Buying a home can be one of the largest financial decisions in a lifetime. Whether it’s your first studio apartment, a luxury penthouse, or a home to rent as an investment, you’re likely going to need a home loan.
That’s where your credit comes in. A credit score is just a three-digit number but when it comes to buying property, it can make all the difference in the world! So let’s start by explaining what steps you can take to improve your credit score and why it matters.
What Exactly Is a Credit Score?
You can think of your credit score like a report card for your handling of money. It is a number (between 300–900 in India) that showcases to lenders and banks how reliable you are with your finances.
The higher the score, the more willingness lenders would have to lend to you. A score of 750 and above is considered good in most cases, and will unfold more options to lending.
Why Your Credit Score Matters When Buying Property
1. Loan Process is Easier
banks will check your credit score before they say ‘yes’ to your home loan application. Higher score = higher probability of getting approved.
2. Lower Interest Rates
Higher credit scores are associated with less risk to lenders. This means a lender will be more likely to provide you a lower interest rate. Over the years of EMIs this could save tens of thousands to lakhs of rupees.
3. Higher Loan Amount
Interested in that bigger 3 or 4 BHK? If you have a good credit history you may qualify for a higher loan amount as well as more flexibility on terms and conditions.
4. Less Stressful Journey
If you have a good score, the loan process is quicker and smoother. If you have a good score you can spend your time focusing on the property vs checking whether all the paper work is complete.
How to Improve Your Credit Score (Simple, Practical Tips)
Improving your credit score is not rocket science. It simply takes consistency and some financial discipline:
- Pay on time, every time — never miss an EMI or credit card bill. Even one late payment can affect your score.
- Keep credit card usage low — avoid going over 30% of your card limit.
- Don’t apply for too many loans/revolving credit accounts at once — multiple applications can make you look “credit hungry.”
- Check your report regularly — find and fix errors.
- Maintain old accounts — an extended credit history should work in your favor.
- Pay off high-interest debts first — this will help relieve you of excessive financial burden.
Following these habits, and in a few months, you will notice improvements.
Real Example: Buying with Roongta Developers
Let’s discuss the prospect of purchasing a home at Estella by Roongta Developers in Vesu, Surat, a project that promises spacious 4 & 5 BHK homes, superior amenities, and the very best location.
With a high credit score:
- Your loan gets approved in a timely manner.
- Your EMI will be less because of better interest rates.
- Overall, things run smoothly, which allows you to enjoy moving into your dream home.
With a low credit score:
- Your loan could be delayed or rejected.
- You may have to pay much higher interest rates.
- Having to worry about finances might distract from the joy of buying.
Quick 5-Step Action Plan to Boost Your Credit Score
- Pay all EMIs and bills on time.
- Keep your credit card balance under 30%.
- Check your credit report every few months.
- Avoid needless loan applications.
- Build up a long clean credit history.
Final Thoughts
Your credit score determines everything you’d ever want when purchasing a property: good loan rates, low EMIs, and an impeccably easy time to find a home. If you plan on purchasing a property, you must get your credit score in the best position before you even think about settling on a location and floor plan.
At Roongta Developers we’re making home buying simple, transparent, and rewarding. Our projects embody quality, sustainability, and modern living, which means when you purchase from us, you’re not just buying a home, but a lifestyle.
Ready for your quest of finding your dream home in Surat?
Explore Roongta Developers’ projects today, and let us help you with your property purchase journey.
Visit Roongta Developers and start the journey of your property purchasing dream today
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