620 CIBIL Score

A CIBIL score of 620 is categorized as fair, meaning there is room for improvement to access better financial opportunities. While a 620 score is slightly above poor, it can still limit your ability to secure loans or credit cards with favorable terms. With a 620 CIBIL Score, you need to focus on improving your CIBIL score to 750. Besides, you can also expect some loans & credit card offers that can help you build your credit history.

This page explores what a 620 CIBIL score means, how it affects your borrowing options, and how to improve your CIBIL score from 620 to 750. Read on to know more!

Table of Contents:

• ⇾ 620 CIBIL Score: Good or Bad
• ⇾ Impact of a 620 CIBIL Score on Borrowing
• ⇾ Loans and Credit Card Options for 620 CIBIL Score
• ⇾ Steps to Improve a 620 CIBIL Score
• ⇾ Do’s and Don’ts for Improving a 620 Credit Score
• ⇾ Benefits of Improving Your CIBIL Score to 750
• ⇾ Frequently Asked Questions

620 CIBIL Score: Good or Bad

A CIBIL score of 620 falls in the fair range, signaling moderate creditworthiness with potential for improvement. It indicates a borrower who may face challenges in securing loans or credit cards with favorable terms.

Meaning of 620 CIBIL Score

If you are wondering what does a CIBIl score of 620 means, then here is what you need to know. A CIBIL score of 620 reflects moderate creditworthiness but indicates potential risks to lenders.

• Loan Approvals: Loan applications are more likely to face additional scrutiny. Some lenders may approve loans but with strict conditions.
• Interest Rates: Interest rates are higher compared to those offered to borrowers with a score of 750 or above.
• Credit Card Eligibility: You may qualify for basic credit cards with low limits or secured credit cards. Premium credit cards with exclusive benefits are typically not offered.
• Loan Amounts: Lenders may offer reduced loan amounts due to perceived risk.
• Processing Time: Approvals may take longer as lenders evaluate your creditworthiness more thoroughly.

Reasons for a 620 CIBIL Score

A 620 CIBIL score is better than a poor score, however, knowingly or without knowledge, you may have committed some financial mistakes leading to a lower credit score. Here’s what a low credit score typically signifies:

• Late or Missed Payments: A few instances of delayed payments may exist in your credit history.
• High Credit Utilization: You might be using more than 30% of your total credit limit.
• Limited Credit History: Your credit profile may lack sufficient diversity or length.
• Recent Hard Inquiries: Multiple recent credit applications could have lowered your score.
• Loan Settlements: If any loans have been settled for less than the full amount, it impacts the score negatively.

Tips to Increase Your CIBIL Score from 620 to 750

To move your score into the good or excellent category, follow these actionable steps:

1. Pay EMIs and Bills on Time: Set up auto-payments to ensure you never miss due dates for credit cards and loans.
2. Reduce Credit Utilization: Keep your usage below 30% of your total credit limit.
3. Dispute Credit Report Errors: Obtain your credit report from CIBIL and review it for inaccuracies. Dispute incorrect entries to prevent them from affecting your score.
4. Avoid New Credit Applications: Hold off on applying for new credit cards or loans for a few months to prevent additional hard inquiries.
5. Settle Outstanding Debts: Pay off overdue amounts on credit cards or loans to improve your payment history.
6. Use a Secured Credit Card: If eligible for unsecured credit is limited, use a secured credit card backed by a fixed deposit to rebuild your score.
7. Maintain Old Credit Accounts: Keep older accounts active to benefit from their positive payment histories.
8. Pay More Than the Minimum Due: Pay the full balance on credit cards to reduce debt faster and avoid interest charges.
9. Diversify Your Credit Mix: Balance secured loans (e.g., home or car loans) with unsecured credit (e.g., personal loans) for a better credit profile.
10. Monitor Your Progress Regularly: Check your Credit score

• With 620 credit score, you can get secured loans, such as home loans, loans against property, loans against FDs, car loans, and gold loans.
• As 620 CIBIL Score is not a good credit score, you could expect relatively higher interest rates and stricter eligibility checks.
• For unsecured loans, consider a joint loan or co-signer to get loans at lower interest rates and better terms.
• Besides, government-backed loans such as Mudra, PMAY, etc., can be some loan options.
• You can also get personal loans, small cash loans, or NBFC loans. Some lenders may offer small loans at reasonable personal loan interest rates.

620 CIBIL Score Credit Card Offers

With 620 CIBIL score, you can expect secured credit cards and entry-level credit cards. With time you can build your credit history for better credit card offers & rewards.

• One can opt for secured credit cards, which are usually provided against an FD. SBI Unnati Card & ICICI Coral Secured Card are some examples.
• You can also expect to get entry-level credit card offers with a 620 credit score.
  Axis Insta Easy Credit Card and HDFC Bharat Cashback Card are some examples.
• The credit card offered will typically be of lower credit limit and may have some charges.

Do’s & Don’ts for Improving a 620 Credit Score

Improving a 620 credit score requires consistent financial discipline and avoiding common mistakes that can further harm your creditworthiness. Follow these do’s and don’ts to rebuild your credit effectively.

Benefits of Improving Your CIBIL Score to 750

Improving your CIBIL score to 750 unlocks numerous financial advantages, positioning you as a low-risk borrower and opening doors to better credit opportunities. Here’s how achieving a 750 score can enhance your financial prospects:

• Lower Interest Rates: Enjoy reduced interest rates on loans and credit cards.
• Faster Loan Approvals: Experience quicker approvals with minimal documentation.
• Higher Credit Limits: Access larger loan amounts and better spending limits.
• Premium Credit Cards: Qualify for cards with exclusive perks like rewards, cashback, and travel benefits.
• Better Financial Flexibility: Increased access to credit enhances your financial security.