In India, a CIBIL score broadly falls into five broad categories: 

So, is 723 a good credit score? The short answer is yes, it is good. This score falls within the ‘Good’ range, which is defined as scores between 670 and 739. This means that you’re more likely to be approved for loans and credit cards compared to someone with a ‘Fair’ or ‘Poor’ score. However, it’s important to note that the higher your score, the better your chances of securing loans at the best possible interest rates and terms. 

Loan Approvals 

When you apply for loans, such as personal loans, home loans, or car loans, this score indicates to lenders that you are a relatively low-risk borrower. With this score, you should expect a positive response when applying for loans from most lenders, including banks and NBFCs (Non-Banking Financial Companies). 

However, while a score above 700 usually does open many doors for loans, your interest rates may not be as low as those offered to individuals with scores in the ‘Very Good’ or ‘Excellent’ range (740+). Still, your credit score qualifies you for most types of loans, although you may receive slightly higher interest rates compared to someone with an 800+ score. 

Credit Card Approval 

For individuals having credit scores of 723, getting approved for a standard credit card is easy. You’ll likely receive access to entry-level or mid-tier credit cards, which come with a decent credit limit and rewards like cashback or points. However, for premium credit cards with higher rewards or travel perks, you might need a higher score (740 or more). 

It’s important to note that this score gives you a good chance of getting approved for most credit cards, but the interest rates on these cards may be slightly higher compared to those offered to individuals with scores above 740. 

Keep Payments on Time 

Payment history makes up the largest portion of your credit score. To improve your score , you need to continue making payments on time. This includes paying your credit card bills, loan EMIs, and utility bills. Missing payments or defaulting on any payments can significantly lower your score. Setting up automatic payments or reminders can help you avoid missing due dates. 

Manage Credit Utilisation 

Credit utilisation is another important factor that affects your credit score. It is the ratio of your outstanding credit card balance to your total available credit. For the best results, aim to keep your credit utilisation ratio below 30%. For example, if your total credit limit is ₹1,00,000, try to keep the balance below ₹30,000. 

Lowering your credit utilisation will help raise your score over time. Paying off your outstanding balances and avoiding maxing out your credit cards will show lenders that you can manage credit responsibly. 

Avoid Opening Too Many New Accounts 

Opening too many new credit accounts within a short period can negatively impact your credit score. Each time you apply for credit, a hard inquiry is made, and too many hard inquiries within a short time can lower your score. Even if you’re applying for credit cards or loans, try to space out your applications to avoid harming your score.