690 CIBIL Score: Is it Good or Bad

A CIBIL score of 690 is considered to be in the fair category. It is not an ideal score for obtaining loans at the most competitive interest rates, but it is far from bad. With this score, you may still qualify for loans and credit cards, but you will likely face higher interest rates compared to those with a score above 700. This score indicates that you have a history of timely repayments, but you may have room for improvement in your credit profile.

A CIBIL score of 690 is classified as fair on the credit spectrum. This means that lenders may see you as a moderate-risk borrower. While this score is above the threshold of 650, which is generally considered poor, it still doesn’t fall into the "good" or "excellent" categories. 

 

Lenders may offer loans, but the terms might not be as favourable, and the interest rates could be higher than for borrowers with a higher score. Essentially, a score of 690 means that you have demonstrated some responsibility with credit, but there may be room for improvement to gain better loan approval terms in the future.

Credit bureaus in India assess scores using different scales, which can affect how a 690 CIBIL score is classified. 

 

Here’s a comparison:

Yes, it is possible to secure a personal loan with a 690 CIBIL score, but it may come with higher interest rates. Lenders may still consider you for a loan, but as this score is at the lower end of the "fair" category, you may be offered less favourable terms, especially compared to borrowers with higher scores.

• Improve your credit score by ensuring all payments are made on time
  

• Maintain a low credit utilisation ratio – ideally below 30%
  

• Offer a co-applicant to improve your application’s strength
  

• Provide additional proof of income to demonstrate financial stability
  

• Use secured loans or assets as collateral to reduce the risk for lenders

A 690 CIBIL score may qualify you for a credit card, but the options could be more limited compared to those with higher scores. The chances of approval will depend on the type of credit card you apply for and the specific lender's criteria. You may be offered cards with lower credit limits or higher interest rates, but it is still possible to be approved.

Credit Card Types for Fair Scores

For individuals with a credit score of 690, the following types of credit cards are often available:

• Secured Credit Cards

These cards require a fixed deposit as collateral. They are a good option for rebuilding or maintaining your credit score.

• Low-Limit Retail Cards

Some retail chains offer store-specific cards with lower credit limits, which can be easier to obtain.

• Credit Builder Cards

These cards are specifically designed for individuals with fair credit, helping to gradually improve your score with responsible use.

What to Expect: Limits, Charges & Conditions

With a 690 CIBIL score, you can expect the following when applying for a credit card:

• Credit Limits

Typically lower than what individuals with higher scores receive. It may range from ₹10,000 to ₹50,000 depending on the issuer.

• Annual Fees

May be on the higher side compared to premium cards.

• Interest Rates

Interest rates will likely be higher than those for individuals with scores above 700.

• Rewards and Benefits

Limited or no rewards. Many cards will not offer cashback or extensive loyalty programs until your score improves.

How to Improve Eligibility to Get a Credit Card

Improving your chances of getting approved for a credit card with a CIBIL score of 690 can be achieved with the following actions:

• Ensure Timely Payments

Pay all your dues on time to build a positive repayment history

• Apply with a Bank You Have a History With

If you have a longstanding relationship with a bank, they may be more willing to offer credit

• Start with a Low-Limit Card

Applying for a low-limit card can increase your chances of approval

• Maintain a Low Credit Utilisation Ratio

Ideally keep your balance below 30% of the available limit

Your CIBIL credit report consists of several components that determine your overall score:

• Accounts

Your credit history, including open and closed accounts

• Repayment History

A record of your on-time and late payments

• Credit Inquiries

The number of times lenders have checked your credit report in the past six months

• Utilisation Ratio

The amount of credit used in relation to your total credit limit

• Personal Details

Information such as your name, address, and date of birth

A 690 CIBIL score is not considered "bad," but it is at the lower end of the "fair" spectrum. Here are steps you can take to improve it and increase your chances of securing better loans and credit:

Stay Calm – Scores Are Repairable

A 690 CIBIL score is far from being beyond repair. With time and consistent effort, you can improve your score. Understanding that credit repair is a process will help you stay focused and avoid taking drastic measures that could harm your credit further.

Check Credit Reports Regularly for Errors

To avoid unnecessary damage to your score, regularly check your credit report for errors. Mistakes, such as outdated or duplicate information, could be affecting your score negatively. You are entitled to one free credit report per year from each bureau, so take advantage of this and ensure your details are correct.

Dispute Errors on Credit Report

If you spot any errors in your credit report, such as incorrect information about payments or accounts, dispute them with the credit bureau. Correcting these errors can help raise your score and improve your creditworthiness. Ensure that you submit proper documentation to support your claim.

Avoid Applying for Multiple Loans or Credit Cards

When you apply for multiple loans or credit cards in a short period, it results in several hard inquiries on your credit report, which can lower your score. Each application may cause a small drop in your score, so it is better to apply selectively. Focus on managing existing credit rather than acquiring more.

Keep Older Credit Accounts Active

The age of your credit accounts impacts your credit score positively. Older accounts help boost your credit history and demonstrate a long-term responsible borrowing behaviour. Therefore, avoid closing old credit accounts, even if they are not used frequently. Keeping them active will improve your credit score over time.

Improving your 690 CIBIL score to 750 or higher requires dedication, patience, and responsible credit behaviour. 

 

Below are some effective strategies to boost your credit score:

Payment Discipline

The most important factor in improving your credit score is maintaining payment discipline. Paying all your bills on time, including credit card bills, loans, and utility bills, is essential. Even a single missed payment can negatively impact your score. Setting up reminders or automatic payments can help ensure you never miss a due date.

Credit Utilisation and Credit Mix

A healthy credit score depends on keeping your credit utilisation ratio below 30%. This means using less than 30% of your available credit limit at any given time. Additionally, having a mix of secured (e.g., home loans) and unsecured (e.g., credit cards) credit accounts helps demonstrate your ability to manage different types of credit.

Timeframe to Improve

With consistent effort, it typically takes between 3 to 9 months to improve your score from 690 to over 700. The timeframe depends on your efforts to reduce outstanding debt, maintain a low credit utilisation ratio, and make timely payments. If your score is closer to 690, it may take longer, but steady progress is achievable.