Credit score is checked for home loan .
A good credit score can lead to lower interest rates for lenders. Credit vintage and scores are raised by timely and timely repayment of these loans.
Highlights:
- Lenders check the repayment capacity of the borrower before making a loan.
- In this, lending banks, financial institutions look at the credit score of the customer.
- Credit scores range from 300 to 900.
Mumbai: Credit score is a three digit number. This number indicates the likelihood of the customer being accepted for the loan. Lenders check the repayment capacity of the borrower before making a loan. To do this the borrower looks at the credit score. This credit score is given by credit bureaus like Experian. Credit scores range from 300 to 900. 900 is the highest credit score.
The higher the credit score, the more likely it is that the loan will be approved by the lender. Neeraj Dhawan, Managing Director, Experian India, said: He said a good credit score could lead to lower interest rates from lenders. Credit vintage and scores are raised by timely and timely repayment of these loans. So they are able to take loans for big needs and big amounts. Similarly, if the credit score is high, large banks and financial institutions will be able to access their loans.
Your credit score is calculated based on factors such as repayment background, credit usage, credit duration, type of credit, total credit accounts, etc. It is advisable to check your credit score before applying for a loan. You can check the free credit score on Xperia’s website.
Here are five key pointers in moving forward with a good credit score:
If the credit score is more than 750 then you can get a home loan from a favorable plan. This will allow you to apply for a loan through all the best banks. Lenders will evaluate your creditworthiness. A bad credit / repayment background will lower the score and the borrower will not be eligible for a good home loan plan.
Eligible for loan: A credit score of 750 or higher is considered a good credit score. Customers with higher credit scores are more likely to be offered loans at special interest rates. As a result, as soon as you qualify for a loan, you are likely to be offered a discounted interest rate and you will also get a discount on processing fees.
Low interest rates: A good credit score helps you to get a loan at a lower interest rate
More help with loan repayment: The better your credit score, the higher the loan amount you get and the longer the repayment period.
Early Approval: Approval of an application with a high credit score makes it easier for the lender to process the application. This is because the reliability of the refund has already been verified.
Concessions on loan processing fees and other charges: When the borrower is interested in giving a loan on the basis of good credit score, the applicant’s burden is heavy and he can ask for a discount on loan processing fees and other charges.
Courtesy : Maharastra Times