How to Improve Credit Score Before You Buy Flats in Trivandrum

Posted onJan 17, 2025

So you’ve decided to purchase a flat in Trivandrum; Congratulations! It’s an excellent decision: as the capital city, Trivandrum has some of the best infrastructure you can get, like road, rail, and air connectivity, outstanding educational and health facilities, and a world-class IT township. The seaport facilitates international trade as well. It is an ideal city for a family to settle. 

However, there are a number of factors to consider when buying a flat in Trivandrum. Let’s see what they are:

• Deciding the type of property to buy
• Choosing the location of the apartment
• Finalizing the builder, and then the project in which to buy your flat
• Fixing a budget for the house
• Checking the amenities on offer

We can agree on the fact that the financial aspect is one of the most crucial things to consider when buying an apartment in Trivandrum for the majority of homeowners. Most people apply for housing loans when they finalize an apartment for purchase, as it is not possible to pay the entire amount upfront. While there are a number of banks and financial institutions that offer loans today, it is important to compare their terms like rate of interest, tenure offered, prepayment penalties if any, processing charges, and repayment options.

When you are forming real estate investment strategies in Trivandrum, you also need to be aware of your own credit score. 

What is a Credit Score?

A credit score is a three-digit number that indicates your creditworthiness and is calculated by independent credit agencies, on the basis of your credit history and repayment habits. The higher your credit score, the better terms you are likely to get when you apply for loans, and vice-versa. Usually, a score of 725 or above is considered good. Of course, the higher, the better. If it is lower, you need to work on it to increase it, or you may not get loan offers; even if you do get them, you may be charged a higher rate of interest and shorter tenure.

Tips to Improve Your Credit Score

Make your Payments on Time

If you have any ongoing loans and EMIs, make sure that you pay them on the correct date. If you have set up ECS, ensure that you have sufficient funds in your account so that you don’t default on any monthly payment.

Don’t Utilize your Entire Credit Card Limit

Never max out your cards - unless you can pay the amount in full soon. A high credit card usage tends to bring down your credit score. If you want to swipe your credit card to earn points, try to make small payments frequently to the card so that your utilization does not come up as high towards the end of the billing cycle. Try to get cards with high credit limits so that your credit utilization percentage stays low.

Pay the Credit Card Outstanding Amount in Full

When you pay only the minimum amount payable on the outstanding on your credit card, your credit score can take a hit. Ideally, you should pay the entire outstanding amount to boost your credit score. 

Try to Avoid Too Many Ongoing Loans

Having too many loans running concurrently can make your credit score take a hit. Avoid this, and wait for a couple of loans to close before you take another one. If you are thinking of purchasing a home on loan, make a conscientious effort to pay off smaller loans so that you can improve your credit score and then apply for a housing loan.

Check the Accuracy of Credit Reports

Sometimes the credit rating agency may make mistakes. Check their credit report and if you find any mistakes or anomalies that are bringing down your credit score, report it to them and get it rectified immediately.

Conclusion

Having a good credit score is useful not just when you apply for a housing loan but for any other type of loan, credit card, or buying appliances on EMI.

Varma Homes has excellent contacts with lenders and can put you in touch with a few of them should you require a loan for your flat purchase. Lenders are happy to provide home loans for builders with integrity and good reputations, like Varma Homes.

Are you searching for a blend of luxury and convenience in your next home? Look no further than Varma Homes in Trivandrum. Our meticulously designed Apartments in Trivandrum provide the perfect setting for those who appreciate fine living. Schedule a visit today and explore the possibilities that await in your dream home!

FAQ’s

What is a good credit score when applying for a home loan in Trivandrum?

A good credit score is generally considered to be 725 or above. The higher your score, the better the loan terms you are likely to receive, such as lower interest rates and more flexible repayment options. A higher credit score demonstrates to lenders that you are a lower-risk borrower.

How can I improve my credit score to secure better loan terms for a flat in Trivandrum?

To improve your credit score, ensure timely payments on all loans and credit cards, avoid using your full credit card limit, and pay the entire outstanding amount on credit cards rather than just the minimum. Additionally, try to minimize the number of concurrent loans you have, and always check your credit reports for accuracy to correct any errors promptly.

Why is it important to maintain a good credit score when buying a flat in Trivandrum? 

Maintaining a good credit score is crucial because it affects the terms of housing loans you can secure, such as the interest rate and loan tenure. A higher credit score can result in more favourable loan terms, reducing your overall borrowing costs. This is particularly important in a competitive real estate market like Trivandrum, where securing good financing can make a significant difference in your home-buying experience.