CIBIL score of 670 !! Eligibility check for Home loan !!

POSTED BY parit ON October 15, 2013 7:43 am COMMENTS (4)

Hello friends ,

I have been earning since 2008 and I have maintained a tremendous financial discpline . I got married recently . I  used my complete credit limit to cover expenses in marriage . However i always payed my dues in full .After marriage , I applied for 3-4 credit cards ,out of which i got 2 .

I am now looking for a home loan and got my cibil report . I was expecting a better score as i have never defaulted 🙁 . However ,I was in for a shock as my cibil score was low . In hindsight , high credit utilization and too many cibil inquiries due to new credit card applications were a mistake.

I am now scared as the effect this will have on my home loan . I will be applying for my home loan in 2 months time . What should i do to mitigate the affect of low cibil score on my home loan approval process .

Thanks ,

Paritosh

4 replies on this article “CIBIL score of 670 !! Eligibility check for Home loan !!”

  1. Credexpert says:

    Dear Paritosh,

    Yes, the high number of enquiries and 100% utilization of your credit card limit have negatively impacted your credit score.

    These reflect a credit hungry behaviour and could be viewed negatively by lending institutions, while evaluating your credit worthiness for the Home loan.

    We would suggest;
    • Do not make any more credit applications resulting in increased enquiries
    • Make timely repayments against all your credit cards and/or loans
    • Keep your Credit utilization up to 30 – 35 % which is considered to be ideal
    • Consider closing one or more of your credit cards, as they are unsecured in nature and too many unsecured loans / credit card on your credit report will further deplete your credit score
    • Postpone your Home loan application until your credit score improves. This is to ensure that your application is not rejected by the lending institution

    Regards,
    Credexpert
    http://www.credexpert.in

  2. ashalanshu says:

    Dear Parit, in the given situation, declare your position to your bank on your own. Keeping your repayment schedule in mind, bank may consider your application even with a low score.

    Thanks

    Ashal

  3. parit says:

    Thanks for a prompt reply Ashal . The problem is while applying for credit cards i never thought i would be going for home loan . I was also ignorant about cibil scoring criterion .I have made down payment on my home now and postponing now is not an option . I was confident about my creditworthiness as i had never defaulted . I am desperately looking for help .

  4. ashalanshu says:

    Dear Parit, please postpone your home purchase. As of now focus solely on increasing your score by sensible use of cards. Please do not apply for any credit line in between. Wait for next 9-12 months and check your score at that time.

    Thanks

    Ashal

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