores as higher risk, prompting them to mitigate potential losses with steeper rates. For example, while someone with a 750+ score might secure a personal loan at 10%, a borrower with a 613 score might face rates as high as 18-20%. Additionally, low scores often lead to stricter loan terms, lower credit limits, or outright rejection for unsecured loans.

Improving your score can significantly reduce these costs and widen your access to better financial products.

Conclusion

A 613 CIBIL score is a wake-up call to take charge of your financial health. While it poses challenges like high interest rates and limited credit options, proactive steps such as timely payments, debt reduction, and prudent credit usage can lead to gradual improvement. Elevating your score not only enhances borrowing opportunities but also strengthens overall financial stability.