How to Improve Credit Score Before You Buy Flats in Thrissur

Posted onJan 23, 2025

real estate investment strategies in Thrissur, 

Investing in flats in Thrissur is a smart move; It is a great place to settle with family, thanks to its natural beauty, and plethora of opportunities that are coming up because of the IT boom. It is known for its rich cultural heritage and thriving gold and finance industries. If you are moving to Thrissur, purchasing a house will be one of the foremost things on your mind.

Are you wondering how you will finance your flat? It is, after all, one of the most important factors to consider while investing in real estate in Thrissur. Here are some ways you can arrange for funds:

• Set your budget and search for an affordable house
• Plan early and save as much as possible
• Borrow money from parents, close friends and relatives
• Apply for a housing loan
• Make your spouse your co-borrower

It is important to choose your lender carefully, as there are a large number of banks and financial institutions that offer housing loans today. Compare the following:

• Reviews from previous customers
• Downpayment required
• Rate of interest offered
• Processing fees
• Prepayment charges
• Tenure offered
• Repayment options

Make your final decision once you have this information from at least 4-5 lenders. There is one thing you need to keep in mind, though: it is important that you have a good credit score to get favourable terms for your housing loan.

What is a Credit Score?

It is a score that tells lenders how trustworthy you are. It is a three-digit number which is arrived at after considering your credit history, repayment history, how much credit card limit you have what you’ve used, and so on. Obviously, the higher your credit score, the better, and the more inclined lenders will be to give you the loan. CIBIL, Experian, Equifax, etc. are the major agencies which provide your credit score. 

You should have a score of at least 725, to be given a loan. There could be lenders who may still give you a loan, but as you will be considered a risky borrower, you may have to pay a higher rate of interest. 

How Can You Improve Your Credit Score?

Timely Repayment

Never miss a monthly payment or credit card payment; ensure that you pay them on time, and on the correct date. Make sure you have sufficient balance in your account on the due day and don’t default on any payment.

Limit Credit Card Use

The percentage of credit limit you have utilized plays a huge role in deciding your credit score. It is fine if you pay off the entire amount on the due date, but if you have utilized say over 70% of the limit and are delaying paying the full amount, it will negatively impact your credit score. You can also make small payments as and when you can towards the credit card so that the utilization doesn’t show a high percentage at the end of the billing cycle. Also, remember that it is better to have a few cards with high credit limits so that your percentage used does not come high.

Try to Pay Credit Cards in Full

While it is enough to pay the minimum amount, it is always better to pay off the entire bill; when you pay the minimum amount, you have to pay an exorbitant amount on the outstanding, and it also impacts your credit score - though not as much as defaulting on the payment.

Limit the Number of Loans

When you have several loans in your name and are making multiple EMI payments, it can reflect poorly on your credit standing. Try to close off one loan before you apply for the next. Try to have just a couple of other loans, if at all, before you apply for a housing loan. The fewer the loans you have, the better your credit score will be.

Conclusion

A high credit score can get you favourable housing loans, so that you can buy the house of your dreams, like a Varma Homes apartment. RERA approved, and featuring top-notch amenities, our 2 and 3-BHK flats can give you and your family an elevated living experience.

Step up to unparalleled luxury with Varma Homes. Explore our distinctive Apartments in Thrissur and find where elegance meets comfort. Secure your future home with us today and indulge in a lifestyle designed for discerning individuals who seek exclusivity and convenience in one of Kerala's most vibrant cities. Experience the blend of modern amenities and serene living environments that only Varma Homes can offer. Connect with us to learn more about our limited availability and special offerings. Your new luxurious life awaits!

FAQ’s

What is a credit score and why is it important when buying a flat in Thrissur?

A credit score is a three-digit number that lenders use to evaluate your creditworthiness. It is derived from your credit history, repayment habits, credit card usage, and other financial behaviours. A higher credit score indicates reliability and may result in better terms on housing loans. This is crucial when investing in properties like the apartments in Thrissur, where a good credit score can secure favourable loan terms, helping you afford a desirable location and better amenities.

How can I improve my credit score before applying for a housing loan in Thrissur?

To improve your credit score, ensure timely repayment of all dues, maintain low credit card utilization (ideally below 30% of your limit), and avoid applying for multiple loans at once. Consistently paying credit card bills in full rather than just the minimum amount also positively affects your score. These steps can enhance your creditworthiness, making you a more attractive candidate for housing loans.

What should I look for when choosing a lender for buying an apartment in Thrissur? When selecting a lender for purchasing an apartment in Thrissur, compare at least 4-5 options considering factors such as customer reviews, required downpayment, interest rates, processing fees, prepayment charges, loan tenure, and repayment options. Choosing the right lender is as crucial as improving your credit score, as it directly affects the financial terms under which you will purchase your home.