680 Credit Score: Is it Good or Bad?

A credit score of 680 falls into either the poor or good category, depending on the credit bureau's classification. While it reflects decent financial behaviour, it leaves room for improvement. Maintaining consistent financial discipline can help you move closer to the excellent range, opening up more favourable credit opportunities.

A 680 CIBIL score is generally classified as a good credit score in India. It sits just above the ‘fair’ range, (usually 580-669), and within the ‘good’ category (670-739). Lenders see a 680 score as an indicator that you are a reasonably reliable borrower, but not without some risk. This score suggests you’ve maintained fair credit behavior, though there’s room to improve for better loan terms. While many financial institutions may approve loans for you, interest rates and credit limits might not be as attractive as those given to borrowers with scores above 700. Thus, a 680 score opens doors but not all premium ones.

Credit bureaus use varying scoring models, which can slightly affect how a CIBIL score 680 is perceived. Here's an overview:

Yes, you can get a personal loan with a 680 CIBIL score, though it’s considered a borderline or low score. Lenders may still approve loans but often with stricter terms, higher interest rates, or lower amounts. The loan approval and terms largely depend on the type of lender. Banks tend to be more conservative, whereas NBFCs (Non-Banking Financial Companies) and fintech lenders may be more flexible. Your income strength, employment stability, and overall financial health can also influence approval chances at this score level. Offering collateral or a co-applicant can further improve loan eligibility.

Tips to Improve Loan Approval Chances

Here are strategies you can follow to can enhance your credibility and improve loan terms even if your score is within the fair or low range:

• Add a co-applicant for a stronger application: Including a co-applicant with a higher credit score or stable income can significantly boost your loan approval prospects.

• Offer collateral to reduce lender risk: Pledging assets like fixed deposits or property as collateral assures lenders and can improve your eligibility for better loan terms.

• Present robust income proofs: Demonstrate your repayment capacity by maintaining and providing comprehensive proof of stable income and employment.

• Pay existing debts on time: A consistent record of timely repayments strengthens your credit profile and reassures lenders of your financial responsibility.

• Maintain a low credit utilisation ratio: Keeping your credit utilisation below 30% signals disciplined credit use and positively impacts your creditworthiness.

Getting a credit card with a 680 score is possible, but your options will be limited. Banks and issuers tend to prefer applicants with good (670+) or very good scores for unsecured credit cards. However, you can still qualify for secured credit cards, or cards from smaller banks and retail-focused issuers that cater to fair credit scores. Smart application choices like applying with banks where you have an existing relationship can improve chances. 

Credit Card Types for Fair Scores

Here are the credit card types that allow you to access credit despite a fair score and can help you build your credit history responsibly:

• Secured Credit Cards: Secured credit cards are issued against a refundable fixed deposit that serves as collateral with the bank. Your credit limit is typically a percentage of the deposit, reducing risk for the lender. These cards give you an opportunity to build or repair your CIBIL score through responsible usage and timely repayments.
  

• Low-limit Retail Cards: Low-limit retail cards are usually offered by specific stores or brands and tend to have lower eligibility requirements. Credit limits are modest, making them more accessible for individuals with fair or average credit.
  

• Credit-builder Cards: Credit-builder cards are specifically designed for those looking to establish or rehabilitate their credit profile. They often come with low thresholds for approval, limited features, and may carry higher interest rates.

What to Expect: Limits, Charges & Conditions

Your credit card experience may be restrictive but provides an opportunity to prove creditworthiness and raise your score for future upgrades. Here’s how:

• Lower credit limits compared to higher-tier cards.

• Higher annual fees or membership charges in some cases.

• Limited rewards and cashback programs or reduced benefits.

• Tighter scrutiny on payment timeliness and usage patterns.

How to Improve Eligibility

These approaches help maximise approval chances even with a modest CIBIL score:

• Apply for credit cards with banks where you have a strong existing relationship
  (savings accounts, loans).

