648 CIBIL Score

648 CIBIL Score: Is it good or bad?

A 648 CIBIL score is considered fair. It falls slightly below the threshold of a good score, which typically starts at 700. While it doesn’t disqualify you from securing loans or credit, it may result in higher interest rates and stricter terms. Lenders might perceive you as a moderate-risk borrower, necessitating additional financial scrutiny. Improving this score can significantly enhance your creditworthiness, unlocking better financial opportunities. Focus on maintaining timely payments, reducing debt, and limiting new credit applications to transition your score from fair to good or excellent, which will provide better financial advantages.

How to improve your 648 cibil score

1. Pay bills on time: Consistently meeting payment deadlines is crucial to boost your score.
2. Reduce debt: Aim to lower your credit utilisation ratio by paying off outstanding balances.
3. Avoid multiple credit applications: Limit frequent credit enquiries, which can negatively impact your score.
4. Check your credit report: Regularly review your report for errors and dispute inaccuracies.
5. Maintain old credit accounts: Keeping longstanding credit accounts open improves your credit history.
6. Diversify credit mix: Having a mix of secured and unsecured credit can enhance your score.
7. Set financial goals: Stick to a budget to manage expenses and maintain financial discipline.

How does a 648 CIBIL Score impact interest rates?

A 648 CIBIL score often results in higher interest rates for loans and credit cards. Lenders view this score as moderate risk, leading them to impose elevated charges to offset potential non-repayment risks. For example, personal loans or credit cards might carry interest rates 2–5% higher than those offered to borrowers with excellent scores. Similarly, home loan applicants might face stricter eligibility requirements and higher equated monthly instalments (EMIs). Improving your score can secure access to lower rates, better repayment terms, and fewer restrictions, reducing your overall borrowing costs and financial burden in the long run.

Conclusion

A 648 CIBIL score is a fair starting point but leaves room for improvement to access better financial opportunities. While it may not entirely hinder your ability to secure credit, it can lead to higher interest rates and stricter terms. By adopting responsible financial practices such as timely payments, reducing debt, and monitoring your credit report, you can steadily improve your score. A higher credit score opens doors to favourable loan terms, lower interest rates, and enhanced financial freedom. Prioritising credit health not only saves money but also ensures better financial stability and security in the long term.