695 CIBIL Score - Is it good or bad?
A 695 CIBIL Score is considered fair and on the verge of being classified as good. It reflects improved financial behaviour, but still shows some level of risk to lenders. Borrowers with this score are likely to qualify for loans and credit cards but might not receive the most favourable terms, such as low interest rates. This score indicates areas for improvement, such as timely payments or reducing credit utilisation. Strengthening financial discipline can help increase your score to the good or excellent range, enhancing your creditworthiness and enabling access to premium financial products and competitive interest rates.
How to improve your 695 CIBIL Score?
Improving a 695 CIBIL Score requires adopting disciplined financial practices. Ensure all EMIs and credit card payments are made on time, as timely payments significantly impact your score. Keep your credit utilisation ratio under 30% of your total credit limit to show responsible credit management. Avoid frequent applications for loans or credit cards, as multiple inquiries can reduce your score. Regularly review your CIBIL report to identify and correct any errors. A mix of secured and unsecured credit strengthens your credit profile. With consistent efforts, you can improve your score and qualify for better financial opportunities.
How does a 695 CIBIL Score impact interest rates?
A 695 CIBIL Score can result in slightly higher interest rates compared to those with excellent scores. Lenders view this score as a moderate risk, which may lead to interest rates around 11-13%, compared to the 9-10% offered to borrowers with scores above 750. While borrowing is accessible, the terms may not be the most competitive. Improving your score through timely repayments and disciplined credit usage can help you secure loans at lower rates, reducing long-term borrowing costs.
