664 CIBIL Score - Is it good or bad?
A 664 CIBIL Score is considered fair but falls short of the good range, which starts at 700. While it demonstrates improved financial management compared to lower scores, it still indicates moderate risk for lenders. Borrowers with a 664 score can qualify for loans or credit cards, but lenders might offer higher interest rates or restrictive terms. This score suggests room for improvement in financial habits, such as timely repayments and reducing credit utilisation. By maintaining consistent financial discipline and monitoring credit reports, borrowers can enhance their creditworthiness and gain access to better financial products and services.
How to improve your 664 CIBIL Score?
To improve a 664 CIBIL Score, prioritise making all EMI and credit card payments on time, as timely repayments positively impact your credit score. Keep your credit utilisation ratio below 30% of your total limit to reflect responsible credit usage. Avoid multiple loan or credit card applications, as frequent inquiries can harm your score. Monitor your CIBIL report regularly to identify and resolve errors. Maintain a healthy mix of secured and unsecured credit to strengthen your credit profile. With patience and consistent effort, you can boost your score and improve access to loans and credit cards on favourable terms.
How does a 664 CIBIL Score impact interest rates?
A 664 CIBIL Score can result in slightly higher interest rates compared to good or excellent scores. Borrowers with this score are considered moderately risky, leading to lenders approving loans or credit cards at less favourable terms. For example, individuals with excellent scores may secure loans at interest rates as low as 9-10%, while those with a 664 score might face rates around 12-14%. These higher rates increase borrowing costs. Improving your credit score through timely repayments and disciplined financial management can help you qualify for loans at lower interest rates, saving money in the long run.
