630 CIBIL Score - Is it good or bad?
A 630 CIBIL Score is categorised as fair but not ideal. While it is above the poor range, it still indicates moderate financial risk. Borrowers with this score may qualify for loans or credit cards, but not on the most favourable terms. It suggests some financial inconsistencies, such as delayed payments or high credit utilisation. Lenders might approve credit with stricter conditions or higher interest rates. To improve access to financial products, you must focus on consistent repayment habits, monitoring your credit utilisation ratio, and maintaining a good mix of secured and unsecured loans. Strengthening your financial discipline is crucial.
How to improve your 630 CIBIL Score?
Improving a 630 CIBIL Score requires adopting disciplined financial practices. Pay all outstanding EMIs and credit card bills on time, as timely payments positively impact your score. Keep your credit utilisation ratio below 30% of your credit limit. Avoid applying for multiple loans or credit cards within a short period, as this may lower your score. Regularly check your credit report for errors or discrepancies and resolve them promptly. Maintaining a healthy balance of secured and unsecured credit further strengthens your financial profile. With consistency and patience, you can achieve a higher score and better financial opportunities.
How does a 630 CIBIL Score impact interest rates?
A 630 CIBIL Score can lead to higher interest rates on loans and credit products. Lenders consider borrowers with this score as moderately risky, which means they might approve credit but at less favourable terms. Interest rates are typically higher compared to those offered to individuals with excellent scores (750 and above). Higher interest rates increase the overall borrowing cost, making loans less affordable. Improving your credit score can help you qualify for loans with lower interest rates and better repayment options, ensuring long-term financial savings and stability.
