Are you looking to buy a home of your dream using a home loan? You are not alone! Many people are fulfilling their wish of living in their own home with the help of a housing finance.
The availability of home loan interest at a lower rate has encouraged home buyers to avail a loan and repay it over a long tenor.
However, when you apply for home loans, you need to fulfill many prior eligibility conditions. An online tool such as housing loan eligibility calculator can also help you know your eligibility instantly. One of the vital eligibility conditions is none other than the CIBIL Score. Â Â
The Credit Score is the reflection of your creditworthiness which a lender assesses before approving a home loan application. The CIBIL Score which reads 750 or more out of 900 is considered ideal. Thus, it becomes essential to keep your CIBIL Score up to get a housing loan approval at a lower rate.
Let’s discuss some tips that will help you enhance your CIBIL Score for quick approval at a lower home loan interest rate so that you can repay in smaller EMIs.
Quick Tips to Improve your CIBIL Score
Ensure there are no Errors in your Credit Report
A credit report keeps all record of your credit and repayment. Sometimes, there may be some wrong or unaccounted entries into it which may bring down your Credit Score. Thus, the first thing that you need to ensure is that there are no errors in your credit report. For this, you can get a copy of your credit report from the credit bureau.
Make Timely Payment of your Existing Debts
If you have some ongoing debts against your name, you should ensure that you make timely payments. Be it your existing loan debts or credit card outstanding bills; all should be paid before the end of the due date. When you do that, you will be able to ensure a higher Credit Score. When you don’t make timely payments, the loan and credit card issuing authorities report it to the credit bureaus. When that happens, then that leads to a lower CIBIL Score.
Don’t Apply for too many Credits at a Time
Did you know that applying for too many credits at a single time may lead to a lower CIBIL Score? Yes, that’s possible. Every time you apply for a loan, your lender pulls your CIBIL Score which leads to its lowering by bit. Thus, even if a loan requested gets declined by a lender, you should not keep applying that someone will approve. Instead, you should wait for 3-6 months before applying for a loan once again if you are willing to keep a robust CIBIL Score.
The Bottom Line
You are now aware of some of the major tips that will help to enhance your CIBIL Score for home loan and many more debt types. You should ensure to follow the discussed tips to keep your Credit Score up and higher. Once you are ready to apply for home loans, you can do that online and save time and efforts.