Is 650 a Good Credit Score

A credit score is an important factor for borrowers as it hugely contributes to the rate of approval of a loan. Most lenders consider a credit score of 750 and above as a creditworthy score. However, not all borrowers have an excellent credit score. 

In this article, we will discuss if 650 is a good credit score or not. Read ahead to know more!

What is a Good Credit Score?

A credit score is a summary of your credit behavior. It is a numerical value that ranges from 300 to 900. The higher the score, the more creditworthy you are. Lenders use your credit score to assess how reliable of a borrower you are. 

A higher credit score gives you more negotiating power while applying for a loan and you can get a loan that meets your terms. 

Is 650 a Good CIBIL Score?

Yes, scores above 600 are considered ‘fair’, which means that credit options will be limited, but your loan can get approved.

Now that we have answered the question- is 650 a good CIBIL score, let us take a look at what a CIBIL score is.

CIBIL is short for Credit Information Bureau India Limited, and it is a company that provides credit ratings. The CIBIL is the most commonly used credit score in India, which is why unless mentioned otherwise, credit score stands for the CIBIL score.

But many other companies like Experian, Fico, etc. provide credit information in India as well as around the world. 

CIBIL Scores and What They Mean

Now that we have understood what the CIBIL score means, it is time we looked at the range of scores in detail. As your score goes higher, it gets easier for you to get loan approvals.

CIBIL Score Range Creditworthiness

750 - 900


700 - 749


650 - 699


600 - 649

Needs Improvement

Below 600

Immediate Action Needed

These numbers are not absolute while applying for loans, because lenders also look at other criteria. Someone with a low CIBIL score can get a loan as well.

Interpreting a 650 Credit Score

A credit score of 650 is normally considered in acceptable to good range, depending on the scoring algorithm employed by the lender. While it may not be regarded as exceptional, many lenders see it favorably. 

With a score of 650, you're likely to be eligible for a variety of financial goods, such as credit cards, loans, etc. However, the terms and interest rates may be less favorable than those available to people with higher credit ratings.

Tips to Improve a 650 Credit Score

Borrowers need good credit scores to avail a loan and lenders require good credit scores to find a reliable borrower. To ensure you get a loan on your needed terms, here are some tips if you want to improve your credit score - 

Starter Loans

Borrowers new to credit or with low credit scores can use starter loans or small personal loans to build their credit scores step by step. However, these loans come with high interest rates so be prompt in repaying the loans to gradually improve credit scores. Remember to be consistent; skipping even one repayment can drastically reduce your score. 

Pay Your Dues on Time

Whether it's your credit card bills or your EMIs, pay them on time or before if you can manage. Missing EMIs or credit card payments can lower your credit score. If you are having trouble paying the whole credit card bill, consider paying the minimal amount due on time to avoid affecting your credit score.

Say No to Too Many Credit Cards

Having too many credit cards is a sign of financial mismanagement. Additionally, it might lead you to spend more than necessary with funds at your disposal. It will make it difficult for you to keep track of your finances and pay the bills on time. This could pull your credit score down.

Plan Your Loans in Advance

If you are planning to take a big loan, plan it. Consider calculating your EMIs and tenure based on what seems comfortable to you. Unplanned loans may become a burden, and might lead to missed payments.

Don’t Apply for Too Many Loans

Too many loans might seem like a good idea at the moment, but it will only hurt your credit score as well as your financial standing. Making too many loan inquiries at once may affect your credit score negatively. This is because the lenders will conduct a credit inquiry which will decrease your credit score.

Credit Utilization Ratio

Your credit utilization ratio is the ratio of your credit available to the credit utilized, which should ideally be kept under 30%. This involves calculating the total of all the credit cards you own. Exceeding this limit may make you look credit-hungry.

Try Not to Settle Your Loans

Settling your loans means paying an amount much less than the loan amount so that the debt is considered to be paid off. It happens when you delay payments or have become a defaulter. This has the most negative effect on your credit score.

A ‘settled’ remark on your report will deflect the lenders from giving you a loan.


The score of 650 is a good one, but you can work on improving it. If you can cross 700, it will become much easier for you to get loans on affordable interest rates.

Having a clear idea of your credit behavior and monitoring your credit score are good financial habits. These will help you in the future if you are planning to take bigger loans to fulfill your life goals.

650 Credit Score - FAQs

A credit score of 700 or above is considered good. But you can get personal loans even if your credit score is just 600.

Yes, you can work on improving your credit score. Paying your bills on time, and maintaining good financial habits can help pull up your credit score.

By paying your bills on time, maintaining your credit utilization rate, and not taking unnecessary loans, you can easily improve your credit score.

No, you can still get loans on a credit score of 650. But it is a good idea to work on your credit score before it drops below 600. A score of below 600 needs immediate attention.

Your credit score improves over time, and you won’t see a huge change within a month. But if you are working towards improving your score, you will see steady changes in a few months. 

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