It is important to check CIBIL score before buying a home because with increasing income, majority of us cannot afford a house entirely on our savings. Home loans help us achieve our dream of buying a place of our own. But, the loan application and approval process can be tiring unless you have a good credit score. Credit Information Bureau (India) Limited provides information on your credit score and credit history. It’s advisable to check CIBIL score before buying your house.
Importance of CIBIL score for buying a home
All banks and financial institutions source and report loan and credit card transaction details of all account holders to/from credit information bureaus like TransUnion CIBIL. CIBIL is considered as the first credit information bureau. CIBIL records credit history of consumers as well as companies. When you apply for a Bajaj Finserv home loan, the lenders approach CIBIL to know your credit score and credit history. Credit transactions, credit card payments and loan history are analyzed by CIBIL to calculate a CIBIL score. Timely credit card and EMI payments on loans are major factors taken into consideration when determining ones credit score. Basically, the score will be an output of all your credit transactions provided to CIBIL by your lenders.
The credit score determines your creditworthiness. As the credit score reveals your capacity to repay the loan, home loan lenders will consider your application accordingly. For example, if an applicant has not paid EMIs for a loan on a regular basis, the bank will reject the loan application.
CIBIL score comprises a three-digit number varying from 300 to 900. Any credit score above 700 is considered as a good score for acquiring a loan. CIBIL data states that people with 750 and above CIBIL score enjoyed more than three-fourth of the home loan.
Importance of CIBIL Score for Home Loan
It would be ideal to procure a home loan faster and as per your budget requirements. Before you purchase a house or even pay token money to the seller, it’s better to check CIBIL score because the token amount has increased along with rise in real estate prices. It’s possible that your loan may be denied due to bad credit history. What would happen if you had paid the token money before your loan application, but the loan was denied? In this case, you will also lose your token money.
Also Read: How to Get a Perfect Credit Score
Sometimes a mistake on the part of the lender may result in flawed credit report, thus impacting your credit score. It could be an incorrect credit card outstanding reflecting in the CIBIL report or The EMI paid for a certain loan is not showing up on CIBIL. These errors should be fixed before the home loan lenders contact CIBIL for credit score. In such cases, you will have to bring it to the notice of the concerned lender, looping in CIBIL. To make sure you face no obstacles in buying your dream home, check CIBIL score to report erroneous data, if any, on time. This will ease the entire process of approval and disbursal of home loan.
RBI mandate states that credit score and report by credit information bureaus should be accessible to everyone annually. Follow these steps to check CIBIL score:
- Go to the CIBIL website.
- Create a user account with your name, phone number and email address.
- Next, you will have to update personal details such as address, date of birth, identity proof including Aadhar card number and PAN card number.
- An OTP will be sent to authenticate the user.
- After submitting required details, the page will redirect to user dashboard that displays your CIBIL score. You can also acquire the credit report from this website.
Thus, with this annual check, you can maintain a clean credit history.
With Bajaj Finserv MARKETS, applying for a Home Loan is a simple and completely hassle-free process. What’s more? The process is online and requires minimal paperwork and if you are eligible for PMAY scheme, you can enjoy additional benefits under Pradhan Mantri Awas Yojana scheme. So why wait? Get your home loan with Finserv MARKETS today and make your dream of owning a home, a reality!
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