690 Credit Score: Is it Good or Bad?

With a credit score of 690, you are generally in the range between poor and good, depending on the credit bureau's assessment. While it demonstrates responsible credit behaviour, it also highlights areas that may require improvement. With consistent effort and smart financial habits, a 690 score can be improved, unlocking better credit opportunities and financial advantages.

Credit bureaus in India assess scores using different scales, which can affect how a 690 CIBIL score is classified. Here’s a comparison:

A 690 credit score influences your financial opportunities in the following ways:

Moderate Loan Approvals

While you are eligible for loans, lenders may scrutinise additional factors like income and repayment capacity before granting approval.

Higher Interest Rates

A score of 690 often attracts higher interest rates for personal loans, home loans, or car loans compared to borrowers with excellent scores.

Limited Access to Premium Credit Cards

You may qualify for standard credit cards, but premium cards with enhanced rewards and benefits may require a higher score.

Moderate Credit Limits

A 690 score may result in lower credit limits, which can restrict financial flexibility for large purchases.

Insurance Premium Impact

Some insurers factor in credit score when determining premiums. A 690 score might not secure the best rates.

Need for Stronger Financial Credentials

Lenders may require additional documentation or collateral to mitigate the perceived risk associated with a 690 score.

Improving a 690 credit score requires strategic financial management and a commitment to good practices.

 

Here are actionable steps:

Avoid Excessive Credit Applications

Refrain from applying for multiple loans or credit cards in a short period, as frequent hard inquiries can lower your score.

Monitor Your Credit Report

Check your credit report regularly for errors or inaccuracies. Dispute any discrepancies promptly to avoid negative impacts.

Pay Down Existing Debts

Clearing outstanding debts systematically not only improves your credit utilisation ratio but also enhances your creditworthiness.

Make Payments on Time

Ensure all EMIs, credit card bills, and other financial obligations are paid on or before their due dates. Timely payments are critical for improving your score.

Reduce Credit Utilisation

Aim to keep your credit utilisation below 30% of your available limit. For example, if your credit limit is ₹1,00,000, try to use less than ₹30,000.

Maintain a Healthy Credit Mix

A balanced portfolio of secured loans (e.g., home loans) and unsecured loans (e.g., personal loans) reflects well on your credit profile.

Retain Older Credit Accounts

Long-standing accounts with a positive payment history increase your credit age, which positively affects your score.

Use Secured Credit Cards or Builder Loans

If you want to strengthen your profile further, consider secured credit cards or credit builder loans and make timely payments.

A 690 credit score indicates decent financial behaviour, yet there is opportunity for growth. By paying bills on time, managing credit utilisation, and monitoring your credit report, you can steadily improve your score. Progressing beyond 690 can grant you access to better loan terms, premium credit cards, and greater financial flexibility, paving the way for long-term financial success.