Credit Score and Home Loans- How to Improve your Credit Score for an Easy Home Loan - Loan Trivia


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Wednesday 25 October 2017

Credit Score and Home Loans- How to Improve your Credit Score for an Easy Home Loan

The satisfying thought of having a place of one’s own is usually associated with the financial concerns of paying for the home. A Home Loan is probably the best and the only feasible solution that can put the financial concerns of owning a home to rest.

When applying for a Home Loan, the credit score plays a very important role in determining an individual’s eligibility for the loan.

Credit score is a score between 300 to 900, representing an individual’s past credit files and credit report information. It is a quantification of one’s credit worthiness and repayment capacity which is used by lenders to assess the capability of a loan applicant to repay the loan in time.

By following the below-mentioned steps, loan applicants can take their credit score closer to the highest limit (900):

  1. The first step here is knowing where you stand by requesting a credit report from CIBIL.
  2. Next is having an active credit account where timely repayments are made.
  3. Maintaining a permissible difference between the credit limit assigned (0n a credit card) and the availed debt is important to build a good CIBIL score which is close to 900.
  4. Avoid showing a credit hungry behavior by keeping away from multiple credit cards.

Implement these steps to build a strong credit profile and home loan application. You can also use a free Home Loan eligibility calculator online to ascertain the loan amount you can borrow.

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