Your CIBIL score is the single biggest lever on the home loan rate you are offered. A score above 780 typically qualifies for the lowest published rate, while scores below 720 attract a risk premium of 25 to 75 basis points.
Six habits that lift your score
Pay every EMI and credit card bill in full and on time for at least six months before you apply. One missed payment can pull your score down by 40 to 70 points.
Keep credit card utilisation under 30 percent of the limit. Request a limit increase rather than closing an old card, which shortens your credit history.
Avoid new loan or card applications in the 90 days before you apply for a home loan. Each hard enquiry causes a small dip.
Fix errors on your credit report by raising a dispute with the bureau directly. Wrongly reported overdue accounts are common and can be corrected in 30 days.
What lenders look at beyond the score
Banks also study your foir (fixed obligations to income ratio), employment stability and banking pattern. Keeping your foir below 50 percent and maintaining an average balance above three EMIs signals repayment strength.
Ready to take the next step?
Talk to the nSquare advisory desk for a plan tailored to your numbers.
