684 Credit Score: Is It Good or Bad?

A credit score of 684 is usually believed to be a good score. It reflects a mostly stable financial history but with some aspects requiring attention. While it does not disqualify you from accessing credit, lenders may view it as a moderate risk, which could lead to higher interest rates or stricter loan conditions. Improving your credit score from this point can unlock better financial products and terms.

Credit bureaus in India, such as CIBIL and Experian, use distinct scoring models, leading to slight variations in how a 684 score is classified. The details of this representation are as follows:

A 684 credit score has both advantages and limitations. Here’s how it might impact your financial opportunities:

Fair Chance of Loan Approval 

Lenders are more likely to approve loans to those with a 684 CIBIL score compared to lower scores like 600. However, the interest rates may still be on the higher side.

Higher Borrowing Costs

While you may qualify for loans, the associated interest rates may be less competitive compared to borrowers with good or excellent scores, increasing your overall borrowing costs.

Access to Basic Credit Cards

You can qualify for standard credit cards with decent features. However, premium cards offering perks like cashback, travel benefits, or higher reward points may remain out of reach.

Moderate Insurance Premiums

Insurance providers may view your score as an average indicator of creditworthiness, leading to moderate premiums compared to those with good scores.

Easier Rental Approvals

With a 684 CIBIL score, securing rental property agreements may be easier compared to those with lower scores. However, in competitive markets, landlords may still scrutinise your credit history.

Limited Negotiating Leverage

While lenders may approve your applications, negotiating better terms, such as reduced interest rates or higher loan amounts, could be challenging with a fair score.

Employer Reviews

Certain employers, especially in finance and banking, may review credit scores during background checks. A 684 credit score is less likely to raise significant concerns but could still be a minor factor considered in hiring decisions.

With consistent effort and disciplined financial management, you can improve your 684 credit score. Here are some tips you can employ:

Ensure Timely Payments

Paying your bills on time is critical to improving your score. Automate payments or set reminders to avoid missed or late payments on loans, credit cards, or utility bills.

Reduce Your Credit Utilisation

Ensure that your credit card balances are lower than the credit limit available to you. Aim for a utilisation ratio below 30%. For example, if your limit is ₹2 Lakhs, keep the usage below ₹60,000.

Limit Your New Credit Applications

Each credit application results in a hard inquiry, which may temporarily lower your credit score. So, apply for credit only when necessary and focus on managing existing accounts.

Check Your Credit Report for Errors

Errors such as incorrect late payments or unrecognised accounts can negatively impact your score. Regularly review your credit report and dispute any inaccuracies with the bureau.

Repay Your High-interest Debts 

Paying off high-interest debts improves your credit profile and reduces your debt-to-income ratio, positively impacting your score.

Maintain a Diverse Credit Portfolio

Having a mix of credit types, such as secured loans, unsecured loans, and credit cards, demonstrates responsible financial behaviour. However, avoid unnecessary borrowing.

Keep Older Credit Accounts Open

Long-standing accounts with positive payment histories contribute positively to your credit score. Avoid closing older accounts unless absolutely necessary.

Consider Secured Credit Options

If premium credit cards are inaccessible, secured credit cards linked to fixed deposits can help you rebuild your credit and gradually improve your score.

Consult a Financial Expert

A financial advisor or credit counsellor can guide you in identifying weak points in your credit behaviour and developing a plan to improve your score effectively.

A 684 credit score represents good credit management and repayment capabilities. It usually helps you access various credit products but with some limitations. By addressing key areas such as timely payments, reducing credit utilisation, and diversifying your credit profile, you can improve your score. With consistent financial discipline, better credit terms and opportunities are well within reach.