{"id":6526,"date":"2023-03-29T12:42:36","date_gmt":"2023-03-29T07:12:36","guid":{"rendered":"https:\/\/www.aurobindorealty.com\/?p=6526"},"modified":"2026-11-05T14:06:02","modified_gmt":"2026-11-05T14:06:02","slug":"ways-to-improve-your-credit-score-to-get-a-favourable-home-loan","status":"publish","type":"post","link":"https:\/\/aurorealty.com\/blog\/ways-to-improve-your-credit-score-to-get-a-favourable-home-loan\/","title":{"rendered":"How to Improve Your Credit Score for a Home Loan"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<label class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/label>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/aurorealty.com\/blog\/ways-to-improve-your-credit-score-to-get-a-favourable-home-loan\/#Regularly_Check_Your_Credit_Report\" >Regularly Check Your Credit Report<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/aurorealty.com\/blog\/ways-to-improve-your-credit-score-to-get-a-favourable-home-loan\/#Pay_on_Time\" >Pay on Time<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/aurorealty.com\/blog\/ways-to-improve-your-credit-score-to-get-a-favourable-home-loan\/#Close_Inactive_Accounts\" >Close Inactive Accounts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/aurorealty.com\/blog\/ways-to-improve-your-credit-score-to-get-a-favourable-home-loan\/#Keep_a_Healthy_Mix\" >Keep a Healthy Mix<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/aurorealty.com\/blog\/ways-to-improve-your-credit-score-to-get-a-favourable-home-loan\/#Get_Credit_Only_When_You_Need\" >Get Credit Only When You Need<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/aurorealty.com\/blog\/ways-to-improve-your-credit-score-to-get-a-favourable-home-loan\/#Avoid_Taking_Too_Much_Debt\" >Avoid Taking Too Much Debt<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/aurorealty.com\/blog\/ways-to-improve-your-credit-score-to-get-a-favourable-home-loan\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><\/li><\/ul><\/nav><\/div>\n<div id=\"bsf_rt_marker\"><\/div><p>Your credit score sets the floor and the ceiling on your home loan, how much a lender will offer, what interest rate they will quote, and how much paperwork you will face. In India, scores are issued by CIBIL, Experian, Equifax, and CRIF High Mark, and lenders set their own cut-offs, and the best rates usually go to applicants with higher scores. Ask your bank what it asks for before you apply. A lower score narrows your options: a lender may decline the application or offer a higher rate.<\/p>\n\n<p>The good news: a credit score is not fixed. Most of the levers that move it are within your control, and a focused 6 to 12 month effort is usually enough to shift a marginal borrower into a strong one. Here are the moves that actually work, in the order they pay off.<\/p>\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Regularly_Check_Your_Credit_Report\"><\/span><strong>Regularly Check Your Credit Report<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n<p>Pull your full report from CIBIL or any of the four bureaus at least once a year, you can ask for one free full credit report every calendar year from each credit bureau. Do not just look at the score; read the account-level data. Errors are common: closed loans still showing as active, settled accounts marked as written-off, duplicate enquiries, or someone else&#8217;s accounts attached to your PAN. Each of these can pull your score down and can be fixed with a dispute raised through the bureau&#8217;s portal.<\/p>\n\n<p>Checking your own report is a soft enquiry and does not affect your score, so make this a quarterly habit if you are 6 to 12 months out from applying for a home loan.<\/p>\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pay_on_Time\"><\/span><strong>Pay on Time<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n<p>Payment history is the most important input into your score. One missed EMI or credit card payment beyond 30 days past due can knock a healthy score down sharply, and the late payment stays on your report. Auto-debits or standing instructions for credit cards and EMIs are the simplest fix; treat them as non-negotiable household plumbing.<\/p>\n\n<p>If you are already behind, bring everything current first. Negotiate with lenders for a &#8220;no-cost&#8221; closure rather than a &#8220;settled&#8221; tag, settled accounts hurt your score for years.<\/p>\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Close_Inactive_Accounts\"><\/span><strong>Close Inactive Accounts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n<p>This one is misunderstood. Old, well-managed credit cards actually help your score because they lengthen your credit history. What you should close are accounts you no longer use that carry annual fees, dormant store cards, or any card with a long-forgotten outstanding balance. Closing genuinely inactive accounts also reduces fraud risk, forgotten cards are a soft target.<\/p>\n\n<p>Before closing anything, check the impact on your overall credit utilisation ratio. If your inactive card has a high limit, closing it can spike your utilisation overnight and pull the score down.<\/p>\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Keep_a_Healthy_Mix\"><\/span><strong>Keep a Healthy Mix<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n<p>Lenders want to see you can handle different types of credit responsibly, a mix of secured (auto loan, home loan, gold loan) and unsecured (credit card, personal loan). A profile built only on credit cards looks thinner than one with a paid-off car loan and a card or two managed cleanly.