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3 Ways to Improve Your CIBIL Score and Secure a Low Interest Rate Home Loan

· home loan

Buying a home is a very common dream shared uniformly by all individuals belonging to different income groups. In addition, the recently announced policies have stipulated the demand for Home Loans, which has also added to the importance of CIBIL score. Now, people are paying more attention towards their CIBIL scores in a bid and quest to obtain low Home Loan rates. As the thing stands, a healthy CIBIL score is of utmost importance for people yearning for a Home Loan. The lender uses it to calculate the interest applicable to an applicant. Hence, in a way, we can say that CIBIL score is the key to success.

Moving on, if you know you’ll be needing a Home Loan in next couple of months or years, start building your CIBIL score from now. The efforts will pay off and you’ll get the best Home Loan offers possible. If you need help, here’s how you can start building your CIBIL score.

Clear All Your Outstanding Credit Card Bills
If you own credit cards, make sure you pay off the bills in a timely manner. Also, refrain from over utilizing the credit limit in order to avoid affecting your CIBIL score. Just for reference, it is suggested not to use more than 40% of the available credit limit.

Take Small Financial Loans and Repay them in a Timely Manner 
As financial experts say, the credit eligibility can be improved only by taking credits. In the beginning, you won’t be able to apply for a high-value loan due to your low CIBIL score. Hence, stick to small value loans, and make sure to repay them in a timely manner.

Keep a Healthy Balance between Secured and Unsecured Loan  
Applying only for unsecured loan or vice versa can adversely affect your CIBIL score. So, refrain from such practices and maintain a healthy balance between secured and unsecured loans to ensure a diverse portfolio.

Consider the above mentioned points in mind as the role of CIBIL Score for Home Loan interest rates is crucial. So, always pay your debts on time and keep your CIBIL Score healthy.

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