According to a recent report by Home Credit India, two out of three borrowers in the country are unaware of their Credit Score. The credit score is an indicator of a person’s creditworthiness. The banks across the country consider the credit score as a parameter that helps in understanding borrowers’ eligibility for repaying loans. This makes it absolutely important that you work on your credit score long before you consider investing in a home.
Here are some tips on improving your credit score
Your credit score
If you have not checked your credit score, do it right now. See what your scores are. A credit score is a magic number between 300 and 900. The higher the value, the more your creditworthiness. If you are planning on a loan sometime soon, ensure you keep your scores high.
Repayment of loans
Paying EMIs on time is the best way to maintain a good credit score. This includes paying credit card bills on time too. Work with your bank if your scores are not up to the mark.
Credit card dues
Do you max out your credit card often? It could spell trouble and ruin your score. Pay up the entire amount on time.
Your loan mix
Are you in the habit of taking personal loans at the drop of the hat? Hold on, it does not help your credit score. A car loan adds to your credibility, home loan does too. So stick to a fair mix when it comes to borrowing.
Your co-applicants status
Your credit score will get affected if you are a joint applicant for a loan taken by someone else. The repayment of these loans will affect your credit score as well.
Do not enter into an agreement with the bank for settling credit cards or loans. What could be a boon now will affect your credit score in the long run.
A high credit score is ideal for easy processing of loans. If you score is low, you do not have to worry about it, work with your bank and get the numbers higher before investing in your home. At Fortius Infra, we help you with the process. Contact us.