credit score

Know the Factors That Affect Your CIBIL Score for Home Loan

Finance

Are you planning to buy a home loan? If yes, it is important for you to know how a poor score can affect your eligibility. Thus, it would not be wrong to say that maintaining a good score is absolutely important for the borrowers.

Talking about CIBIL, it stands for Credit Information Bureau of India that does the task of collating loan as well as credit card. However, one thing that needs to be mentioned here is the fact that usually, credit bureaus take into account many parameters as far as deciding the final credit score is concerned.

Talking about CIBIL Score for home loan, there is no denying the fact that a score of 650 and above out of 900 is considered to be good enough in grabbing the best deal. Thus, you can say that maintaining a good score is important, if you want to enjoy a hassle-free journey. And, that can only happen, if you pay attention towards some important factors.

So, let’s now take a look at some of the important factors, if ignored can adversely affect your credit score.

Not Depositing Enough Cash in Your Loan Account: Many of you will surely agree on the fact at times people have to face a lot of issues related to delayed or non-payment of a loan. Yes, if you want your home loan installments to be paid fully on time, you can opt for a service called auto-debit and for that you need to have enough money in your bank account. And, in case, if that does not happen, you will miss your timely loan repayments, which ultimately brings down your score. So, make sure you have enough funds in the account so that your monthly installment can easily be auto-debited.

Owning Multiple Credit Cards: If you think that owning multiple credit cards can work as a status symbol, you might be wrong. The more cards you have, the better you need to maintain them so that it won’t affect your score. There are higher chances that you will miss out a payment for one or two and this in return can strain your hard-earned money. So, be careful while managing your card properly.

Read Also: Which 7 Factors That Affect Your CIBIL Score

Delay in Credit Card Payment: If you use your credit card frequently, you will surely agree on the fact that how a delay in the payment can have an adverse effect on your three-digit numeric summary. Even if you miss a single payment, it can hamper your score badly. And, if that becomes a habit, you can imagine the damage.

So, if you want to feel relaxed, all you can do is set a reminder on your phone regarding the due date so that you won’t miss a single payment. What you can also do is that opt for an auto-debit facility, which allows you to enjoy a healthy score.

Hope, you will keep the above factors in mind that affect your CIBIL score for home loan and can have a smooth loan journey ahead!

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