700 Credit Score: Is it Good or Bad?

A 700 credit score is considered good, reflecting responsible credit management and a steady repayment history. While it may not be exceptional, it still qualifies you for various credit products at competitive terms. Learn more about this score and what it means across different credit bureaus to better understand your creditworthiness.

Each credit bureau has a unique scoring model based on which a score range is set. Thus, these ranges may differ from one bureau to another.  Here is a breakdown of what a score of 700 means across the 4 prominent credit bureaus of India:

A 700 credit score comes with several advantages, which are as listed below:

• Lenders view a 700 CIBIL score as a sign of financial reliability, increasing your chances of approval for loans and credit cards
  

• With a good credit score, you may qualify for lower interest rates on loans and credit cards, saving money in the long run
  

• Financial institutions are more likely to offer higher credit limits, providing greater financial flexibility
  

• A good credit score gives you leverage to negotiate better terms, such as reduced processing fees or flexible repayment options
  

• Applications are processed faster as lenders perceive less risk with a higher credit score
  

• Many premium credit cards with exclusive rewards and benefits are accessible to those with a good credit score
  

• A good score can lead to easier approval for rental agreements and home loans with favourable terms

Maintaining and improving your credit score can unlock multiple financial options. Here’s how:

• Consistently paying your credit card bills and loan EMIs by their due dates helps maintain a strong payment history

• Aim to use less than 30% of your total credit limit. Lower utilisation demonstrates responsible credit management and positively impacts your score.

• Avoid applying for multiple loans or credit cards within a short time. Each application triggers a hard inquiry, which could lower your score temporarily.

• Check your credit report periodically to identify errors or fraudulent activities. Dispute inaccuracies promptly to ensure your score reflects accurate information.

• Maintaining older accounts open helps lengthen your credit history, which is beneficial for your credit score

• Using different types of credit, like credit cards, personal loans, and mortgages, can benefit your credit profile. It shows lenders you can handle various forms of credit responsibly.

• Reducing existing debt improves your credit utilisation ratio and reflects positively on your financial discipline

• If you have a limited credit history, a secured credit card can help build a track record of timely payments

By following these practices, you can maintain your 700 credit score and work towards a higher score for even better financial opportunities.

Maintaining and improving a 700 CIBIL score requires consistent financial discipline and smart credit usage. By adopting these habits, you can unlock better credit opportunities and enjoy more favourable financial terms. Keep track of your credit score and details by frequently checking the score and report. Get started by conducting a free CIBIL score check on Bajaj Markets. You can also use the official app to access a customised credit health report for a complete understanding of your credit profile. The insights from this can be used to take the required measures to improve your creditworthiness.