Your Guide To Improving Your Credit Score
A credit score comprises your credit reports that help banks and financial institutions understand your creditworthiness.
The past few years have observed a drastic increase in the number of people opting for home loans. According to the Reserve Bank of India, outstanding home loans at banks grew by 7.6% between FY 20 and FY 21. While applying for a home loan, one of the key parameters that are verified relate to your credit score. This score is crucial as it helps banks decide the approval of your home loan application.
A credit score comprises your credit reports that help banks and financial institutions understand your creditworthiness. This is based on your repayment habits over a period of time. The bureaus collect data from its members, including individual consumers and lending institutions to provide information about your credit history and creditworthiness.
A credit score between 750 and 900 is considered as very good. The higher your score, the more likely you are to get your home loan application approved.
A higher credit score can also help you avail of benefits such as higher loan amounts, lower interest rates, and longer repayment tenure. If your credit score is below 675, it is recommended to improve your credit score before applying for a home loan.
Tips to Improve Your Credit Score
Here are some effective tips that you can follow to improve your credit score:
1. Frequently Check Your Credit Report
The first step is to get your credit report and evaluate it for errors and mistakes. Even if you have been paying on time, there can be scope for error which can affect your score negatively. You must ensure that you have been paying your credit bills on time for at least 5-6 months before you apply for a home loan. According to the data collected by CIBIL, 79% of people who have a CIBIL score of 750 and above get their home loans approved easily.
2. Pay Your Credit Card Bills on Time
Before applying for a home loan, make sure that you have been paying your credit card bills on time for the past six months. If you are consistently late in paying your credit card dues or are maxing out your credit limit, your credit score can be negatively affected. In addition, you can begin to follow the “30% rule”. This rule states that you should use only 30% of the credit limit allocated on your credit card. This can help increase your credit score significantly.
3. Be Timely With Your EMIs
To have a good credit score, make sure that you pay your EMIs on loans and mortgages regularly. Running late on these payments can affect your credit score. Banks and lending institutions will look into your credit score to understand your potential repayment patterns. If you have significant debt from other loans, you can consider alternatives such as restructuring your loan. This can help you pay your EMIs on time.
4. Avoid New Loans
A home loan can help you buy your dream home. However, with a new home comes additional cost. You may want to decorate your home with furniture and other accessories. Avoid availing of another loan to meet these needs. Make sure that you avoid taking any further loans until your home loan has been approved.
5. Track Your Co-Applicants’ Payments
If you are applying for a loan with a co-applicant, ensure that you keep track of their payment as well as their credit history. This can help you maintain your credit score.
Don’t worry if you are planning to apply for a home loan and have a low credit score. All you need to do is identify your current credit score and adopt a few financially healthy habits to improve your credit score. Repay your dues on time to ensure your credit score improves exponentially.
- Aadhar Housing Finance has been awarded and recognised as ‘The Best Brand 2021’ at the 4th Edition of ‘The Economic Times – Best Brands 2021’ held at Sahara Star in Mumbai on 21st December, 2021.
- Aadhar Housing Finance was conferred with the 'CSR Times Award 2021' for the successful initiatives implemented under its CSR project, ‘Aayushmaan Aadhar’ at the 8th National CSR E-Summit, on 17th December, 2021.
- Aadhar Housing Finance was conferred with 'India CSR Leadership Award 2021' on 10th Dec, 2021 in 'Community Health' category for its impactful community-centric initiatives conducted under Aayushman Aadhar project.
- Aadhar Housing Finance has received ‘Maharashtra State Best Employer Brand Award, 2021’ at the 16th Employer Branding Awards hosted on 23rd Nov, 2021 by World HRD Congress for our exemplary work in HR. Aadhar has translated and combined vision with action leading to better people strategies and cultivation of competencies in order to enable the organization to be future ready.
- Aadhar Housing Finance Ltd bagged 5 awards across below categories at ‘Banking Frontiers NBFC Awards & Conference 2021’ (DNA Awards 2021) virtual summit held on 20th Aug, 2021. 1) Best Cyber Security Initiative - 1st Prize 2) Best API Initiative - 1st Prize 3) Best Omnichannel CX Initiative - 2nd Prize 4) Best Cloud Initiative - 2nd Prize 5) Esteemed Trophy (IT & Digital Group)
- Awards & Recognition: We received two prestigious awards at the 7th Edition of ‘National Awards For Excellence in BFSI 2021’ which was held virtually on 26th Aug 2021, in mentioned categories: 1) Aadhar Housing Finance Ltd received the ‘Affordable Housing Finance Company of the Year’ award, 2) Shri Deo Shankar Tripathi, MD & CEO, Aadhar Housing Finance Ltd has was conferred with ‘CEO of the Year’ award.
- Awards & Recognition: For the Second consecutive year, Aadhar Housing Finance has been certified as a ‘Great Place To Work’ by Great Place To Work Institute, a Global authority on recognizing high-trust and performance driven culture at workplaces.
