Five Ways To Increase Your Credit Score To Easily Obtain A Home Loan


It is a universal fact that buying a house is not easy. So, oftentimes than not, one has to take loans from the bank to be able to pay the hefty amount required to book a house. However, if you are a credit card owner, then you will certainly be asked to present your credit score which is considered an apt way to test a person’s financial credibility. But there are certain tips and tricks that can help you secure a good credit score, which in turn will help you secure a home loan with ease.

  • 1) Make Timely Credit Payments: The best way to ensure a good credit score is to pay all credit bills on time every month. By ensuring regular payment before due dates, you pave your way to a good credit score. If one maintains a good track record of clearing their credit bills on time, then it is a direct reflection of their repayment capacity.
  • 2) Limit your spending: This might be a no-brainer, but the best proven way to ensure that your credit score is maintained is to ensure that you do not max out your credit cards. A direct reflection of having bad credit practices is overspending and not paying your bills on time. So, it is always advisable to keep your spending habits in check to reap the benefits of a good CIBIL score.
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  • 3) Do Not Close Old Credit Accounts: Another determinant of credit score is old credit history. If one has an old credit card with good credit history, then they must not close the same as that would add on to creating a solid credit score and building their credibility.
  • 4) Ensure A Good Credit Mix: A good credit mix is an indication of a loan seeker to be capable of handling all types of loans and repaying the same on time. Thus, it is always advisable to keep a combination of secured and unsecured loans to enhance your credit score.
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  • 5) Track Your Credit Report: A person seeking to keep a good credit balance is always advised to keep track of their credit report. Frequently monitoring your credit report will help you spot any missed payments or loans on-time. This would also help you stay on top of any card unlawfully assigned in your name, identity fraud or thefts that might threaten to harm your safety.
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