697 Credit Score: Is It Good or Bad?

A credit score of 697 places you just shy of the good credit range. This makes it a favourable score that reflects responsible credit management with minor areas for improvement. While this score opens the door to a variety of credit opportunities, lenders may still perceive some risk. This may result in slightly higher interest rates or less flexible loan terms. 

 

With focused effort, a 697 score can easily transition into the very good or excellent category. Addressing key factors like credit utilisation and timely payments can help improve your score, enhancing your credit profile and financial flexibility.

Credit bureaus in India - TransUnion CIBIL, Experian, Equifax and CRIF High Mark - use slightly varied scoring models. Thus, the interpretation of a 697 score may differ slightly. Here’s the breakdown:

This score positions you on the cusp of having an ideal credit. Thus, a little more effort can lead to more favourable terms and conditions for loans and credit cards.

A 697 CIBIL score offers access to various credit products with moderate limitations. Here’s how it might impact your financial decisions:

Easier Loan Approvals

Lenders are likely to approve loans for a 697 score, though the terms may include slightly higher interest rates or stricter repayment conditions.

Better Interest Rates

Interest rates for borrowers with a 697 CIBIL score may not be the lowest, but they are more competitive compared to those with lower scores.

Access to Standard Credit Cards

You can qualify for standard and some premium credit cards, though the most exclusive rewards cards may still require a score in the good or excellent range.

Reasonable Insurance Premiums

Insurers are likely to view your credit score as moderate risk, offering reasonable premiums for policies like health, life, or motor insurance.

Accessibility of Rental Property 

With a 697 credit score, landlords are less likely to scrutinise your financial profile, making rental agreements easier to secure.

Improved Negotiation Power

While not as strong as a very good or excellent credit score, a 697 score gives you moderate leverage to negotiate better terms on loans and credit cards.

Improving a 697 credit score is well within reach and requires disciplined financial habits. Here’s how you can take your score into the good range:

Make On-time Payments

Ensure all your credit card bills, loan EMIs, and utility payments are made on time. Payment history is the single most important factor in credit score calculation.

Optimise Your Credit Utilisation

Keep your credit card balances below 30% of your total credit limit. For example, if your total limit is ₹2 Lakhs, maintain outstanding balances under ₹60,000.

Avoid Multiple Credit Applications

Every credit application results in a hard inquiry, which can temporarily lower your score. Apply for credit only when necessary and manage existing accounts effectively.

Review Your Credit Report Regularly

Check your credit report for inaccuracies, such as unrecognised accounts or incorrectly reported late payments. Dispute errors promptly to prevent unwarranted score deductions.

Clear High-interest Debts

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

Diversify Your Credit Portfolio

Having a mix of credit types, such as credit cards, secured loans, and unsecured loans, demonstrates responsible credit management. However, only take on debt you can manage responsibly.

Avoid Closing Your Older Credit Accounts

Long-standing accounts with a positive payment history contribute to your credit age, which is a key factor in your credit score. Avoid closing these accounts unless necessary.

Leverage Secured Credit Options

If you’re unable to qualify for premium credit products, consider secured options like a credit card linked to a fixed deposit. Responsible use of these products can help boost your credit score.

Seek Expert Advice

A credit counsellor or financial advisor can help you identify areas for improvement and create a plan to achieve your credit goals effectively.

A 697 credit score reflects good creditworthiness, providing reasonable access to financial products with room for improvement. By addressing key factors like timely payments, reducing credit utilisation, and maintaining a diverse credit mix, you can improve your score. With consistent financial discipline, better credit terms and borrowing opportunities become within reach.