CIBIL Score Post Mortgage Loan

CIBIL Score Post Mortgage Loan

admin
30 August 2022

A user’s credit score is known as a CIBIL Score. Well, this is a three-digit mathematical representation of a person’s credit profile and a summary of their credit record. And this is derived from the previous credit activities, such as borrowing and repayment patterns that banks and NBFCs routinely report with CIBIL (all of which are included in the user’s CIBIL Report).

The CIBIL Report has ‘Accounts’ and ‘Enquiries’ sections that contain the information which determines the score, such as loan or credit card accounts, payment histories, balances owing, and the number of days past the due date. 

According to the credit information report, this three-digit score, which ranges from 300 to 900, reflects your credit history and behaviour. Here’s an overview of how lenders assess your credit score when you are applying for a Mortgage Loan:

  • Credit scores between 350 and 549 are bad, and in this case, the loan application gets denied.
  • Eligibility for a Home Loan lies between 550 and 649 scores, but there is still a potential for denial or disadvantageous loan terms.
  • You can get approval for a loan against a property with a score of 650, but you’ll get better conditions if your score is 750 or above.

A minimal credit score of 650 should just be your starting point when requesting a Mortgage Loan. By being strict about making regular monthly payments on existing debt, minimising your credit card usage, and avoiding multiple loan applications at once, you can quickly raise your CIBIL score.

How to find the CIBIL Score?

Once you gain knowledge of the system and are aware of the CIBIL score, you need to qualify for a Mortgage Loan. You should check it yourself before the loan application. On the CIBIL website, you can do this once a year for no cost. Check out the CIBIL check process below: 

  1. First, select “Get your CIBIL score.”
  2. For the next step, provide the required personal, financial, and PAN information.
  3. Enter the OTP issued to both your email and cell phone number for verification.
  4. And lastly, review and report your CIBIL score.

Tips For A Positive Credit Profile

Your CIBIL score is calculated on your credit history and past payments, but it will also affect how easily you can get credit in the future. 

  • Pay your bills on time since lenders don’t like it when you don’t.
  • Reduce your credit usage, keep your balances low, and maintain proper utilization. Additionally, apply for new credit cautiously.
  • Keep a healthy balance between secured (such as a Mortgage or Car loan) and unsecured (such as a Private Loan or credit card) debt. Too many unsecured loans could be looked at unfavourably.
  • Monthly verify your joint, guaranteed, and co-signed accounts. Keep in mind that you are equally liable for late payments on co-signed, guaranteed, or jointly owned accounts and that the negligence of your joint holder (or the guaranteed individual) may prevent you from getting credit when you need it.
  • Throughout the year, review your credit history periodically. To prevent unwanted shocks, regularly check your CIBIL Score and Report (like a rejected loan application). Periodically reviewing your report will also notify you of any potential inaccuracies. If you find any discrepancies, you can report them on the CIBIL website or ask the lender to notify CIBIL of the rectification.

You may be a good bet for the lender. However, to be able to acquire credit, you must have an excellent credit history. Therefore, keep an eye on your credit report frequently to ensure you are credit-conscious and prepared for loans when you need them most.

Conclusion

Indians place a strong priority on property ownership, especially for a Home Loan processing fee. It also serves as a symbol of security and social standing. However, over the past few years, the country’s real estate prices have experienced a significant uptrend in keeping with the increasing demand for homes. Due to this, owning a home has become a costly prospect that, for the majority of people, may be challenging sometimes without a Mortgage Loan. Moreover, we can conclude that approaching facilities like this can land you in big trouble. But with little cautiousness, all these can be ignored as well.

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