Blog February 11, 2025
Buying a flat is one of the most significant financial decisions you’ll make in your life. Whether you’re eyeing 2 BHK flats in Kochi or exploring flats for sale in Tripunithura, your credit score plays a pivotal role in securing a home loan with favourable terms. If you’re planning to invest in property with the best builders in Kochi, a healthy credit score is your golden ticket to a smooth and stress-free process.
But what if your credit score isn’t where it needs to be? Don’t worry—improving your credit score is entirely achievable with the right strategies. In this blog, we’ll guide you through actionable steps to boost your credit score and answer some frequently asked questions to help you navigate this crucial aspect of home buying.
When you approach banks or financial institutions for a home loan, your credit score is one of the first things they evaluate. A high score not only increases your chances of loan approval but also helps you secure lower interest rates. For instance, if you’re looking at flats in Tripunithura developed by top builders in Kochi, a strong credit score can save you lakhs over the loan tenure.
On the other hand, a poor credit score can lead to higher interest rates or even loan rejection. So, before you start browsing 2 BHK apartments in Kochi, it’s essential to ensure your credit score is in excellent shape.
Check Your Credit Report Regularly
Start by obtaining your credit report from CIBIL or other credit bureaus. Look for errors, discrepancies, or outdated information that could be dragging your score down. Dispute any inaccuracies immediately to ensure your report reflects your true creditworthiness.
Pay Your Bills on Time
Your payment history is the most significant factor affecting your credit score. Late payments, even by a few days, can negatively impact your score. Set up reminders or automatic payments to avoid missing due dates.
Reduce Your Credit Utilisation Ratio
Aim to use no more than 30% of your available credit limit. High credit utilisation can signal financial stress to lenders. Pay down existing balances and avoid maxing out your credit cards.
Avoid Applying for Multiple Loans or Credit Cards
Every time you apply for credit, a hard inquiry is recorded on your report, which can lower your score. If you’re planning to buy flats in Tripunithura or other parts of Kochi, avoid taking on new debt until after your home loan is approved.
Maintain a Healthy Credit Mix
A balanced mix of secured (e.g., home loans, car loans) and unsecured (e.g., credit cards, personal loans) credit can positively impact your score. However, only take on credit that you can manage responsibly.
Keep Old Accounts Open
The length of your credit history matters. Even if you no longer use an old credit card, keeping the account open can help improve your score.
Request for Late Payment Forgiveness
If you’ve missed a payment in the past, consider reaching out to your lender and requesting late payment forgiveness. Some lenders may be willing to remove the late payment mark from your report as a goodwill gesture.
What is the fastest way to boost my credit score?
The quickest way to improve your score is by paying off outstanding debts, reducing your credit utilisation ratio, and correcting any errors on your credit report.
How can I increase my CIBIL score immediately?
While there’s no instant fix, paying down high balances and ensuring all your bills are paid on time can lead to noticeable improvements in a short period.
Is the CIBIL score updated daily?
No, the CIBIL score is updated periodically, typically when lenders report your credit activity to the bureau. This usually happens once a month.
What is considered a poor credit score?
A CIBIL score below 650 is generally considered poor and may make it challenging to secure loans or credit cards.
How much can my CIBIL score increase in one month?
While the increase depends on your financial habits, it’s possible to see a jump of 20-50 points by paying off debts and maintaining a low credit utilisation ratio.
How can I achieve a 900 credit score in 45 days?
Achieving a perfect score in such a short time is unlikely. However, consistent efforts like paying bills on time, reducing debts, and maintaining a healthy credit mix can significantly improve your score over time.
How do I ask for late payment forgiveness?
Contact your lender directly, explain your situation, and request them to remove the late payment mark from your credit report. Be polite and emphasise your history of timely payments.
Improving your credit score is a journey, not a sprint. By following these steps, you’ll be well on your way to securing the best possible terms for your home loan. Whether you’re investing in 2 BHK flats in Kochi or exploring luxury apartments in Tripunithura, a strong credit score will make the process smoother and more affordable.
If you’re looking for trusted developers, consider partnering with the leading builders in Kochi like Siddhi Homes. With a reputation for quality and transparency, they offer some of the finest residential properties in Tripunithura and beyond.
Start working on your credit score today, and take the first step towards owning your dream home in Kochi!