• Provide clear income and employment proofs to demonstrate repayment ability.

• Start with small credit limits and maintain impeccable repayment history to build trust.

• Avoid multiple credit applications in a short period to prevent negative credit inquiries.
  

A thorough CIBIL credit report includes components such as:

Accounts

Details of current credit accounts, loans, credit cards, and their types, limits, balances.

Repayment History

Monthly payment status showing timely or delayed payments.

Credit Inquiries

Records of recent credit checks and loan/card applications.

Credit Utilisation Ratio

The percentage of total credit limits currently used.

Personal Details

Basic identity info like name, address, date of birth to verify borrower identity.

A 680 CIBIL score is categorised as fair. While this score may limit access to premium financial products, you can still qualify for a range of loans on Bajaj Markets. Though typically with stricter terms or higher interest rates compared to those for higher credit scores. Here are the various types of loans that can be obtained:

Home and Auto Loans

With a 680 CIBIL score, you are generally eligible to apply for a home loan on Bajaj Markets. Lenders may designate this score as average, so loan approval is possible but may come with higher interest rates or lower Loan-to-Value (LTV) ratios.

Consumer Loans and Buy Now Pay Later (BNPL)

While the ideal credit score for consumer durable loans is 750 or higher, certain lenders on Bajaj Markets may still approve applications from individuals with lower scores. For Buy Now, Pay Later (BNPL) options, a 680 CIBIL score may grant access to select offers. 

Insurance Premium Financing

Although less common than standard loans, insurance premium financing may be available to applicants with fair credit through Bajaj Markets . Lenders will closely review your credit behaviour and may offer premium financing at a higher interest rate, or limit this service to applicants with additional income documentation. 

Improving a 680 credit score requires consistent effort and attention to financial habits. Here are some actionable tips:

Stay Calm as Scores Are Repairable

A 680 credit score is a solid starting point but definitely repairable and improvable. The key is to remain patient and consistent. By making timely payments, reducing outstanding debt, and avoiding rash credit moves, you can steadily elevate your score. 

Track Progress with Free Tools

Utilise free credit monitoring tools and apps to regularly check your credit report and score updates. These platforms help you spot errors, monitor usage, payment history, and hard inquiries. 

Seek Professional Advice

If you’re unsure how to best improve your score, consider consulting credit counselors or financial advisors who specialise in credit management. Professionals can analyse your unique credit profile, identify issues such as discrepancies or overleveraging, and help create a personalised, effective plan. 

Pay All Bills on Time

Timely payments for credit card dues, EMIs, and other financial obligations are crucial. Even a single missed payment can negatively affect your score.

Reduce Credit Utilisation

Aim to keep your credit utilisation ratio below 30%. For example, if your total credit limit is ₹1 Lakh, use less than ₹30,000.

Avoid Frequent Credit Applications

Multiple hard inquiries from frequent credit applications can lower your score. Apply for credit only when necessary.

Monitor Your Credit Report Regularly

Review your credit report for inaccuracies or errors. Dispute incorrect entries promptly to avoid unnecessary score reductions.

Pay Down Existing Debts

Systematically reduce outstanding balances to improve your debt-to-income ratio and demonstrate better creditworthiness.

Maintain a Healthy Credit Mix

Having a mix of secured loans (e.g., home loans) and unsecured loans (e.g., personal loans) reflects balanced credit usage and positively impacts your score.

Retain Older Credit Accounts

Long-standing accounts with positive payment histories contribute to your credit age, which is a crucial factor in your credit score.

Avoid Closing Credit Cards

Closing credit cards, especially those with high credit limits, can reduce your overall credit limit and increase your utilisation ratio.

A 680 credit score indicates room for improvement. By adopting responsible financial habits—making timely payments, keeping credit utilisation low, and monitoring your credit report—you can gradually boost your score. Improving a 680 credit score can open the door to better loan terms, lower interest rates, and premium financial products, ensuring greater financial flexibility in the long run.