A bad credit score affects a lot more than your credit. But your credit worthiness affects a lot more than your buying capacity on credit or your ability to borrow money. It can affect whether you get a job or your insurance payment or how your personal relationships work. Young Indians, with poor credit scores face hurdles along their way and ultimately it takes a toll on their buying abilities. At its heart a credit score is a mathematical prediction of your ability to pay your debts. Financing a home continues to be impacted by your credit history. Though there are certain ways to get a home loan with poor credit score, most of the time holder of a low credit score is shut out of the market unless a large down payment can be ponied up.
Young people have just started out in life, so to match the criteria and achieve a good score becomes a bit complicated and hence your abilities are at stake. A bank demands your stability in your job, the time period, whether self-employed or working for a company, any assets in your name all these things add up to boost your personal credit score, so to manage this is a herculean task.
A poor credit score means you are charged higher rate of interest, given a smaller credit limit or rejected outright. Maintaining a good credit score is important even if you are not borrowing money. For first-time home buyers it is necessary to maintain a good CIBIL score and they must work on improving it. A high CIBIL score can help you obtain a home loan at a lower interest rate.
While the types of debts you carry have a 10% impact on your credit score, making regular return payments will impact your credit ratings by 35%- making your payment history a single most important factor influencing your credit rating. Provided you make every mortgage payment on time your credit score will gradually increase. Your credit rating can be affected by your repayment history, your increasing the credit limit or your unsecured and multiple loans.
A good credit history ensures a good credit score so work on improving your ratings and ability to procure a safe home loan at a reasonable interest rate by just making your repayments of any loans on time, by maintaining a healthy mixture of secured and unsecured loans, monitor your bank accounts regularly so all your payments are made on time and regularly check your credit history by opting for credit information reports to correct any issues or errors. Have a good score to get a good loan.
Read More About………Tips to Boost Your Credit Score before Applying for a Home Loan