724 Credit Score: Good or Bad?

A 724 credit score is a strong indicator of your creditworthiness, often considered good in the financial world. While it may not fall into the excellent range, it still offers access to favourable terms on loans, credit cards, and other financial products. Knowing where your CIBIL score 724 stands across different credit bureaus and understanding how to maintain or improve it can help you unlock better financial opportunities.

A 724 credit score is assessed differently across credit bureaus based on their scoring models. While it’s generally categorised as good, some bureaus may view it as closer to fair. Here’s how a CIBIL score 724 compares across major credit bureaus in India:

A 724 credit score provides several advantages, making it easier to access and manage credit effectively:

Easier Loan Approvals

Lenders are more likely to approve loans without lengthy verification processes.

Competitive Interest Rates

While not the lowest, you may secure favourable interest rates on personal loans, home loans, and car loans.

Access to Decent Credit Cards

You may qualify for credit cards with reasonable rewards, cashback, and benefits.

Higher Credit Limits

Banks and financial institutions may offer higher spending limits on your credit cards.

Better Loan Terms

Your 724 CIBIL score allows you to negotiate for flexible repayment tenures and conditions.

Reduced Rejection Risk

A score in this range minimises the chances of loan or credit card rejections.

Improved Financial Trustworthiness

A CIBIL score 724 demonstrates responsible credit management, building trust with lenders.

If your credit score is 724, maintaining or improving it further requires consistent financial discipline. Here are some strategies:

Timely Payments

Always pay your loan EMIs and credit card bills before the due date to maintain a positive payment history.

Monitor Credit Utilisation Ratio

Keep your credit utilisation below 30% of your available limit. For instance, if your credit limit is ₹1,00,000, aim to spend no more than ₹30,000.

Check Your Credit Report Regularly

Ensure there are no errors or inaccuracies in your credit report. Correcting discrepancies can improve your score.

Limit New Credit Applications

Avoid applying for multiple loans or credit cards in a short span, as this can lead to hard inquiries that lower your score.

Maintain a Healthy Credit Mix

Use a combination of secured (e.g., home loans) and unsecured (e.g., personal loans) credit to showcase your ability to handle different types of debt.

Reduce Outstanding Debts

Lower your existing liabilities to improve your debt-to-income ratio and enhance your creditworthiness.

Keep Old Credit Accounts Open

Older accounts contribute to your credit history length, which positively impacts your score.

Seek Professional Advice

Consult a financial expert for tailored advice to optimise your credit profile further.

A 724 CIBIL score is a solid foundation for accessing various financial products. While it already categorises you as a reliable borrower, striving to improve your score can unlock additional benefits like lower interest rates and access to premium credit cards. Consistent financial discipline and smart credit management are key to enhancing your creditworthiness.