Getting approval for the loan or credit card is the real struggle. There are many terms and conditions based on which the lender approves applications for a home loan or credit card.
Housing loans are secured loans and people who apply for either looking for a loan because they do not enough money to pay for the whole house. But, credit cards are taken by those having a salary or may not be earning. But, each of the two is different in its own respect.
So how is the lender going to know whether you are suitable for the product or not? For such purposes, lenders take into your income as one of the main eligibility based on which they will consider your application for the approval. Another important factor is your CIBIL score. The minimum CIBIL score for home loan is different for that of a credit card. In this article, we will talk by keeping in mind these two products.
CIBIL Score for Home Loans
Home loans are secured loans so the lender needs to trust you for the repayment even though it has your property as security. If you manage to have CIBIL or credit score of 650 or above, you can expect smoother loan approval and a lower rate of interest. Those who do not have any credit history also get the loan but the rate is comparatively higher.
CIBIL Score for Credit Cards
For a lender to know that you can repay the credit card, you must have good income and CIBIL score. Having a minimum score of 750 can fetch you great deals and some of the best credit cards available in the market.
How does your CIBIL score decreases?
For every CIBIL enquiry, your CIBIL score is decreased by around 15 points. Make sure you know where from you can get a loan and apply accordingly otherwise your score starts decreasing.
How can you maintain a good CIBIL score?
Nothing in this world is impossible so is maintaining a disciplined life. Payments habits affect your credit history and score and if you do not take it seriously, you might either become a defaulter or loose the best options available in front of your eyes. So, if you can manage to keep the below things in mind, it will really be helpful in improving your CIBIL score.
- Avoid carrying credit cards that are of no use.
- Do not increase your credit limit as it affects your credit score.
- If you are using more than 30% of your credit card limit, it will affect the score.
- No-loan people also have a bad score of no credit score.
- Prepayment of the loans also affects the credit score.
- Late payments of the loan EMIs or the credit card bill.
- Positive payment history will help build a good CIBIL score or credit score.
We hope that you have understood the ways through which you can upgrade the score and also the minimum score required for credit card and home loan. So, prepare yourself accordingly.