CIBIL Score is a numerical analytical report of the credit status of an individual. It represents a standard score by analyzing the credit history of a user. The CIBIL Score is considered poor if it lies between 300-550, and it stands excellent if your score lies between 750-900. It is also called a Credit Information Report (CIR).
If you are planning to buy any property and you want to apply for a home loan, then you need to cross-check your CIBIL Score for home loans periodically. Keeping a close eye on your credit score can help you know whether you are eligible for the loan or not.
Ways To Improve Your CIBIL Score
In this informative, we will come across different ways to improve your CIBIL Score for home loans. It will help you maintain a healthy track record of your credits.
1. Avoid Giving Guarantee For Others
Many people often play as heroes in someone else’s story. They become a guarantor for their relatives and friends. But even a single bad case can harm your credit score.
2. Avoid Taking Multiple Loans
Many people blunder and take multiple loans for different purposes at the same time. Failure in repayment of either of the loans can but hard on your CIBIL Score. It is better not to engage in multiple loan transactions.
3. Check Your Credit Score Periodically
It is suggested by several banks and financial institutions too that one should always cross-check for the credit score periodically. It helps a person to keep a quality track record of his credit and loan history. If you don’t perform it, then you may have to face challenges in the future.
4. Choose Long Duration Loan
Many individuals willingly opt for low-duration loans. The minimum duration for the repayment of a home loan is 10 years. It can be challenging to make a per-month EMI. Thus, one should always choose long long-duration loan.
5. Increase Limit Of Your Credit Card
A small truck can help you keep your credit score healthy. You can increase the limit of your credit card to keep your loan amount under control. However, having a credit card with an increased limit can increase the greediness in a person.
6. Maintain Positive Credit Status
If you wish to maintain a positive and healthy credit status, you need to keep your credit spending at 30% of the total credit limit.
7. Repay Your Loan Amount Timely
The best way to keep your credit history healthy and workable in your favor is to repay the loan amount timely. Don’t miss a single EMI payment to maintain a healthy CIBIL Score.
Conclusion
If you consider all the above-discussed points, you can manage your credit score positively. If you still have any doubts, you can visit any online property portal to check your credit score before applying for a home loan. A quality CIBIL account helps you to get the desired loan amount from the bank.
