698 CIBIL Score: Is it Good or Bad

A 698 CIBIL score falls into the fair range, but it is just a step away from the "good" category. This score indicates that you have a history of managing credit responsibly, but there’s still some room for improvement. 

 

While you may qualify for loans and credit cards, the terms might not be as favourable as those available to individuals with scores above 700. However, with some effort and smart financial management, this score can easily improve.

A 698 CIBIL score is considered fair and is on the higher end of the "fair" category. It suggests that you have demonstrated some level of credit responsibility but still have room to improve your financial habits to reach the "good" or "excellent" credit range. 

Individuals with a 698 CIBIL score typically face moderate interest rates on loans and credit cards. To secure better terms, such as lower interest rates and higher credit limits, improving your score to 700 or above would be beneficial.

Each credit bureau evaluates credit scores using its own criteria and ranges. Here’s how a 698 credit score is interpreted across India’s major credit bureaus:

Yes, it is possible to get a personal loan with a 698 CIBIL score. Since the score is at the upper end of the fair category, you may qualify for a loan, but it is important to note that you may face slightly higher interest rates compared to individuals with scores above 700. 

Your loan amount and terms will also be influenced by other factors, such as your income and existing financial obligations. Here’s how:

• Interest Rates: Likely higher than prime borrowers
  

• Loan Approval: Likely, subject to other financial factors
  

• Loan Amount: May be capped depending on income and debt
  

• EMI: Higher EMI due to increased interest rates

• Provide Strong Income Documentation

Clear evidence of stable income can improve your chances of approval

• Consider a Co-applicant

Adding a co-applicant with a higher credit score can help strengthen your application

• Offer Collateral

If needed, offer an asset as collateral to reduce the lender's risk

• Maintain Low Credit Utilisation

Keep your credit card balances low, ideally below 30% of your available limit

• Pay Off Existing Debts

Reducing outstanding debts improves your debt-to-income ratio, which can make your application more attractive

Yes, a 698 CIBIL score allows you to apply for a credit card. However, the terms might not be as attractive as those offered to individuals with higher scores. You can expect lower credit limits, higher interest rates, and possibly fewer rewards and benefits. 

The availability of cards may vary, but there are still options for those with fair credit. By maintaining good financial habits, you can gradually qualify for better credit cards with higher limits and better terms.

Credit Card Types for Fair Scores

With a 698 CIBIL score, the following types of credit cards are often available:

• Secured Credit Cards

These cards require a deposit as collateral. They are ideal for individuals looking to rebuild or improve their credit score.

• Retailer-Specific Cards

Some retailers offer credit cards with lower credit limits, and these are easier to qualify for with a fair credit score.

• Credit Builder Cards

These cards are specifically designed for individuals with fair credit scores. They help to establish or rebuild a credit profile over time.

What to Expect: Limits, Charges & Conditions

If you apply for a credit card with a 698 CIBIL score, you can expect the following terms:

• Credit Limits

Generally lower credit limits, ranging from ₹10,000 to ₹50,000, depending on the card issuer.

• Annual Fees

You may be charged an annual fee, which could be higher than what’s charged to individuals with better scores.

• Interest Rates

Interest rates will likely be higher than the prime rates, which could result in higher overall costs if you carry a balance.

• Rewards

Credit cards for fair scores often come with limited or no rewards. You might not have access to premium perks like cashback or travel benefits.

How to Improve Eligibility

To improve your chances of getting approved for a credit card with a 698 CIBIL score, consider these strategies:

• Maintain Timely Payments

Ensure all your bills, including loans and credit card payments, are paid on time

• Apply with a Bank You Have a History With

A strong relationship with a bank can help improve your chances of approval

• Start with a Secured Card

If your score is on the lower end, applying for a secured credit card can help you build a stronger credit profile

• Lower Your Credit Utilisation

Keep your credit card balances below 30% of your available limit to improve your creditworthiness

Your CIBIL credit report is a detailed summary of your credit history and includes several important components that influence your score:

• Accounts

Shows both open and closed credit accounts, including loans and credit cards, and their statuses.

• Repayment History

A record of on-time and missed payments, which directly impacts your score.

• Credit Inquiries

Each time a lender checks your credit report, it is logged here. Multiple inquiries within a short period can negatively affect your score.

• Credit Utilisation

The percentage of available credit you are using. A higher ratio can lower your score.

• Personal Information

Contains basic details such as your name, address, and date of birth, which help verify your identity.

Improving your 698 CIBIL score to 750+ involves consistent effort and financial discipline. By focusing on key areas like timely payments, credit utilisation, and credit mix, you can move into the "good" credit range.

Consistency in Payment Behaviour

Making timely payments is the most important factor in improving your credit score. Set up reminders or automatic payments to ensure you never miss a due date. Paying all your bills, including loans, credit cards, and utility bills, on time will help maintain and increase your score over time.

Managing Credit Utilisation and Diversifying Credit Types

Keep your credit utilisation ratio below 30% of your total available credit. Additionally, maintaining a balanced credit mix (such as a combination of credit cards, personal loans, and auto loans) shows that you can manage different types of credit responsibly, which will improve your score.

Estimating the Timeframe for Improvement

Improving your 698 CIBIL score to 750+ can take anywhere from 6 to 12 months, depending on your financial habits. By reducing debt, keeping credit utilisation low, and making consistent on-time payments, you can see significant progress toward achieving a higher score.