CIBIL score is the key component that helps lenders determine if you are eligible to avail a home loan. Ranging from 300 to 900, CIBIL scores are based on- and impact your financial journey.
The aspects affected by your CIBIL score are:
Loan approvals
If you are applying for a home loan, the first thing your financial institution will check is your CIBIL score. Your approval for any kind of credit is mainly dependent on your credit score.
Since lenders need to find out if an applicant is reliable and less likely to default on payment, they turn to CIBIL scores that help in knowing the creditworthiness of the applicant. A good CIBIL score for home loans is 750 and above.
hat lowered his CIBIL score.
Loan amount:
If you have really good CIBIL score that is 800 and above, it will increase your chances of getting a good amount on home loan without any hassle. This is because most lenders will not see you as a risk since you have been making payments on time and also utilizing your credit wisely.
Common advantages of a good CIBIL score:
- Easily availing a line of credit
- Instant approval for home loans
- Better negotiating power for loans
- Low interest rates on home loans and even credit cards
- Getting approval for higher loan amounts and card limits
For anyone trying to apply for home loans, online or in person, it’s important to have a good CIBIL score. A bad score is very likely to get your application rejected and lessen your chances of getting reasonable interest rates on your home loan. Therefore, you should make sure that you will use credit responsibly, make timely payments and get less number of personal loans and credit cards.