- Awards & Recognition: Aadhar Housing Finance is certified as a ‘Great Place To Work’ by Great Place To Work Institute (India). This is a significant milestone for Team Aadhar as ‘The Great Place to Work Model’ is the world’s most researched, accepted and sustainable definition of a great workplace from an employee’s point of view. It is a comprehensive framework encompassing the overall employee experience ecosystem.
- Awards & Recognition: Aadhar Housing Finance won for the 3rd year in a row at The Outlook Money Awards. Team Aadhar received the Silver award in the Affordable Housing category at the Outlook Money Conclave held in Mumbai on 27th Feb, 2020.
- Awards & Recognition: Shri Deo Shankar Tripathi, MD & CEO, Aadhar Housing Finance received the ‘Top Most Influential BFSI Leaders’ award at the World BFSI Congress & Awards, in Mumbai on 14th Feb 2020.
- Awards & Recognition: Shri Deo Shankar Tripathi, MD & CEO, Aadhar Housing Finance received ‘the NBFC Leadership Award 2020’ at the 8th NBFC 100 Tech Summit held in Mumbai by Banking & Finance Post and Elets on 23rd January 2020.
- Awards & Recognition: The Aadhar Annual Report 2018-19 wins all India 3rd Prize in the PRSI National Awards 2019 at the 41st All India Public Relations Conference – Hyderabad
- Awards & Recognition: Aadhar Housing Finance is one of the ‘Best BFSI Brands 2019’: Aadhar Housing Finance received ‘The Economic Times Best BFSI Brands 2019’ award at the India-UAE Strategic Conclave 2019 held in Dubai on 15th October, 2019
- Awards & Recognition: Aadhar Housing Finance received ‘The affordable Home Loan Provider Of The Year 2018’ award from Union Minister Shri Nitin Gadkari at Outlook Money Conclave in Mumbai on 12th March, 2019 for the exemplary work in supporting the ‘Housing for All’ mission in India.
- Aadhar Housing Finance received the Prestigious ‘PMAY Empowering India Award 2019’ from Union Minister Shri Hardeep Singh Puri in Delhi on 5th March, 2019 for its exemplary work in supporting the ‘Housing for All’ mission in India.
- Dun & Bradstreet included Aadhar Housing Finance in 'India's Leading BFSI Companies 2019' list. The report was published by Dun & Bradstreet Information Services in March, 2019.
- Aadhar is declared one of the 1) ‘DREAM COMPANIES TO WORK FOR’ (Financial Services) and 2) ‘DREAM EMPLOYER OF THE YEAR’ presented by ET Now on 16th Feb, 2019 at the World HRD Congress in Mumbai.
- Shri Deo Shankar Tripathi, MD & CEO, Aadhar Housing Finance was recognized and felicitated as one of ‘100 Top Most Influential BFSI Leaders’ at the ‘World BFSI Congress’ held in Mumbai on 14th Feb, 2019.
- Aadhar Housing Finance bagged the ‘Most Promising Brand For Housing Finance’ award at the ‘World BFSI Congress’ presented by ET Now in Mumbai on 14th Feb, 2019.
- Aadhar Housing Finance won ‘Prestigious Brands of India 2019’ award at the conference held at Sahara Hotel in Mumbai on 12th Feb, 2019. The list of prestigious brands was judged and presented by BARC (Brand Advertising Research and Consulting), a global brand consultancy firm and ERTC Media, one of India’s leading independent media consulting & brand listing organisations. The recognition solidifies Aadhar as a leader within housing finance segment across various parameters such as brand recall, impact, trust, positioning, growth, reach, and innovation.
- Aadhar Housing Finance won the prestigious Finnoviti 2019 award at ‘Finnoviti Awards & Conference’ presented by Banking Frontiers and their Knowledge Partner Deloitte in Mumbai on 25th January, 2019 for innovative distribution and referral model named ‘Aadhar Mitra’.
- Aadhar Housing Finance bagged 2 prestigious awards at the ‘Banking, Financial Services & Insurance Awards’ presented by ABP News in Mumbai on 28th November, 2018:
- Housing Finance Company of the Year (Medium and Small) – for our exemplary work in the affordable housing finance segment.
- Marketing Campaign of the Year – for our recent brand campaign #GharBanegaTohDeshBanega.
- Aadhar MD & CEO awarded the ‘BFSI Leadership Award’ in Nov 2018 by ‘The Banking and Finance’ magazine and ‘elets’.
- Aadhar MD & CEO awarded the ‘Certificate of Excellence’ under “30 most innovative Business Leaders to watch in 2018” in July 2018 by ‘The CEO Magazine’.
- Aadhar receives the Award as the “Best Affordable Home Loan Provider of the Year 2017” at the ‘Outlook Money Awards’ March 2018.
- Aadhar CEO receives the ‘Inclusive Business Leaders Award’ from International Finance Corporation (IFC) for Aadhar’s exemplary work in Inclusive Business at the 2012 Inclusive Business Leaders Forum in Tokyo, Japan.