What Is The Perfect CIBIL Score For A Home Loan?

Thinking of getting a Home Loan? That’s great, but have you given a thought to your CIBIL Score? We’ll hello you find out what the ideal CIBIL Score for your Home Loan is!

What is a Credit Score?  

A Credit Score, also commonly referred to as a CIBIL Score, is a numerical evaluation of your credit history.

Range of a Credit Score

A Credit Score usually varies between 300 and 900. When your Credit Score is calculated, it takes into account all the secured or unsecured loans that you have, or have had in the past. That’s why it’s called your credit history.

What is a Good CIBIL Score for an Online Home Loan?

If you have a CIBIL Score that’s anywhere above 700, you’re in safe territory.

700 is good, but can it get better?

Now that you ask, get a Credit Score closer to 900 and your bank or lending institution will have more faith in your repayment capability.

I have a good Credit Score

That’s good news! A good Credit Score can get you as much as 85% financing on the total cost of the property.

Why your CIBIL Score matters

Your CIBIL Score is an important factor in your Home Loan application. If your Credit Score is low, your application is likely to be rejected. A good Credit Score means that your Home Loan application could be fast tracked. Every bank has a minimum CIBIL Score. This is used as an indicator for acceptance or rejection of your application.

A score above 750 is termed as a good Credit Score.

A score of 350-750 is average, or possibly unacceptable

Any score below 350 is poor

How you can improve your CIBIL Score for a Home Loan

Here’s your guide to improving your Credit Score for a Home Loan.

A little financial discipline goes a long way.

Timely payments

Pay all your bills on time. Remember to pay the full amount. A part payment will be reported as overdue and no bank appreciates late payments.

Do not exhaust your credit limit

Keep those outstanding balances as low as you can. This will help your Credit Score.

Review your Credit Score periodically

Keep an eye on you Credit Score. Check it regularly, to avoid any unexpected surprises when you apply for any financial products.

[Source: https://blog.bankbazaar.com/what-is-the-perfect-cibil-score-for-a-home-loan/]