Check CIBIL Score for Home Loan, Effects & Tips

25 MAY, 2021

The CIBIL score or credit score is an important parameter that determines your home loan eligibility. The score is a numerical representation of your credit worthiness ranging from 300 to 900. It is derived based on the loan repayment history, existing EMIs, credit mix, credit utilisation, etc. The higher your CIBIL score, the better are the chances of home loan approval. If you are looking forward to availing a home loan, it’s advisable to maintain a CIBIL score of 750 or above to boost your home loan eligibility.

Let’s understand how CIBIL score affects your home loan eligibility.

Effects of CIBIL Score on Home Loan

A poor credit score may reduce your chances of getting a home loan without any hassles. Whereas, a high credit score helps improve your loan eligibility.
A high credit score can help you secure the loan at a lower interest rate. Since a home loan is a long-term financial obligation, an attractive interest rate can reduce the overall cost of borrowing significantly in the long run.
Lenders may consider you a low-risk applicant if you have a high credit score. This will allow you to avail a high home loan amount with much better terms and conditions.
With a high credit score, it’s also possible to avail home insurance products at a comparatively lower premium

Below is a quick guide on how to check CIBIL score for home loan. Follow these steps and check your CIBIL score within minutes in a hassle-free way.

How to Check CIBIL Score Online?

Step 1: Visit the official website of CIBIL.

Step 2: Click on GET YOUR CIBIL SCORE

Step 3: Pick the subscription of your choice

Step 4: Fill in an online form providing all basic details such as name, address, ID proof, Date of Birth, loan history, etc.

Step 5: Post this, you’ll be redirected to the payment page, wherein you will be required to pay a nominal fee. You can easily make the payment through various modes such as credit cards, net banking, etc.

Step 6: On making the payment, you will be taken to an authentication page. Here, you will have to answer a few questions related to your credit history to authenticate your identity with CIBIL.

Step 7: Post completion of the authentication process, you will receive a detailed CIBIL report on your registered email address within the next 24 hours.

Also note that as per the guidelines of the Reserve Bank of India (RBI), individuals can fetch a free credit report once in a financial year. If you notice that your CIBIL score is below 750, ensure to work on improving it before applying for a home loan.

Mentioned below are some proactive measures that can be taken to improve the CIBIL score and satisfy the home loan criteria set by the lender.

Tips to Improve CIBIL Score

If you are already servicing a loan, ensure its timely repayment.
Decrease your credit utilization ratio.
Pay credit card dues on time. Do not close credit cards.
Maintain a mixed bag of credit i.e. secured and unsecured debt.
Check your credit report thoroughly and raise a dispute in case of any errors.
Do not make multiple loan applications.

By following most of the above-mentioned tips, you can improve your CIBIL score and home loan eligibility. So why wait? Check the CIBIL score, apply for a home loan, and take the first step towards purchasing your dream house, today!