685 Credit Score: Is It Good or Bad?

A credit score of 685 indicates a reasonably stable financial history but with room for improvement. While it does not hinder your access to new credit, it may lead to higher interest rates or reduced loan amounts. Understanding how a 685 score is evaluated and taking proactive steps to improve it can pave the way to better opportunities.

 

In India, credit scores are calculated by the 4 major credit bureaus - TransUnion CIBIL, Equifax, CRIF High Mark, and Experian. The score may represent a different financial status depending on the bureau which generates it. A 685 credit score typically reflects consistent financial habits with occasional lapses. These could include missed payments or high credit utilisation. Here’s everything you need to know about a score of 685.

A CIBIL score of 685 is generally classified as ‘fair’ and sits just below the ‘good’ range on India’s credit spectrum. It suggests moderate creditworthiness, meaning lenders see you as neither high risk nor ideal. While not bad, a score of 685 can lead to less favourable interest rates and limited loan or credit offers compared to scores above 700. Lenders may approve your applications, but interest rates could be higher and credit limits lower due to the moderate credit risk.

Credit bureaus in India classify credit scores using distinct ranges and methodologies. Here’s what a 685 credit score signifies across bureaus:

Although a 685 credit score reflects financial reliability, lenders may still impose slightly higher interest rates or limit loan amounts compared to borrowers with excellent scores.

Yes, it is possible for you to get a personal loan if you have a 685 CIBIL score. Many banks and NBFCs consider 685 as the minimum cutoff, but you may not get the best terms. The loan amount, interest rate, and approval speed can vary significantly based on your employer profile, income stability, and whether the lender is a private bank or NBFC (Non-Banking Financial Company). Those with higher, stable incomes or long job tenures may still get attractive offers, while others may face stricter conditions or be asked for additional security or a co-applicant.

Tips to Improve Loan Approval Chances

Have a look at the following ways to boost your credibility and secure better loan terms, even if your credit score is within the fair or low range:

• Apply with a co-applicant: Adding a co-borrower strengthens your profile and increases chances of approval.

• Offer collateral: Secured loans reduce lender risk and improve approval odds with better terms.

• Show strong income proofs: Demonstrating consistent, sufficient income reassures lenders of your repayment capacity.

• Limit recent enquiries: Too many applications can lower your score.

• Repay existing debts in a timely manner: Clearing loan EMIs and credit card bills by or before their due dates demonstrates responsible financial behaviour.

You can get a credit card in India with a 685 CIBIL score, but your options may be limited. Most banks reserve high-limit and premium cards for those with 750 or above. With 685, you may qualify for entry-level or secured cards, especially if you apply strategically and provide additional proofs.

Here are the types of credit cards that can help you access credit even with a fair score, while also enabling you to responsibly build your credit history:

• Secured credit cards: Issued against fixed deposits, increasing approval odds and credit limit based on the deposit.
  

• Low-limit or retail cards: Offered by select banks and retailers, usually with lower income and credit score requirements.
  

• Credit-builder cards: Designed to help improve your score, these have basic benefits and easy eligibility.

What to Expect: Limits, Charges & Conditions

Your initial credit card experience may come with certain limitations on a credit score of 685. But it also serves as a valuable chance to establish your reliability and improve your credit score for better card options in the future. Here’s what to expect:

• Credit limits tend to be lower than those offered by premium cards.

• Some cards may carry higher annual or membership fees.

• Rewards and cashback features are generally modest, with fewer benefits included.

• Lenders will closely monitor your repayment punctuality and card usage habits.

How to Improve Eligibility

The following steps help maximise approval chances even with a modest CIBIL score:

• Use banks with existing relationships: Apply where you already hold accounts or FDs for better odds.

• Show income proof: Salary slips or tax filings can boost your profile.

• Start small: Opt for entry-level cards, use responsibly, and then upgrade as your score improves.

A CIBIL report comprises the following main sections, each affecting your score and lending decisions:

• Accounts: Lists all your loans and credit cards, including status and repayment records over the past 36 months.

• Repayment history: Details timely or missed EMI and card payments; strong discipline here boosts your score.

• Credit inquiries: Shows lenders who have checked your credit due to applications, multiple recent checks can hurt your score.

• Utilisation ratio: The percentage of used credit versus total available; a high ratio can lower your score.

• Personal details: Includes your identification information, address, PAN or Aadhaar, and employment details.

A 685 CIBIL score gives you access to several mainstream loan and finance products on Bajaj Markets, though with varied conditions.

Home and Auto Loans

You may qualify for home and auto loans, but your interest rates could be comparatively higher, and maximum eligible loan amounts may be lower than for those with higher scores. Some NBFCs and banks may require larger down payments or co-applicants.

Consumer Loans and Buy Now Pay Later (BNPL)

Apply for consumer durable loans for electronics, appliances, or BNPL services on Bajaj Markets with a 685 score, though you may face limits on purchase amount and stricter repayment terms.

Insurance Premium Financing

Premium financing plans for insurance policies are usually available, as long as you demonstrate repayment capacity and have no recent major defaults. Approval speed and flexibility may improve if you have an existing relationship with the partner NBFC.

Steadily raising a 685 credit score depends on making disciplined financial decisions and adopting good money management practices. Explore these practical steps to help improve your score:

Stay Calm as Scores Are Repairable

A 685 score is fully repairable with consistent financial discipline. Missing EMIs or carrying high balances is not irreversible; steady improvement in habits can push your score above 700 and open access to better financial products over time.

Seek Professional Advice

If your score stagnates or drops despite regular repayments, seek help from credit counsellors or your bank. They can identify reporting errors, guide on debt settlements, or suggest step-by-step improvement strategies.

Avoid Frequent Credit Applications

Each credit application results in a hard inquiry, which can temporarily lower your score. Apply for new credit only when necessary and manage existing credit responsibly.

Pay Your Dues on Time

Timely payments are the most critical factor in improving your credit score. Automate payments or set reminders to avoid missing due dates for credit cards, loans, or utilities.

Track Progress with Free Tools

Use free CIBIL score tracking services or credit monitoring apps to check your score monthly. Monitoring lets you spot errors, track recovery, and avoid negative surprises when applying for credit.

Don’t Max out Your Credit Cards

Keep your credit card balances lower than your actual credit limit. Aim for a credit utilisation ratio of below 30%. For example, if your total limit is ₹1.5 lakh, keep your outstanding balances under ₹45,000.

Pay Your Debts Strategically

Reduce high-interest debts to improve your debt-to-income ratio. This positively impacts your score and provides financial relief.

Maintain a Diverse Credit Portfolio

Having a mix of credit types, such as secured loans, personal loans, and credit cards, demonstrates responsible financial behaviour. However, avoid taking on unnecessary debt.

Regularly Check Your Credit Report

Monitor your credit report for discrepancies, such as unrecognised accounts or inaccurate late payments. Dispute errors promptly to protect your score.

Avoid Closing Your Old Credit Accounts

Older credit accounts with positive histories contribute to your credit age. Avoid closing these accounts unless absolutely necessary, as they add stability to your credit profile.

Use a Secured Credit Card

If premium credit cards are unavailable, opt for a secured credit card linked to a fixed deposit. Use it responsibly to rebuild and improve your credit score.

Seek Expert Advice

A financial advisor can provide personalised strategies to help you address weaknesses in your credit profile and achieve a better score.

A 685 credit score signifies fair creditworthiness, offering reasonable access to financial products with some limitations. By addressing key areas such as timely payments, lowering credit utilisation, and maintaining a diverse credit mix, you can transition into the good credit range. With focused efforts and financial discipline, better credit terms and financial opportunities are within reach.