The Credit Information Bureau (India) Limited (CIBIL) is one of the most well-known credit information firms in India, and as such, it calculates and provides a creditworthiness score known as the CIBIL. A CIBIL score closer to 900 is considered to be “healthy,” while a number closer to 300 is considered to be “weak.”
Listed below are the top nine things you can do to improve your chances of having your application for a home loan approved, even if your CIBIL score is only average. But for that, first know how to check cibil score.
- Learn the steps involved
Credit reports and scores are two different things. Although the two are connected, they do not have the same meaning. A credit score uses a number of variables to estimate your propensity to make loan payments on time, whereas a credit report details the types of credit used and whether or not those payments were made on time.
- Bring a friend!
If you need help getting a loan because of a low credit score or a lack of verifiable income, you can apply for the loan together with another person by listing them as a co-applicant. Your application’s chances of being accepted are higher if you have a co-applicant who has better credit than you do and a reliable source of income; the lender will also likely offer you a more favourable interest rate because of this additional security.
- Ask for a larger initial investment.
For example, if you apply for a loan to buy a house that costs INR 10 lakhs, and you have a substantial down payment of INR 4 lakh, the bank or financial institution will have more faith in your ability to repay the loan, increasing the likelihood that you will be granted the money. You will need to consider where the money for the down payment will come from; if your CIBIL score is poor, having a sizable emergency fund is a good bet.
If things don’t work out throughout the term of the loan, having adequate cash on hand or the ability to swiftly pay off debt assures lenders that they won’t be trapped with non-payments.
Additional Read: Top Myths About CIBIL Score
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