705 Credit Score: Good or Bad

A 705 credit score is a sign of responsible credit behaviour and sound financial practices. It is considered good by many lenders, though it does not reach the excellent range. Whether your score is assessed as good or fair depends on the specific bureau’s scoring model. A 705 CIBIL score means you can access loans and credit cards with competitive terms but leaves room for further improvement to unlock even better financial benefits.

A 705 CIBIL score and a 705 credit score aren't identical. Your 705 CIBIL score comes specifically from the credit bureau TransUnion CIBIL. However, a credit score is a broader term that refers to credit ratings in general, from any of the four RBI-licensed bureaus in India. 

While CIBIL provides the CIBIL score, other bureaus like Experian, Equifax, and CRIF High Mark calculate their own versions using different algorithms. This means your score might vary slightly across bureaus, even with the same credit history. 

A 705 CIBIL score falls in the good range, showing positive credit behavior. Most lenders view this favorably for loan approvals. However, when someone mentions a 705 credit score, they could be referring to any bureau's rating, not just CIBIL's assessment of your creditworthiness.

Yes, a 705 CIBIL score is considered good in India. It places you in the ‘good’ range, indicating that you manage credit responsibly. Lenders generally view you as a low-risk borrower with this score. So, you should be eligible for various credit products, including personal loans, credit cards, and EMI options. 

However, while 705 is a solid score, aiming for a higher score can help you unlock even better interest rates and terms. A score above 750 would improve your chances of securing more competitive offers. Remember that lenders also consider factors like income, payment history, and credit utilisation in their decision-making process.

Credit bureaus assess credit scores on varying scales, leading to different interpretations of a 705 credit score. TransUnion CIBIL, CRIF High Mark, Experian, and Equifax have their own ranges to categorise credit scores. Here's a breakdown of where a score of 705 stands with each bureau:

A 705 credit score is generally considered reliable. However, depending on the lender and bureau, it could result in slightly different loan or credit terms. Understanding your score across bureaus can help you tailor your financial decisions accordingly.

A CIBIL score of 705 puts you in the ‘Good’ category, which is a favourable position with most lenders. This score shows a decent financial discipline and can open doors to various credit products. Here's what you can typically access with this score on Bajaj Markets: 

Personal Loans

With a 705 CIBIL score, you can qualify for personal loans up to ₹55 Lakhs from over 20 lenders, with tenures extending up to 96 months. Interest rates may start from 9.99% p.a., depending on the lender and your financial profile.

Credit Cards

You're eligible for most entry-level or mid-tier credit cards, offering benefits like cashback, rewards, and fuel surcharge waivers. Premium cards might require a higher score, but a 705 score positions you well for quality options.

Home Loans

A 705 CIBIL score can help you secure home loans up to ₹15 Crores from multiple lenders. Interest rates may begin at 7.35% p.a., with tenures up to 32 years. Lenders will assess property documents, income stability, and repayment history.

Business Loans

For MSME funding or working capital needs, a 705 CIBIL score meets the entry-level norms for business loans. You may receive offers up to ₹80 Lakhs, with interest rates starting from 14% p.a., depending on the lender's criteria.

Vehicle Loans

You're considered eligible for both car and bike loans, including used vehicle financing. Expect flexible amounts and tenures, with competitive interest rates and potentially lower down payment requirements. 

Disclaimer: Loan and credit card approvals are subject to each lender’s internal policies, eligibility criteria, and risk assessment process. While a 705 CIBIL score improves your chances, it does not guarantee approval or favourable terms. Always check the specific terms and conditions with the bank or NBFC before applying.

Yes, a 705 CIBIL score can make you eligible for pre-approved loans and credit cards, particularly if you have a stable income and a good repayment history. Lenders view a 705 score as an indicator of responsible credit usage, which increases your chances of receiving pre-approved offers. These loans typically involve soft credit checks, meaning your score won't be affected. 

Similarly, you might have access to mid-tier credit cards with rewards, cashback, or fuel benefits. However, premium credit cards might require a slightly higher score. Don’t forget to compare the terms, benefits, and fees before accepting any pre-approved offer.

Even with a 705 CIBIL score, a loan application can still be rejected for several reasons. This is because lenders assess more than just your credit score to evaluate creditworthiness: 

• High Debt-to-Income Ratio: If your current EMIs consume a large portion of your monthly income, lenders may be concerned about your ability to manage additional debt. 

• Multiple Recent Credit Applications: Frequent credit inquiries within a short time frame may signal that you are in financial distress, which lenders often view negatively. 

• Irregular Income or Employment: Frequent job changes or gaps in employment can make lenders hesitant, as they may doubt your ability to maintain regular EMI payments. 

• Unfavourable Comments in Credit Report: Late payments or settled loans can raise red flags, despite a solid CIBIL score. 

• Insufficient Income: If your income doesn’t meet the lender’s requirements, your application may be declined. 

• Application Errors: Even minor mistakes, such as incorrect details or missing documents, can result in automatic rejection.

Here’s what you can expect from your CIBIL report if your score is 705:

• A 705 CIBIL score tends to reflect a history of timely credit repayments, suggesting a reliable borrower in the eyes of lenders. 

• You likely maintain a credit utilisation ratio under 30%, a positive factor that shows responsible credit management.

• Your report might include a mix of both secured and unsecured credit types (loans, credit cards, etc.), indicating a balanced credit profile. 

• Soft credit checks for pre-approved loans and credit cards may appear, but these won’t impact your score negatively.

• A detailed breakdown of your payment history will show any missed or delayed payments, highlighting areas of improvement. 

• While older payment delays or higher credit usage may be visible, these may not be too crucial if your recent history shows better financial management. 
   

On Bajaj Markets, you can also track your score trends over six months using the app and use the ‘Improve Your Score’ feature to set and achieve goals. Get customised tips based on your credit habits and utilise features like the credit behaviour quiz to further enhance your score.

Maintaining and improving a 705 credit score involves financial discipline and good credit habits. Below are some practical strategies: 

Timely Payments

Always pay your EMIs and credit card dues before the deadline to maintain a strong repayment history.

Monitor Credit Utilisation Ratio 

Keep your credit utilisation below 30% of your total credit limit. This indicates responsible borrowing.

Regularly Check Credit Reports

Review your credit reports to spot inaccuracies or errors that could lower your score.

Limit Hard Inquiries

Avoid multiple loan or credit card applications in a short period, as hard inquiries can temporarily lower your score.

Reduce Existing Debts

Lowering your outstanding debts improves your credit profile and increases lender confidence.

Maintain Older Credit Accounts

Keeping older accounts open improves your credit history length, positively impacting your credit score.

Use a Mix of Credit Types

Balancing secured and unsecured credit demonstrates diverse credit management skills.

Set Payment Reminders or Automate Payments

Automating payments prevents missed deadlines, maintaining consistency in repayment.