It is the dream of every individual to buy their own house. But, not everybody will have the funds to do so. That is where home loans come into picture. But, to get a home loan with ease, there are various impacting factors like income, credit score, employment stability etc. Amongst these, credit score is a very important factor. Usually, a credit score of 700 and above is considered a good credit score to buy a house in India. Let us now understand how to build a good credit score and
How To Get A Good Credit Score?
- Pay the outstanding dues on Time.
- Have increased credit limits on your credit card.
- Do not utilise more than 50% of your credit limit on the credit card.
- Reduce the number of unsecured loans held by an individual. Having too many unsecured loans reduces credit score.
- Keep regular track of the credit report by checking the credit score at frequent intervals to avoid incorrect information entered.
- Do not close the old credit card accounts where timely repayments were made. Showing good repayment history on your credit report gives a higher credit score.
- Avoid applying for home loans with multiple financial institutions. This will reduce credit scores and will result in home loan rejection.