697 CIBIL Score: Is it Good or Bad

A 697 CIBIL score is classified as fair, sitting just on the edge of the "good" range. While it's not considered a poor score, it's not quite in the "excellent" category either. With a 697 credit score, you're likely to be approved for loans and credit cards, but the terms, such as interest rates, might not be as favourable as those offered to individuals with higher scores. The good news is that a 697 CIBIL score can be easily improved by practicing good credit habits.

A 697 CIBIL score is considered fair on the credit scale. It's higher than scores typically associated with poor credit, such as those below 650, but it still falls short of the "good" credit range, which usually begins around 700. 

Lenders may offer loans, but you might face higher interest rates and less favourable terms compared to individuals with scores above 700. This score indicates that you've demonstrated some credit responsibility but have areas for improvement to make your credit profile more attractive to lenders.

 

Credit bureaus in India - TransUnion CIBIL, Experian, Equifax and CRIF High Mark - use slightly varied scoring models. Thus, the interpretation of a 697 score may differ slightly. 

Here’s the breakdown:

Yes, it is possible to secure a personal loan with a 697 CIBIL score, but it will likely come with higher interest rates than loans offered to individuals with a higher score. While a 697 credit score signals a fair credit history, lenders may consider you a moderate-risk borrower, so they may offer loans at less favourable terms. Nonetheless, approval for personal loans is still likely, and improving your credit score further can help secure better terms in the future.

Consider a Co-applicant

If you have a co-applicant with a higher credit score, it can improve your chances of loan approval.

Offer Collateral

Securing your loan with an asset (e.g., property, car) can make lenders more confident in approving your application.

Provide Strong Income Proof

Lenders often look for stable income, so provide clear documentation to support your financial situation.

Maintain Low Credit Utilisation

Keep your credit utilisation ratio below 30% to show responsible credit management.

Pay Off Existing Debt

Reducing outstanding debt will improve your debt-to-income ratio and increase your chances of loan approval.

Yes, it is possible to get a credit card with a 697 CIBIL score, but the type of credit card you qualify for may come with certain limitations. With a 697 credit score, you are likely to be approved for a credit card, but it may be offered with a lower credit limit. 

It might also come with higher interest rates compared to cards available to individuals with a higher score. However, it is still possible to qualify for cards with some basic rewards or features, particularly if you demonstrate good credit habits.

Credit Card Types for Fair Scores

For individuals with a 697 CIBIL score, the following types of credit cards may be available:

• Secured Credit Cards

These cards require a fixed deposit as collateral, making them ideal for individuals looking to rebuild or maintain their credit.

• Low-Limit Retail Cards

Many retailers offer store-specific cards with lower credit limits, which are easier to qualify for.

• Credit Builder Cards

These cards are designed to help people with fair credit scores build a positive credit history over time.

What to Expect: Limits, Charges and Conditions

When applying for a credit card with a 697 CIBIL score, you may face the following terms:

• Credit Limits

Expect lower credit limits, typically ranging between ₹10,000 to ₹50,000

• Annual Fees

The annual fees on credit cards may be higher compared to premium cards offered to those with higher scores

• Interest Rates

Higher interest rates may be charged on outstanding balances

• Rewards

Limited or no rewards may be available, especially if you're applying for entry-level cards

How to Improve Eligibility

To improve your eligibility for a credit card with a 697 CIBIL score, consider the following tips:

• Maintain Timely Payments

Make sure all your payments are made on time, especially credit card and loan payments

• Apply with a Bank You Have a History With

If you've had a long relationship with a bank, they may offer you better terms

• Start with a Low-Limit Card

Opting for a lower-limit card may improve your approval chances

• Keep Credit Utilisation Low

Aim to keep your credit usage below 30% of your available credit to show responsible credit management

Your CIBIL credit report plays a crucial role in determining your score. It contains several key components that lenders review when deciding whether to approve your loan or credit application:

• Accounts

This section shows your active and closed credit accounts, including loans and credit cards

• Credit Utilisation

The percentage of your total available credit that you are using

• Personal Information

Basic details such as your name, address, and date of birth

• Repayment History

A record of your on-time and late payments

• Credit Inquiries

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

While a 697 CIBIL score is on the higher side of the fair range, it's still important to focus on improving it to qualify for better financial terms. 

Here’s what you can do to improve your credit health:

Avoid Applying for Multiple Loans or Credit Cards

When you apply for multiple loans or credit cards in a short period, it leads to multiple hard inquiries on your credit report. Each hard inquiry can reduce your score slightly. To avoid this, apply for credit only when absolutely necessary and space out your applications.

Keep Older Credit Accounts Active

Older credit accounts positively influence your credit score by contributing to the length of your credit history. Keeping these accounts active shows lenders that you have long-term credit management experience. Avoid closing old credit accounts, even if you don’t use them frequently.

Avoid Score-damaging Mistakes

Certain financial mistakes can lower your 697 CIBIL score, such as:

• Missing Payments

A late payment or missed due date can significantly harm your score.

• Maxing Out Credit Cards

Using more than 30% of your credit limit can negatively affect your score.

• Ignoring Debts

Unpaid debts or bills can result in collections and severely damage your score.

Diversify Your Credit Portfolio

A diverse credit portfolio (i.e., having a mix of credit cards, loans, and lines of credit) can improve your score over time. It demonstrates to lenders that you can handle different types of credit responsibly. Avoid relying on just one type of credit.

Pay Down Outstanding Debts

Reducing outstanding debt will lower your debt-to-income ratio and improve your credit score. Paying off high-interest debts first can help you save money on interest payments and help you manage your finances more efficiently. Aim to eliminate any high balances on your credit cards or loans.

Improving your 697 CIBIL score to 750+ requires consistent effort and a focus on the factors that impact your credit profile. By practicing responsible credit management, you can boost your score significantly.

Payment Discipline

To improve your score, ensure that all your payments—whether for credit cards, loans, or utility bills—are made on time. Payment discipline is the most important factor in improving your credit score. Setting up reminders or automating payments can help ensure you never miss a due date.

Credit Utilisation and Credit Mix

Keeping your credit utilisation ratio below 30% and maintaining a mix of credit types (e.g., secured and unsecured credit) will help improve your score. A balanced credit mix shows lenders that you can manage different kinds of credit responsibly, while low credit utilisation demonstrates that you're not overly reliant on borrowed funds.

Timeframe to Improve

Improving your 697 CIBIL score to 750+ typically takes 6–12 months, depending on how well you manage your credit habits. By focusing on reducing debt, making timely payments, and maintaining low credit utilisation, you should see steady progress toward your goal.