695 Credit Score: Good or Bad?

A 695 credit score is considered a moderate credit score, with its classification varying among credit bureaus. TransUnion CIBIL categorises it as poor, while Experian and Equifax deem it good, and CRIF High Mark classifies it as excellent. 

 

This variability reflects different risk perceptions across bureaus. A 695 CIBIL score indicates financial stability with room for improvement to access more favourable terms and benefits.

Here’s how a 695 credit score is categorised across India’s credit bureaus:

A 695 credit score impacts your financial opportunities in the following ways:

1. Loan Approvals with Higher Rates

While loans may be approved, a 695 CIBIL score often results in higher interest rates and stricter terms compared to higher scores

2. Limited Access to Premium Credit Cards

With a credit score, you may qualify for standard credit cards, but premium options offering significant rewards or benefits might not be accessible

3. Increased Documentation Requirements

Lenders might require additional verification, such as income proof or collateral, to offset the risk associated with a 695 CIBIL score

4. Insurance Premiums Impacted

Some insurers consider credit scores when determining premiums, and a 695 credit score might result in higher costs

5. Moderate Financial Standing

While better than lower scores, a CIBIL score signals the need for improvement to unlock more favourable credit terms

Improving a 695 CIBIL score requires financial discipline and consistent effort. 

 

Here’s how:

1. Make Payments on Time

Timely repayment of EMIs, credit card bills, and other dues is crucial for maintaining or improving your 695 credit score

2. Monitor Your Credit Report Regularly

Review your credit report periodically to identify and correct errors that may negatively impact your 695 CIBIL score

3. Maintain Low Credit Utilisation

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

4. Avoid Multiple Credit Applications

Refrain from applying for multiple loans or credit cards in a short time frame, as this can lead to hard inquiries that may lower your credit score

5. Diversify Your Credit Portfolio

Having a mix of secured (e.g., car loans) and unsecured (e.g., personal loans) credit accounts reflects financial stability and can boost your CIBIL score

6. Pay Down Existing Debt

Reducing outstanding debts improves your debt-to-income ratio, which positively impacts your 695 credit score

7. Retain Old Accounts

Older accounts with positive repayment histories add to your credit age, benefiting your 695 CIBIL score over time

A 695 credit score indicates average financial stability with varying classifications across bureaus. By maintaining timely payments, reducing credit utilisation, and regularly monitoring your credit report, you can improve your CIBIL score. Progressing to a higher credit score range ensures access to better loan terms, lower interest rates, and premium financial products.