688 Credit Score: Good or Bad?

A 688 credit score represents moderate financial stability, with its categorisation varying across credit bureaus. While Experian, Equifax, and CRIF High Mark classify it as good, TransUnion CIBIL categorises it as poor. This divergence highlights the importance of understanding how each bureau assesses creditworthiness. A 688 CIBIL score may qualify you for financial products but not at the most favourable terms.

Here’s how a 688 credit score is classified by India’s credit bureaus:

A 688 credit score has the following implications:

1. Higher Loan Interest Rates

While you may secure loans, a CIBIL score 688 means you might attract higher interest rates due to perceived risk

2. Limited Premium Credit Options

You may qualify for standard credit cards, but premium cards with high rewards, cashback, or travel benefits may not be accessible with a credit score

3. Stringent Approval Requirements

Lenders may impose stricter conditions, such as additional documentation or higher down payments, for borrowers with a 688 CIBIL score

4. Room for Improvement

A credit score signals a need for improvement to achieve access to better financial products and terms

5. Possible Impact on Insurance Premiums

Certain insurers might consider your 688 credit score when calculating premiums, potentially leading to higher costs

Improving a 688 CIBIL score requires financial discipline and strategic efforts. Here’s how you can enhance your score:

1. Make Timely Payments

Paying credit card bills, EMIs, and other dues on or before their due dates is critical to maintaining and improving your 688 credit score

2. Monitor Your Credit Report

Check your credit report regularly for inaccuracies or errors that may negatively affect your 688 CIBIL score. Rectify discrepancies promptly.

3. Reduce Credit Utilisation

Keep your credit utilisation ratio below 30%. For example, if your credit limit is ₹1 Lakh, use no more than ₹30,000 to maintain a healthy score.

4. Limit Credit Applications

Avoid multiple credit applications in a short period, as each hard inquiry can slightly lower your 688 credit score

5. Diversify Credit Accounts

Maintain a mix of secured loans (like home loans) and unsecured loans (like personal loans) to showcase responsible credit behaviour

6. Lower Existing Debt

Reducing your outstanding debt improves your debt-to-income ratio, positively impacting your CIBIL score

7. Retain Older Credit Accounts

Accounts with a long and positive credit history contribute to your credit age, benefiting your 688 credit score

A 688 credit score provides moderate access to financial products, though its classification varies across credit bureaus. Strengthening your financial habits—such as timely payments and low credit utilisation—can significantly improve your 688 CIBIL score, unlocking better terms and premium financial opportunities. Consistency is key to progressing toward an excellent credit score range.