How to improve credit score

Credit score plays a vital role in the assessment of your home loan eligibility and is thoroughly looked into by the lending institutions. It is a score assigned by the Credit Bureau to individuals based on the information from their past credit history. If your credit score is low, the probability of the loan application being rejected becomes higher or the lender may charge higher rate of interest for the perceived risk.

Don’t fret!! You can improve the credit score by being conscious about the following: Make payments on time as late payments are frowned upon by lenders Keep your credit borrowings to a minimum. Take a loan only when you really need it Maintain a healthy mix of various loans If there are discrepancies in your credit record, communicate with the lender and get these corrected Don’t allow defaults on joint account payments and don’t guarantee someone who may default on his or her payments