Having access to a home loan when you need it depends on several factors, with your CIBIL score being an important one. It not only influences your home loan approval but also affects the interest rate you are offered. A higher score helps with better terms, while a lower score can limit your options. By focusing on how to improve your CIBIL score, you can create a stronger financial profile and enjoy smoother access to loans.
What is a CIBIL Score and Why Does it Matter?
A CIBIL score is a three-digit number between 300 and 900, generated by TransUnion CIBIL, one of India’s main credit bureaus. It is calculated based on your borrowing history and credit management. A score of 750 and above is generally seen as a good score and can improve your chances of loan approval. In short, your score acts as a financial report card. The higher your score, the easier it becomes to borrow on favourable terms.
How to Do a CIBIL Check for a Loan?
Before applying for a loan, it is wise to conduct a CIBIL check. This lets you review your profile and see if you need to make improvements.
Ways to check include:
- Visiting the official CIBIL website and signing up for a report
- Using free score-checking services provided by some lenders
When you log in, you provide details such as your name, date of birth, and PAN. After verification, you can instantly see your current CIBIL score.
Factors That Influence Your Loan CIBIL Score Check
Several aspects of your financial behaviour shape your score:
- Payment history – Missing EMIs or credit card dues lowers your score, while consistent and timely payments can improve it.
- Credit utilisation – Using more than 30% of your credit limit regularly can indicate over-dependence on credit. Keeping your credit usage lower can help you build a better score.
- Credit mix – A balance of secured loans (such as home loans) and unsecured loans (such as credit cards) shows that you can handle different credit types responsibly.
- Length of credit history – Older accounts work in your favour as they reflect consistent repayment behaviour.
Hard enquiries – Every time you apply for credit, a hard enquiry is recorded. Too many applications in a short period can reduce your score.
Practical Ways to Improve CIBIL Score
If your current CIBIL score is low, it can be raised steadily with good practices. From the documents, here are some of the effective steps:
- Pay all dues on time – Even one missed EMI can hurt your profile
- Avoid frequent loan applications – Space out applications to avoid multiple hard enquiries
- Maintain old accounts – Do not close long-standing credit cards unnecessarily
Having a s can help you secure better terms and a competitive interest rate. Pay dues on time, manage your credit utilisation, and perform regular CIBIL score checks to strengthen your profile steadily.
Disclaimer: No Business Standard Journalist was involved in creation of this content