Planning to apply for a home loan? Then, you must be quite familiar with the term CIBIL score. Can CIBIL score affect your home loan application?- This is quite a common query every home buyer looking for an easy home loan is likely to be inquisitive about. To help you in this regard, this post has come up with a fair solution.
Full form of CIBIL, formerly known as Credit Information Bureau (India) Limited, is India's first Credit information company (CIC) started in August. Trans Union CIBIL collects and maintains records of payments pertaining to loans and credit card. To access the CIBIL credit reporting system, you need to have a Cibil consumer login ID which will get you through the process.
Good Credit Score: A good credit score plays a significant role in improving the chances of getting a good amount of loan to buy your dream home. CIBIL score is the exact value that is determined after assessing the buyer’s credit files and this is how a person gets eligible for the desired credit. Getting qualified for a home loan is not a cakewalk! The financial institutions can reject your loan any time; but, in order to minimize the risk, all you need to make sure is your credit scores meet the limit stated by the concerned body. The more improved score you have, the bigger is the chance for you to get qualified for the home loan.
Credit Check: Credit check is a process of checking on the financial backing of an individual who is involved in the transaction of loans. Credit check ensures that the party has the required means to cover the loan that he is about to take.
Credit History: A credit history is the record of borrower's repayment towards his debts that he owes. A credit report has records from all the sources that the borrower has taken a loan from which is known as credit history.
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Different limits have been set by different banks to roll out a home loan when the score 700 is considered as a standard point to get qualified for the same. If your score is around the figure, you have a high chance to be eligible for most of the certified banks as well as financial institutions. Nevertheless, chances are there to be rejected, in case your score drops down below the number.
Being a credit card holder, you are quite likely to be aware of the adverse effects caused by the huge balance on your tag. The sooner you clear the dues, the better is the chance for you to enhance your chances to be qualified for obtaining an easy home loan. Thus, it is always advised to evaluate your credit report quite frequently and stay aware of your weak points, so that you can have a clearer picture of what requires to be done and what not.
Especially now when credit scores are considered as the highest parameter to verify whether the person is eligible for a loan or not, it makes quite sense that a good credit score is maintained from time to time. Now, what is the best way you can ensure this? Paying all your EMIs and bills on time can help you to a great extent by perking up your credit score to a significant height.
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