There is no minimum CIBIL score for a home loan because it is decided by banks on the basis of your credit history and repayment ability. If you are going to apply for a home loan, the banks can check your credit history before deciding whether they approve or deny your loan application.
A very low credit score can reduce your chances of taking home loans. So, it is suggested to maintain your Piramal CIBIL Score of a minimum of 750 or more to make your hassle-free loan process. If you maintain a good credit history, you can get a home loan easily at a low-interest rate.
What is the CIBIL score?
A Credit Report is offered by the lenders or banks that give you a loan. A CIBIL score is referred to the 3-digit number that lies between 300 and 900. The closer the CIBIL score is to around 900, that is better to avail of the home loan easily. The bank checks the minimum CIBIL score for a home loan to determine your creditworthiness when you apply.
Does the CIBIL score affect the eligibility for your home loan?
Yes, the CIBIL score can affect the eligibility of your home loan because the lenders use it to determine your creditworthiness and decide whether you are eligible or not for it. If your CIBIL score is more than 750, it makes the high chances of your loan approval. But if your CIBIL score is around 450, then you may not be eligible for a home loan.
How to improve your CIBIL score for a home loan?
Here are the amazing tips you should follow to improve your CIBIL score and get a home loan quickly.
- Pay dues on time:
If you want to improve your CIBIL score, you should not miss any payments or EMI. If you have any outstanding payments, you should make them before the due time. You should never delay making your credit card payments. To avoid mistakes, you can easily set reminders for payments on your phone.
- Keep your credit use ratio low:
In another tip, it is suggested to request the bank to increase the limit of your credit card because it keeps the use of your credit card ratio low. It is also suggested to use the credit card as less as possible to improve your credit score.
- Check the credit report:
The easiest way to improve your CIBIL Score is to track the credit report frequently. Because it helps to eliminate the chances of any wrong information on your credit reports related to EMI, payments, etc.
- Keep the old accounts open:
It is suggested to do not to close your old accounts because the lenders get the idea about your credit score and repayment ability from your old accounts. If you want to take home loan approval quickly, then you should keep your old accounts with a lender for a long time.
Conclusion
If you maintain a minimum of 750 CIBIL Score or more, then it is considered a better score for home loan approval. It is suggested to people avoid applying for multiple loans because it affects their credit history.
