Increase Credit Score: People with a 657 credit score often wonder if this score could cause problems. But the good news is that a 657 score is neither considered too bad nor strong enough to immediately secure a low-interest loan. It’s generally classified as moderate risk. This means that banks will either scrutinise your profile more closely or offer higher interest rates, but you’re less likely to be rejected outright. The good news is that with a little discipline and good financial habits, this score can reach a strong 700+ category within a few months.
Why Improving a 657 Score Is Considered Easy
There are many reasons for a low credit score, such as late payments, high credit utilisation, or errors in the report. However, if these reasons are understood and corrected, raising a 657 score isn’t difficult. Paying EMIs on time, using your credit card limit sparingly, and regularly checking your credit report are steps that can quickly improve your score.
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How does a 657 score impact loans?
With a score of 657, banks and financial institutions consider you a slightly riskier customer. Consequently, interest rates on personal loans, car loans, or consumer loans are slightly higher. Approval for larger loans or premium credit cards can also be difficult. Documents are rigorously scrutinised, and loan limits are often lower. However, such a score isn’t considered completely unacceptable, so improving it can help you achieve financial stability.
How to Increase a 657 Score from 700 to 750
Good payment habits are considered the biggest factor in determining your credit score. Timely EMI payments contribute to approximately one-third of your score. Even a single day’s delay can lower your score, so setting up auto-deductions is helpful.
Keeping your credit limit underutilised is equally important. If your limit is one lakh rupees, try to keep your spending to no more than thirty thousand rupees. If you have to spend more, it’s best to request a credit limit increase from the bank.
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It’s important to check your credit report every three months, as sometimes the closing of an old loan isn’t updated, or an incorrect entry causes your score to drop. Correcting these errors can quickly improve your score.
Applying for multiple loans or cards simultaneously can lower your score, as it’s considered credit hungry. Therefore, whenever you need a loan, apply for one and wait for the results.
A long-standing credit history always helps. Closing old cards can weaken your score. If necessary, take out a small secured loan and make regular payments, which strengthens your credit profile.