Borrowing a home loan is one of the biggest financing services that people in India utilise every year. However, certain minor expenses cannot be covered using this particular alternative. In such cases, opting for a personal loan for these additional expenses is highly recommended.
To make your loan acquiring process easy, you can even consider using a home loan apps. These easy loans apps are available online for download and can make the processing time reduced in half.
However, applying for a home loan or personal loan requires you to have a decent CIBIL score. If you are new to the working of credit rating and score, then this write-up will help you a great deal.
What Is An Ideal Cibil Score For Home Loans?
Credit or CIBIL score is a ranking provided to a potential borrower to understand their risk bracket. The highest level of CIBIL score that one can achieve is 900. However, when it comes to using a home loan app for borrowing personal finance, the ideal score can be anywhere above 750.
Certain online loan apps offer you this particular financing alternative for even a lower CIBIL score. However, in such cases, you might have to pay a higher amount of interest, since the risk involved in a financing firm is much greater.
Things That Can Affect Your Cibil Score
- Outstanding Bills
One of the first things that can affect your CIBIL score is your outstanding bills. Even if you are applying for a personal home loan using a home loan app, there are chances that your outstanding bills might get the application rejected. This happens because outstanding dues are considered while calculating the CIBIL score by financing firms.
- Pending Loans
If you are someone who has borrowed loans in the past, then make sure that all of them are being cleared on time. Pending loans can be another reason for your credit rating going down. While verifying a request made through a home loan app, agencies investigate your borrowing history. Hence, if you have unpaid loans, then it will reduce your chances of getting funds.
- Failed EMI Payment
Monthly EMIs is another thing that can affect your request made through a home loan app and credit score. If you fail to pay your EMI for a few months, then it will give you a bad credit history amongst borrowers. Therefore, it is always important to meet your EMI deadlines on time.
- Credit Card Dues
It is very prevalant these days to have a credit card and utilise it for bill payment. However, credit card payments also need to be settled on time if you wish to have a good CIBIL score. For borrowers who utilise financing alternatives frequently, not paying their credit card dues can result in a rejection of home loan application made through a loan app.
- Multiple Loan Applications
Multiple loan applications or requests made at the same time can affect your CIBIL score significantly. Not only will it get your home loan app request rejected but will also mark you as a risky transaction in the eyes of financing firms. Therefore, always avoid making such mistakes if you want a good CIBIL score.
Bajaj Finserv brings financing services like personal loans, home loans, business loans, and more. For each of these facilities, you will be able to find pre-approved online deals easily. These offers are created so that borrowers can reduce the loan processing time in half and make it hassle-free.
