675 Credit Score: Good or Bad?

A 675 credit score is a mixed bag, depending on the credit bureau's evaluation criteria. While Experian, Equifax, and CRIF High Mark consider it good, TransUnion CIBIL categorises it as poor. This divergence highlights the importance of understanding how different bureaus assess your creditworthiness. Regardless of the bureau, a 675 CIBIL score indicates room for improvement to unlock better financial opportunities.

Here’s how a 675 credit score is categorised across India’s credit bureaus:

A 675 credit score has various implications depending on the lender’s assessment criteria:

1. Limited Loan Options

With a CIBIL score 675, lenders relying on TransUnion CIBIL may view you as a higher-risk borrower, restricting your loan options

2. Higher Interest Rates

Even if loans are approved, a 675 credit score might result in higher interest rates compared to better credit scores

3. Restricted Access to Premium Credit Cards

While you might qualify for standard credit cards, premium cards with rewards, cashback, or travel perks may remain inaccessible with a 675 CIBIL score

4. Greater Documentation Requirements

Lenders may request additional income verification or guarantors to offset the perceived risk associated with a 675 credit score

5. Impact on Insurance Premiums

Certain insurers may consider your 675 CIBIL score when calculating premiums, potentially resulting in higher rates

Improving a CIBIL score 675 means you need to put consistent efforts and disciplined financial habits.

 

Here’s how you can do it:

1. Ensure Timely Payments

Always pay EMIs, credit card dues, and other bills on or before their due dates. Late payments significantly impact your credit score.

2. Monitor Your Credit Report

Check your credit report regularly for inaccuracies or discrepancies. Rectify errors promptly to protect your 675 CIBIL score.

3. Reduce Credit Utilisation

Maintain your credit utilisation ratio below 30%. For instance, if your credit limit is ₹1 Lakh, aim to use ₹30,000 or less.

4. Avoid Frequent Credit Applications

Limit credit applications to avoid multiple hard inquiries, which can negatively affect your credit score

5. Diversify Your Credit Portfolio

A mix of secured loans (e.g., car loans) and unsecured loans (e.g., personal loans) reflects responsible credit management, boosting your 675 CIBIL score

6. Pay Down Outstanding Debt

Reducing your existing debts improves your debt-to-income ratio, positively influencing your credit score

7. Retain Older Credit Accounts

Try to retain your long-standing accounts with positive payment histories, as these contribute to your credit age, which can improve your CIBIL score

A 675 credit score presents opportunities for improvement, especially if evaluated as poor by certain bureaus. Maintaining timely payments, monitoring your credit report, and reducing credit utilisation are critical for elevating your CIBIL score. Enhancing your score ensures better access to loans, lower interest rates, and eligibility for premium financial products.