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You Need Good CIBIL Score for Home Loans

By IIFL Home Loans | Published On Aug 28 2016 4:00 PM 2 min read 310 views 5571 Likes
You Need Good CIBIL Score for Home Loans

Areyou worried about your home loan rejection

What should be your CIBIL Score

How can you improve your CIBIL Score

If you are looking for the answers to these questions, you are about to land on the right space. Yeah! This stuff will guide you in enhancing your CIBIL score. Before discussing the right methodologies, first, understand how much you need to improve on your score. CIBILtrans unionscore is calculated on the grade of 900. If the credit score is above 700, it is fine. Above 700 credit score makes the winninghome loanapplication. But in case if your credit score falls below 600, aim higher and remember there are lots of scope for improvements.

Here how you can make a good CIBIL report and create a winning situation for yourself

Repayments on time/em> Repayments must be done without falling on the timelines. One must utilize the maximum credit limit of his credit cards. But simultaneously, prepayments should be done for the outstanding amounts. This will enhance your CIBIL score.

Joint Home Loan f your credit score is not good, search for a co-applicant in home loan. As the co-applicant will share the equal responsibility of your repayments, his credit score will also be taken into consideration on an equal basis. So, if your credit score is below average, apply with any co-applicant whose credit score is high. Co-applicants can be husband & wife, father & son, brother & sister or sister & sister and some other specific relations are also acceptable. Brother and Brother can also apply on a joint basis, but their address should be the same.

Enhance your Credit Limit If you have good repayment habits, it is likely banks willoffer you an increased credit limit. That means bank has gained confidence in your financial portfolio. Leverage the situation and get your credit limit enhanced by the bank. It does not mean you have to spend more and more and exhaust all the credit facilities. Always spend within your repayment capacity.

Leverage online lending platformsThere is another mantra for improvement of your CIBIL score rating. Unfortunately, if you have a low CIBIL score, you can take home loan from a peer to peer lending platform like Lend box, Vote4Cash,i-lend. Justify the reasons for your poor credit score, and this will help you get registered on these platforms.

Keep the credit card runningIf you have good repayment history for any credit card, keep that account running. The timely payment history would be boon for you. Banks will consider this as an instrumental factor while evaluating yourhome loanapplication.

Track your credit report at regular intervals- It good to track your credit report at least twice or thrice in a year. Study the report in detail; this will give you a fair idea where you stand. If you track any discrepancy or incorrect information in the report, immediately inform the same to the lender.

The discussion would not be complete if we will not show you how your CIBIL Score is affected

*Note this diagram gives you a fair idea. The actual percentage may vary from the above figure.

You must also note that there are several other factors that do not affect your CIBIL report in any way. These are mentioned below -

  • Qualification
  • Caste or religion
  • Gender and
  • Savings account behavior

So, do you know your CIBIL Score Have you calculated your home loan eligibility

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