698 Credit Score: Is It Good or Bad?

A credit score of 698 shows reliable financial habits with a few areas for improvement. This score typically allows access to various financial products, but lenders may still view it as slightly risky, leading to stricter terms or unfavourable interest rates. 

 

The score reflects a solid foundation of financial management but may suggest room for refinement in areas like credit utilisation or payment consistency. Addressing these aspects can help you unlock better credit terms, premium credit products, and more.

Each credit bureau evaluates credit scores using its own criteria and ranges. Here’s how a 698 credit score is interpreted across India’s major credit bureaus:

While a 698 credit score suggests stability, lenders may still impose slightly higher interest rates or stricter conditions compared to borrowers with higher scores.

A 698 credit score has a mix of advantages and limitations. Here’s how it impacts your financial opportunities:

Better Access to Loans

A CIBIL score of 698 is likely to result in loan approvals, but the terms might include higher interest rates or stricter repayment conditions.

Competitive Interest Rates

Interest rates for borrowers with a 698 credit score are generally moderate. While not the lowest, they are still better than those offered to lower-score borrowers.

Standard Credit Card Eligibility

You can qualify for standard credit cards and potentially some entry-level premium cards. Exclusive cards with great reward systems and other benefits may still require a higher score.

Reasonable Insurance Premiums

Insurers may offer moderate premiums based on your 698 score, reflecting average risk. Improving your score can help you secure lower premiums.

Easier Rental Agreements

A 698 credit score makes securing rental properties less challenging. This is because landlords are more likely to view your credit profile favourably if you have a good credit score.

Better Negotiating Power

This score provides moderate leverage to negotiate better terms on loans and credit cards. However, do note that borrowers with higher scores have greater flexibility.

Minimal Concerns for Employers

Certain industries may review credit scores during background checks. A 698 CIBIL score is unlikely to raise concerns and may demonstrate financial responsibility.

Improving a 698 credit score is possible with disciplined repayment behaviour and good credit management. Here’s how you can strengthen your credit profile:

Make Timely Payments

Ensure all your payments are made on time, including credit card bills, loan EMIs, and utility bills. Payment history has the most significant impact on your credit score.

Lower Your Credit Utilisation

Keep your credit card balances below 30% of your credit limit. Let’s say your total credit limit is ₹3 Lakhs. In this case, aim to use less than ₹90,000.

Avoid Making Multiple Credit Applications

Applying for multiple credit cards or loans in a short period of time can lead to hard inquiries.  These can temporarily lower your score. So, focus on managing existing credit responsibly.

Monitor Your Credit Report

Review your credit report for discrepancies, such as unrecognised accounts or incorrectly reported late payments. Dispute errors promptly with the credit bureau.

Pay off Your Existing Debt

Reducing outstanding debts, especially high-interest ones, improves your debt-to-income ratio and positively affects your credit score.

Maintain a Diverse Credit Portfolio

A balanced mix of credit types, such as credit cards, personal loans, and secured loans, demonstrates responsible financial management. However, avoid unnecessary debt.

Retain Older Credit Accounts

Older accounts with a positive history contribute to your credit age, which is an important factor in your score. Avoid closing these accounts unnecessarily.

Use a Secured Credit Card

If you find it challenging to access premium credit products, a secured credit card linked to a fixed deposit can help rebuild your credit responsibly.

Consult an Expert

If you’re unsure about the best strategies for improving your score, seek guidance from a financial expert who can provide tailored advice.

A 698 CIBIL score represents good creditworthiness, offering easy access to credit. However, there is still room for improvement. By focusing on timely payments, reducing credit utilisation, and maintaining a balanced credit profile, you can move into the good credit range. With consistent effort, you can get better credit terms and more borrowing opportunities.