725 CIBIL Score - Is it good or bad?
A 725 CIBIL Score is firmly in the good category, reflecting a strong credit history and responsible debt management. This score indicates that you have been reasonably diligent in handling your credit obligations, making you an attractive prospect for lenders. While it’s not in the excellent range, it provides a solid foundation for acquiring favourable credit terms.
How to improve your 725 CIBIL Score?
To improve a 725 CIBIL score, focus on further reducing your debt, especially high-interest and revolving credit like credit cards. Pay all bills on time, and aim to keep your credit utilisation ratio under 30% to demonstrate credit discipline. Regularly monitor your credit report to rectify any inaccuracies or outdated information promptly, which can positively influence your score.
How does a 725 CIBIL Score impact interest rates?
With a 725 CIBIL score, you are likely to receive fairly competitive interest rates from lenders, as this score portrays you as a low-risk borrower. It ensures better-than-average rates on loans and credit facilities, although not the lowest possible, which are typically reserved for those with scores above 750.
