Benefits Of A Good CIBIL Score In Securing A Home Loan

When it comes to buying a home, a home loan is a critical requirement. Before getting your dream 3 BHK residential apartment in Thane, you need to be able to take a home loan. Banks and financial institutions only want to give a home loan when they feel assured about the borrower’s ability to return the money. To judge the creditworthiness of a borrower, they refer to their CIBIL Score.

The CIBIL (Credit Information Bureau India Limited) Score, also called credit score, is a three-figure number between 300 and 900 that showcases your past credit history and whether you have paid your bills on time or not. The higher the score, the better your chances of securing a loan. Ideally, a score of 750 and above is considered to be good.

Advantages of a Good CIBIL Score for Home Loan

Offers Multiple Options

People with a high credit score tend to have a lot more offers for home loans than those with a lower score. This is because a higher score proves creditworthiness that encourages a lot more lenders to give the borrower a loan.

Low-Interest Rates

Having a higher credit score also gives you home loan at lower interest rates. This can lead to significant savings in the long run while making your dream of owning a luxurious property in Thane a reality.

Longer Tenure

A home loan is not a small amount and can cause a significant dip in your monthly budget. With a high credit score, banks may offer you a longer tenure thus reducing your monthly burden. This allows for timely repayment of the loan which further strengthens your credit score.

Higher Loan Limit

Simply getting a home loan is not enough. It is essential to be able to secure as much amount as you need while receiving competitive interest rates. This possibility is much higher with a good CIBIL Score. Often, people with a lower score may qualify for a loan but it is only a partial amount of what they need requiring them to take multiple loans.

Fast Processing of Home Loan

To be able to get your pick of luxury flats in upcoming real estate projects in Thane, you will want a home loan that can be quickly secured. Banks are far more trusting of borrowers with a high credit score encouraging them to process the documents faster.

Tips to Improve CIBIL Score

  • Always pay your credit card bills and other due within the time limit.
  • Avoid taking loans unless necessary. Taking too many loans can dampen your credit history.
  • Apply for fewer loans as too many checks on your score followed by a rejection could worsen your score. Further, ensure you meet the eligibility criteria before applying for a loan.
  • Avoid maxing out your credit cards every month. Instead, use around 30% of your credit limit.

Conclusion

A good CIBIL Score allows for faster home loan processing along with lower interest rates. To ensure you get the best deal for your loan, start following the above tips from today.