654 CIBIL Score

654 CIBIL Score: Is it good or bad?

A 654 CIBIL score is considered fair but not ideal. It suggests that while you meet some creditworthiness criteria, lenders may view you as a moderate risk. This score can limit access to premium financial products like low-interest loans or high credit limits. Though not in the poor category, a 654 score may still result in higher interest rates and stricter approval conditions. To qualify for better terms, improving your score by addressing negative factors, such as late payments or high credit utilisation, is crucial. Regular monitoring and corrective actions can help you progress towards a good score.

How to improve your 654 CIBIL Score

Pay bills on time: Ensure timely payment of all credit card bills, loans, and utility bills.

Lower credit utilisation: Keep credit card usage below 30% of your total limit.

Check for errors: Regularly review your credit report to dispute inaccuracies.

Avoid new debt: Limit applying for new loans or credit cards.

Settle outstanding debts: Clear overdue accounts to reduce negative marks.

Increase credit age: Maintain older accounts to improve credit history length.

Use a mix of credit: Diversify with a balance of secured and unsecured credit.

Stay consistent: Follow these steps over time for lasting improvement.

How does a 654 CIBIL Score impact interest rates?

A 654 CIBIL score directly affects interest rates, as lenders view borrowers in this range as moderately risky. Personal and home loan interest rates may be higher, making repayments costlier. Additionally, credit card issuers might offer lower credit limits or fewer benefits. For instance, a borrower with a good score might receive a loan at 8% interest, while a 654 score could attract rates of 10% or higher. To secure favourable terms, focus on improving your score. Enhanced credit health reduces borrowing costs and widens access to better financial products, easing long-term financial burdens.

Conclusion

A 654 CIBIL score is categorised as fair, offering basic access to credit but with limitations. While it is not a bad score, improving it can unlock better financial opportunities, such as lower interest rates, higher credit limits, and premium credit cards. By practising good financial habits like timely payments, reducing credit utilisation, and reviewing your credit report for errors, you can steadily boost your score. A higher CIBIL score not only enhances your creditworthiness but also provides peace of mind and financial flexibility. Strive for consistent improvement to achieve a good or excellent score and secure better financial prospects.