675 Credit Score: Is it Good or Bad?

A 675 CIBIL score falls in the ‘fair’ category, typically ranging from 650 to 699. While it is not considered a poor score, it doesn’t fall into the ‘excellent’ range either. Lenders may view a score of 675 with some caution, as it suggests a moderate level of credit risk. Although it is possible to get credit approval with this score, borrowers might face less favourable terms, such as higher interest rates and fewer available options. 

 

Approval largely depends on the lender’s internal policies, the type of credit being applied for, and other financial factors such as income stability and existing debt. To improve access to better loan terms, borrowers with a 675 score may need to demonstrate timely payments, prudent credit usage, and a stable financial record. 

Credit bureaus in India may interpret a 675 score differently, although the general range remains similar across them. Each bureau uses its own data sources and credit models, which can slightly alter how a score is viewed. Below is a breakdown of how a 675 score is interpreted by major Indian credit bureaus: 

Credit Bureau	Score Range	Interpretation of 675 Credit Score
TransUnion CIBIL	300 – 900	A 675 score is considered fair and may make you eligible for credit, though certain conditions may apply.
Experian	300 – 900	This score is also viewed as fair and you might qualify for credit, but additional checks could be required.
CRIF High Mark	300 – 900	A 675 score falls within the average range, meaning that credit may be offered, but with caution.
Equifax	300 – 900	The score is classified as moderate, and stronger documentation might be needed to secure credit.

Each credit bureau’s distinct approach can lead to slight variations in how a 675 score is perceived.

Consider Smaller Loan Amounts: If you apply for a smaller loan amount, you might increase your chances of approval with a 675 credit score, as lenders may feel more comfortable approving a lower sum. Demonstrate Positive Recent Credit Behaviour: If you have made timely repayments in the last 6 to 12 months, make sure to highlight this. Positive credit behaviour can go a long way in strengthening your loan application. Diversify Your Credit Mix: Having a well-rounded credit mix, such as a combination of secured and unsecured credit, shows lenders that you can manage different types of debt responsibly. By focusing on these areas, you may not only improve your chances of securing a personal loan but also receive more favourable terms. Even though these steps do not guarantee approval, they can improve your overall financial profile and enhance your eligibility.

Lender Eligibility Criteria

When applying for a personal loan, lenders assess more than just the credit score. Each lender has its own internal policies, but the key factors they generally consider include: 

• Income Stability: Lenders prefer applicants who demonstrate a steady income. Having a regular salary or consistent business earnings can improve your chances. 
• Employment History: A stable job history, with a long period in the same role or company, may increase your chances of loan approval. 
• Debt-to-Income Ratio: A lower ratio, where your debt obligations are proportionally smaller compared to your income, is favourable as it suggests a better repayment capacity. 
• Credit History: While a 675 score falls in the ‘fair’ range, having a clean record of recent repayments, particularly over the last few months, can enhance your chances. 
• Existing Liabilities: If you have fewer ongoing EMIs or other debts, lenders may feel more confident in your ability to take on additional debt. 
• Documentation: Complete and accurate documentation, including proof of identity, income, and address, is crucial to ensure the approval process runs smoothly.

Personal Loan Terms with a 675 CIBIL Score

If you are approved for a personal loan with a 675 credit score, the terms may differ from those available to applicants with higher scores. Some common terms may include:

• Interest Rates: Since a 675 score is considered fair, lenders might offer slightly higher interest rates to mitigate the perceived credit risk.
• Loan Amount: You may be offered a lower loan amount, as lenders might want to limit their risk exposure, especially if they view your score as indicating moderate risk.
• Loan Tenure: The repayment period may be shorter compared to what would be offered to a borrower with a higher score.
• Processing Time: Your application might undergo more detailed scrutiny, which can lead to a longer approval process.
• Collateral Requirements: Although personal loans are typically unsecured, some lenders may require collateral for better terms or higher loan amounts.
• Prepayment Flexibility: The terms regarding early repayment or foreclosure may vary from lender to lender, depending on their policies and your overall financial profile.

Tips to Improve Loan Approval Chances

If you have a 675 credit score and want to improve your chances of getting a personal loan approved, there are several steps you can take. While these steps don’t guarantee approval, they can increase your likelihood of securing better loan terms:

