Amongst many aspirations of today’s people, the top most priority is their own home. However, most of the people are unable to afford a home due to rise in real estate price or lack of surplus cash. A home option takes an individual a step towards the dream of owning a home.
Whenever a person wishes to take any kind of loan may it be a personal loan or home loan or vehicle loan, one needs to submit the general documents to the lender. This document helps the lender to access the repayment capacity of an individual. One of the essential document is CIBIL and this document gives a lender briefing about his/her credit repayment behavior.
CIBIL is a credit score of a person and it is an abbreviation of The Credit Information Bureau which is licensed by Reserve Bank of India. This score is also referred to as credit score and is a three-digit numeric summary of one’s credit history. Usually, it is advised to keep the credit score range between 300-900 points. If the credit score is above 750 then it helps you to get the loan easily granted. If the CIBIL score is lower than 750 then the individual may have to pay a higher interest rate or the loan application stands canceled.
How can individual check CIBIL score online for a home loan?
Following steps can help one to check the CIBIL score online:
To check the CIBIL score one needs to visit the CIBIL website. On the website one can check the CIBIL score per year. To check the CIBIL score you can visit https://www.cibil.com/freecibilscore.
Once the portal comes on the screen he/she need to create user account and password. Also, some of the details such as first name, last name, gender and date of birth must be provided.
Once the details are been filled one need to choose identity proof type. Income tax ID number, PAN card, Voter ID, Driving license number, Passport or even ration card number can be chosen. One need to input the number of corresponding Identity proof.
Fill in the details such as address and contact number.
After filling in all the details and accepting the terms and condition he/she will receive the OTP on the provided contact number. One need to enter this OTP and proceed to the next step.
Once the OTP is been submitted, applicant will be directed to the page where the credit score report can be seen.
How to maintain a good and healthy credit score?
Following simple steps can help to maintain the required score:
- Pay the EMI’s on time
- Avoid credits cards which are dormant
- Limit the use of one card or set the payment reminders
- Within a short period of span do not apply for a number of loans.
- Choose lengthy loan tenure and try to make part-prepayment.
Once he/she is done with the repayment of the loan, CIBIL report can be checked to ensure that the loan account is closed.
It is necessary that one do check the CIBIL score online. A low credit score can increase the risk of rejection of home loan whereas high CIBIL score can increase the chances of successfully availing the loan with an effective interest rate.