It is like a dream for every Indian to get a house of his own. In order to fulfil this dream, one need to be well versed with the pre-determined eligibility criteria before making an application for a home loan. Home loans are offered based on various factors, the rate of interest may differ based on the specifications and requirements provided by the loan applicant. This is where the credit score plays an important role while applying for a housing loan. A good credit score at this point of time will help you in creating a good impression in the eyes of your lender from which your borrowing the loan to meet your personal and general requirements.
As most of us are aware that credit score plays an important role nowadays when it comes to loans and credit card applications.Having a good credit score is very important as it is one of the most important parameters that is assessed by your lender when you apply for housing loans. A higher credit score may help you get a better and cheaper home loan. Before applying for a home loan, one should always know about his credit score in order to get the instant loan approval from his lender. And, if in case you do not have a good credit score at this moment, you may plan to improve your credit score within a period of time to help yourself to be eligible to apply for any other loans in the near future or you can check usda home loans for they don’t have a set credit score requirement, most lenders offering USDA-guaranteed mortgages require a score of at least 640.
While most of the lenders as well as housing finance companies has set varied limits on how high or low these scores should be before deciding to roll out home loan. A CIBIL Or credit score above 700 is required for one to abe eligible for home loans and individual who has a low score below this credit score is not entertained by any of the financial institutions or NBFCs. Check with the Personal loan brokers Australia and find out your eligibility and in case your CIBIL score is low, they can also guide you about the right path to choose.
Applying for a longer tenure home loan may help one to meet this general and personal expenses. But what if, you are not able to apply for a loan just because of your low CIBIL Score. IN such a case, you should follow these steps to raise or improve your credit score to successfully get your loan approved by your lender. Have a look at some of the tips mentioned below that will help you to raise your credit score within no time.
- Keep checking your credit report frequently: Keep checking your credit report frequently and try to reduce inaccuracies if any and clear them right at the moment otherwise it would adversely affect your credit score thereby lowering it.
- Know your payment deadlines: It is quite important to know your down payment deadline in order to avoid rushing at the last moment. Setting up a calendar or planner will help you to note down this.
- Pay your bills on time: This is the most important step that helps you maintain a good and a positive credit score. Paying all your due bills on time will prevent you from becoming a victim of low credit score.
- Keep those loans open that shows timely payment: To increase the chances of your home loan, make sure that any loans that you no longer use are closed and only the ones which reflect timely payments are kept open.