<\/p>\n\n<p>This does not mean opening loans for the sake of mix. It means that if you took an auto loan three years ago and ran it cleanly, that history is working for your home loan application now.<\/p>\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Get_Credit_Only_When_You_Need\"><\/span><strong>Get Credit Only When You Need<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n<p>Every formal credit application creates a hard enquiry, and each one can lower your score a little for a while. Cluster too many in a 90-day window and lenders read it as credit-hungry behaviour. Stop applying for new cards or personal loans for at least 6 months before your home loan application. If you are rate-shopping for the home loan itself, check eligibility and indicative rates first and apply formally only to the lenders you are serious about.<\/p>\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Avoid_Taking_Too_Much_Debt\"><\/span><strong>Avoid Taking Too Much Debt<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n<p>Two ratios matter here. Credit utilisation, the percentage of your card limits you are using, should stay under 30 percent on each card, not just in aggregate. And your overall fixed obligation to income ratio (FOIR), which lenders use to size your home loan, should stay comfortably within the limit your lender sets. If you are already running multiple personal loans or maxed-out cards, lenders will either reduce your eligible loan amount or decline outright.<\/p>\n\n<p>Before you formally apply, run your numbers through an <a href=\"https:\/\/aurorealty.com\/blog\/5-ways-to-reduce-your-home-loan-interest-rate\/\">EMI calculator<\/a> to confirm the monthly outgo fits inside that 40 to 50 percent ceiling at the rate you are likely to be quoted. If you are evaluating Hyderabad as a market, our take on <a href=\"https:\/\/aurorealty.com\/blog\/5-reasons-behind-the-growth-of-hyderabad-real-estate\/\">why Hyderabad real estate is growing<\/a> and <a href=\"https:\/\/aurorealty.com\/blog\/gachibowli-a-fast-developing-area-to-buy-property\/\">where buyer demand is concentrating<\/a> can help you size the loan to the right asset.<\/p>\n\n\n<p class=\"wp-block-paragraph\">See also: <a href=\"https:\/\/aurorealty.com\/blog\/how-to-buy-first-apartment-hyderabad-step-by-step-guide-2026\/\">How to Buy Your First Apartment in Hyderabad<\/a>.<\/p>\n\n\n<p>Ready to start your search? Read the <a href=\"https:\/\/aurorealty.com\/blog\/property-registration-process-in-telangana-a-guide\/\">Telangana property registration process<\/a> and <a href=\"https:\/\/aurorealty.com\/blog\/rera-approved-projects-in-hyderabad-how-to-verify-before-you-invest\/\">how to verify RERA approval<\/a>, then <a href=\"https:\/\/aurorealty.com\/residential-projects\">view Auro Realty\u2019s residential projects<\/a>.<\/p>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><strong>Frequently Asked Questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-6526-0\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">What is a good credit score for a home loan in India?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>750 and above gives you access to the best rates from most banks and HFCs. 700 to 749 will get you approved at standard rates. 650 to 699 typically means a higher rate or a lower sanction. Below 650, expect rejection or NBFC pricing.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-6526-1\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">How long does it take to improve a credit score?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A 30 to 50 point lift from cleaning up utilisation and paying on time can show up in 3 to 6 months. Recovering from a major default or settlement realistically takes 18 to 24 months of clean behaviour.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-6526-2\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">Does checking your own credit score lower it?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>No. Self-checks through the bureaus or licensed aggregators are soft enquiries and have zero impact on your score. Only formal lender pulls (hard enquiries) cause a temporary dip.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Your credit score sets the floor and the ceiling on your home loan, how much a lender will offer, what interest rate they will quote, and how much paperwork you will face. In India, scores are issued by CIBIL, Experian, Equifax, and CRIF High Mark, and lenders set their own cut-offs, and the best rates [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6835,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41],"tags":[],"class_list":["post-6526","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment"],"_links":{"self":[{"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/posts\/6526","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/comments?post=6526"}],"version-history":[{"count":18,"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/posts\/6526\/revisions"}],"predecessor-version":[{"id":16045,"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/posts\/6526\/revisions\/16045"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/media\/6835"}],"wp:attachment":[{"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/media?parent=6526"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/categories?post=6526"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aurorealty.com\/blog\/wp-json\/wp\/v2\/tags?post=6526"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}