You must have a good credit score for your home loan or any other kind of loan. Even though you can take a home loan with a low credit score, you may get less than the amount you need with a higher interest rate. As a result, it is imperative that you not only check CIBIL score by PAN card but also make sure that you improve your credit score. You can do so in multiple ways; some are easy and convenient.
Improving Your Credit Score
- Limit your credit use
If you want to maintain your good credit score or improve it, you must spend as little of your credit limit as possible. Also, you must pay off your loan in time or in advance as much as you can. And if you have a high credit utilisation ratio, you can choose a higher credit limit from beforehand, which assists with raising your CIBIL score soon.
- Timely payback of credit card dues
The easiest way of improving your credit score is to pay all your outstanding bills on time on your credit card. Also, you can escape any late payment charges if you pay the due credit amount whenever the payment cycle comes. Also, once you start paying on time, you can periodically check CIBIL score by PAN card to see the timely improvements.
- New credit card
When you are applying for your home loan, it helps to have your credit card. But if you have a high number of credit cards and you make many high purchases, it reduces your credit score. As a result, when you apply for a credit card, ascertain whether you are eligible for it or not, and you can apply for the card in such a bank where if you had to apply for another loan in the future, you might get the loan easily.
- Increasing credit limit
In boosting your credit score, your credit utilisation ratio plays a significant role. If you have a high credit utilisation ratio, then you could attempt to increase your credit limit. It will, in turn, boost your credit score.
If you spend over your credit limit, you are recognised as a borrower with high risk. Since you are using the full limit of your credit card, your credit utilisation ratio increases considerably. Thus, it boosts the default risk. As a result, before you spend a lot, it would be wise to boost your credit limit.
- Maintain old report
It is necessary to check CIBIL score by PAN card since your score reflects your previous credit behaviour, based on which the bank could approve your application for the loan. As a result, keeping a record of your loan account in your report will display your positive creditworthiness. It would further help towards making a good impact on your loan application.
- Track your credit report
Your credit report conveys your CIBIL score, but it is also advised to keep track of your credit report to ensure no errors and inconsistencies. However, since you only check your credit report once a year for free from the official website of CIBIL, if you need to check your credit score again, you can use the CIBIL score app.
No matter which way you take to improve your credit score, it is necessary that you have a high score before applying for a home loan. A high credit score would ensure you receive the amount you need and a good interest rate. And in your journey to improve your credit score, you need to track it several times. You can do so by checking CIBIL score by PAN card or any other means possible.