• Maintain a Regular Income: A steady income stream, particularly if it’s documented through salary credits or business earnings, builds lender confidence and shows your ability to repay. 
• Reduce Your Debt: Try to pay down existing debts or credit card balances. A lower debt-to-income ratio is attractive to lenders and can demonstrate your financial discipline.
• Limit Loan Applications: Avoid applying for too many loans or credit cards within a short time. Each loan inquiry can slightly lower your score, and multiple enquiries in a short period may make lenders cautious. 
• Provide Complete Documentation: Ensure that all your documentation is up to date and correct. Missing or inaccurate paperwork can delay the approval process.
• Apply with a Co-Applicant: If possible, consider applying with a co-applicant who has a better credit score or a higher income. This could improve your chances of loan approval. 
• Consider Smaller Loan Amounts: If you apply for a smaller loan amount, you might increase your chances of approval with a 675 credit score, as lenders may feel more comfortable approving a lower sum. 
• Demonstrate Positive Recent Credit Behaviour: If you have made timely repayments in the last 6 to 12 months, make sure to highlight this. Positive credit behaviour can go a long way in strengthening your loan application. 
• Diversify Your Credit Mix: Having a well-rounded credit mix, such as a combination of secured and unsecured credit, shows lenders that you can manage different types of debt responsibly. 

 

By focusing on these areas, you may not only improve your chances of securing a personal loan but also receive more favourable terms. Even though these steps do not guarantee approval, they can improve your overall financial profile and enhance your eligibility.

Securing a credit card with a 675 CIBIL score is certainly possible. While this score falls within the ‘fair’ range, it may limit some of your options compared to those with higher scores. However, with the right strategy and a well-managed credit profile, your chances of approval can significantly improve. By carefully selecting the right type of card and demonstrating strong financial behaviour, you can boost your eligibility. 

Credit Card Types for Fair Scores

If your credit score is around 675, you may find the following types of credit cards suitable for your needs: 

• Secured Credit Cards: These cards require you to provide a fixed deposit as collateral. Your credit limit is typically linked to the amount of the deposit. These cards can be a good choice to help you build or improve your credit score over time. 
• Basic Unsecured Cards: Some lenders may offer low-limit, simple unsecured cards. These cards come with basic features and can help you manage credit use while promoting good repayment habits. 
• Credit-builder Cards: Specifically designed for individuals with average credit scores, these cards often come with straightforward terms. They focus on helping users gradually improve their credit profile through disciplined use. 
• Retail or Co-branded Cards: These cards are often linked to specific stores or retail chains and may offer benefits like shopping discounts. Approval may be easier for these cards, but they typically come with limited usage options. 

What to Expect: Limits, Charges & Conditions

When applying for a credit card with a 675 score, it’s important to understand the terms you may face. Here’s what you can expect: 

• Lower Credit Limits: With a 675 score, you might receive a modest credit limit initially. This is because lenders view this as a moderate-risk profile and prefer to keep credit exposure limited. 
• Annual or Joining Fees: Some credit cards may come with annual or joining fees. However, fee-waiver options might be available if you meet certain conditions or spend a minimum amount within a specified period. 
• Higher Interest Rates: Credit cards with a 675 score may come with higher interest rates on unpaid balances, as lenders view this as an indication of moderate credit risk. 
• Limited Reward Options: Cards available for those with a 675 score might offer fewer benefits such as cashback or reward points. These cards are primarily designed to provide access to credit rather than offer perks. 
• Fewer Upgrade Opportunities: If you start with a card at this score level, it may be more challenging to get upgrades to higher credit limits or premium benefits until your credit score improves. 

How to Improve Eligibility

Improving your chances of being approved for a credit card with a 675 credit score involves taking several financial steps. Here are a few strategies that may help: 

• Apply Through Your Primary Bank: If you have an existing savings or salary account with a particular bank, applying for a credit card with them might increase your approval chances. Your established relationship with the bank could work in your favour. 
• Show Regular Income Proof: Providing solid proof of a stable income, such as salary slips or business income statements, can strengthen your case. It assures lenders of your ability to meet repayment obligations. 
• Start with a Secured Credit Card: If you're new to credit or looking to rebuild your score, secured cards can be a great option. These are easier to obtain and can help you improve your credit score when used responsibly. 
• Limit Credit Card Applications: Avoid applying for multiple credit cards in a short period. Too many applications can negatively impact your credit score and decrease your chances of approval. 
• Use Credit Responsibly: Ensure that you pay all dues on time, including EMIs, credit card bills, and loans. Responsible use of credit shows lenders that you are reliable and can be trusted with more credit.
• Review Your Credit Report: Check your credit report regularly for any discrepancies or errors. Correcting inaccuracies can improve your score and provide a more accurate representation of your financial behaviour. 

By following these steps, you can increase your chances of approval for a credit card and may even unlock better terms as your credit score improves. 

Improving a CIBIL score of 675 or lower is achievable with consistent effort and sound financial habits. There are no quick fixes, but steady, disciplined steps can gradually raise your score and improve your eligibility for credit products.

Check Credit Reports Regularly for Errors

Regularly check your credit report for errors such as duplicate entries or outdated information. Even minor inaccuracies can harm your score. If you find any errors, promptly dispute them with the relevant bureau. Accurate credit reports are crucial for maintaining a good score.

