721 Credit Score: Good or Bad?

A 721 credit score shows that you handle credit responsibly, but how it’s viewed depends on the credit bureau. TransUnion CIBIL rates it as fair, Experian and Equifax consider it good, and CRIF High Mark categorises it as excellent. While a 721 CIBIL score makes you eligible for many financial products, improving it further could help you get better rates and benefits.

Here’s how different credit bureaus categorise a 721 credit score:

A 721 credit score offers the following benefits:

1. Easier Loan Approvals

Lenders see a 721 CIBIL score as low to moderate risk, making it easier to get loans approved

2. Competitive Interest Rates

You can qualify for loans with decent interest rates, but a higher score might get you better terms

3. Eligibility for Credit Cards

With a 721 credit score, you can apply for credit cards that offer rewards, cashback, and reasonable spending limits

4. Financial Flexibility

A 721 CIBIL score allows access to emergency funds like credit lines or personal loans

5. Negotiation Opportunities

You may be able to negotiate better loan terms, such as lower fees or more flexible repayment options, with a 721 credit score

Here’s how you can keep or improve your 721 CIBIL score:

1. Pay Bills on Time

Pay your credit card bills, EMIs, and other payments before the due date to avoid lowering your score

2. Keep Credit Utilisation Low

Try not to use more than 30% of your credit limit. For example, if your credit limit is ₹1 Lakh, keep spending under ₹30,000.

3. Check Your Credit Report

Review your credit report regularly to spot and correct any mistakes that might harm your 721 CIBIL score

4. Avoid Too Many Credit Applications

Applying for several loans or credit cards in a short time can lower your score temporarily due to hard inquiries

5. Keep Old Accounts Active

Older accounts with good payment histories add to your credit age and help boost your credit score

6. Reduce Existing Debt

Paying off outstanding debts improves your debt-to-income ratio, which positively affects your 721 credit score

7. Use a Mix of Credit Types

Having both secured loans (e.g., home loans) and unsecured loans (e.g., personal loans) shows lenders that you can manage credit responsibly

A 721 credit score shows good financial behaviour but has room for improvement. By paying bills on time, keeping credit utilisation low, and checking your credit report regularly, you can boost your 721 CIBIL score. A higher score can help you get better interest rates and premium financial products.