What is Credit Score?
Home loan interest rates or any other loans will have will get affected more because of credit score. Credit score shows the financial image of a candidate. It consists of the complete credit details of the candidate like – how many credit cards they have, how many times you have taken the finance, how good you at repayment of loans, how many loans you have, how many times you delayed in payment of your EMI, bounce rate of your cheque’s, how often you make use of credit card?, etc. A Credit score is generally referred in terms of CIBIL Score. Home loan interest rates will be low if you maintain a good credit score and lender give low interest rates for loans if you maintain the credit score.
Why is credit score is important?
Credit score shows the ability of the repayment of a candidate. A candidate who repay the loans and finance on time. Will have the good credit score. The credit score will start from 300-900. A candidate who didn’t take any loans there credit score is zero. Lenders consider the credit score in between 700-900, which is considered as the good credit score and candidates can get many benefits with good credit score. And the candidate with bad credit score has to pay the high-interest rates for their loans and their future loans will not get approved, even if they approved they need to pay high-interest rates. Home loan interest rates will be low if you maintain a good credit score.
How to improve credit Score?
A Credit score can be improved by clearing all your loans on time and don’t keep on closing and opening of new accounts for getting credit. Stop taking of loans and finance until you pay the previous loans on time. Check your credit score on quarterly or half yearly basis to get the eligibility for applying for a loan. Don’t apply for any loans until you improve your credit score, otherwise it will impact on your credit score and lenders consider you as credit hungry and they offer you with high-interest rates and the chances of not getting approval for the loan will be more. If you’re looking for home loans in Hyderabad, get in touch with us- firstname.lastname@example.org. We are glad to help you.
On what basis credit score is calculated?
A credit score is calculated based on your credit history. How much you’re good at paying the loans. How many loans you have taken, how often you take loans, how many loans you have, how many times you delayed in payment of EMI, etc. A credit score is calculated by agencies namely Experian, CRIF High Mark Equifax and TransUnion and CIBIL. They follow the FICO (Fair Isaac Corporation) strategies to find the credit score. A Credit score is also referred as FICO score. Home loan interest rates in Hyderabad you can get by registering and paying a small fee on official website through the mail you will get your credit score.
How to take the loan if you have bad credit score?
You can take the loan, by adding your family members(Blood relation), spouse as co-applicant. They must have the good credit score. By adding co-applicant you can increase the amount of loan. Home loan interest rates will be high if you have bad credit score but you can improve to get the low interest rates for loans.
What are the benefits of Credit score?
1.You will get loan without any hassle
2.Get instant approval for loan
3.Get the loan beyond your eligibility limit
4.Offered with low-interest rates
How to avoid getting a bad Credit score?
I.Don’t take more than two loans
II.Don’t take too many credit cards
III.Pay the credit card dues on time
IV.Don’t take finance and loans often
V.Don’t apply for loans more than one bank at a time.
VI.Check for credit score before applying for a loan.
VII.Understand the rules of lenders before taking a loan.
All these points will help you to understand better about credit score and precautions to take for maintaining a good credit score.