Make Timely Debt Payments

Paying all your debts on time is one of the most effective ways to improve your score. Late payments can significantly lower your score. Set up reminders or use auto-debit options to ensure you never miss a payment. Timely payments build trust with lenders and improve your creditworthiness.

Reduce Credit Utilisation Ratio

Keep your credit card usage below 30% of your total available limit. High credit utilisation can suggest over-reliance on credit, which is seen as risky by lenders. By paying off balances and spreading usage across multiple cards, you can manage your ratio effectively.

Keep Older Credit Accounts Active

Avoid closing older credit accounts, even if you don’t use them often. These accounts contribute to your credit history length, which positively impacts your score. Lenders prefer borrowers with a long, stable credit history, so keeping such accounts open can improve your score.

Avoid Applying for Multiple Loans or Credit Cards

Each loan or credit card application results in a hard enquiry, which can lower your score. Too many applications in a short time may signal financial instability. Apply only when necessary, and compare offers first to minimise the impact on your score.

Track Progress with Free Tools

Use free Personal Finance Management (PFM) tools to track your credit behaviour. Financial platforms and mobile apps like Bajaj Markets offer such easy-to-use PFM tools. They can help you monitor spending, spot issues, and keep an eye on your credit score trends. These apps offer insights to improve your finances and boost your score over time. 

Diversify Your Credit Portfolio

A mix of credit types, such as a secured loan and a credit card, can enhance your score. However, focus on managing existing debts before taking on new types of credit. Gradual diversification, when necessary, will help you build a stronger credit profile.

Seek Professional Advice

If you’re unsure about how to improve your score, consider consulting a financial advisor or credit counsellor. They can assess your situation and suggest steps tailored to your needs. Expert advice can make the credit improvement process more effective and manageable.

By following these steps, you can improve your credit score and increase your chances of securing credit products with better terms.

A credit score above 750 offers better loan terms, quicker approvals, and lower interest rates. Moving from a 675 to 750+ is achievable with consistent, strategic financial steps. By managing credit usage, maintaining timely payments, and regularly tracking your progress, you can elevate your score within a few months.

Credit Utilisation and Credit Mix

Maintaining a credit utilisation ratio below 30% is key. This shows lenders that you are not overly reliant on credit. Additionally, diversifying your credit mix by having both secured (e.g., home loans) and unsecured credit (e.g., credit cards) can positively impact your score. A well-rounded credit profile demonstrates to lenders that you can manage various forms of debt responsibly.

Payment Discipline

Paying all your dues on time is essential. Whether it's a credit card or loan EMI, missing even one payment can harm your score significantly. To avoid this, set up reminders or use auto-pay for consistency. Over time, paying on time builds trust with lenders and strengthens your creditworthiness.

Timeframe to Improve

Improving your credit score is not an overnight process. However, with consistent effort, it can take anywhere from 3 to 9 months to move your score from 675 to 750+. The time required depends on your repayment history, credit mix, and any outstanding debts. Tracking progress regularly and staying disciplined will help you achieve a higher score faster.

Avoid Settling Loans

Settling loans for less than the total amount may appear as a negative mark on your credit profile, even if the lender agrees. It indicates past payment difficulties and can stay on your record for years. Instead, aim to fully repay your outstanding balance. Once repaid, request a No Objection Certificate (NOC) from the lender to show responsible behaviour. 

Monitor Your Credit Report

Regularly check your credit report to track improvements and identify any errors. Discrepancies, such as incorrect balances or outdated account statuses, can lower your score. Reporting any errors to the credit bureau will help ensure your score reflects accurate financial behaviour, improving your chances for approval in the future. 

Your CIBIL report offers a detailed snapshot of your credit history. Lenders refer to it while reviewing loan or credit card applications. Each section provides insights into your personal and financial background. Here's a simplified overview of what the report includes: 

Section	What It Covers
Profile Information	Shows your basic details like full name, date of birth, and official ID numbers (PAN, passport, etc.) shared by lenders for verification.
Contact Details	Lists up to four addresses, phone numbers, or email IDs, categorised as current, permanent, or work-related, to confirm your location stability.
Employment Details	Captures your job-related information, such as employer name and declared income at the time of credit application, helping assess repayment ability.
Account Information	Contains records of all your past and active credit accounts, with data on loan types, joint or individual ownership, overdue amounts, and repayment record.
Enquiry Information	Reflects when and why a lender checked your report, including the date and type of credit requested. Frequent checks may affect your score.
CIBIL Score	A three-digit score ranging between 300 and 900, based on your credit history and lender enquiries. Higher scores usually mean better credit standing.

A 675 credit score presents opportunities for improvement, especially if evaluated as poor by certain bureaus. Maintaining timely payments, monitoring your credit report, and reducing credit utilisation are critical for elevating your CIBIL score. Enhancing your score ensures better access to loans, lower interest rates, and eligibility for premium financial products.