To buy a house, most individuals require home loans. For home loans, lenders first check an applicant’s credit score. Ideal credit scores for home loans must be 750 or above. A score of 637 is considered low by most lenders. However, with the help of the below-mentioned tips, one can try availing a home loan with a low credit score:

  1. Try to clear most of the outstanding debts to improve the credit score. The faster this is done the higher the chances of improving credit score.
  2. A joint application for a home loan is another way to easily get a home loan with a low credit score. A joint home loan increases the chances of a home loan application being approved.
  3. In case of loan or credit card payment default, try to work towards a settlement with the lender. After paying off the settlement amount and getting a no-objection certificate, it becomes easy for you to apply for home loans. This could, however, depend on the bank or lender and may have some impact on the credit score if used frequently.
  4. Try to approach the bank or financial institution with whom you have had a long-standing relationship. Customer loyalty can sometimes help in getting a home loan despite bad credit scores. 

A score of 637 can always be improved over a period and a fresh home loan application can be made after the score crosses the 700 marks. This can result in better interest rates and flexible loan repayment conditions.