Procedure that individuals who maintain a credit score of 750+ follow

There is no doubt that a high or good credit score can make a significant impact to your financial life. It can offer you the best interest rates on loans and get your credit card application approved. In some countries globally, even prospective employers and insurers go through a person’s credit report to determine their creditworthiness. You never know when bagging your dream job is the result of a good credit score!

So, does it mean that there will never be a loan for low CIBIL score? Well, not exactly, but such a loan does not come at the best terms. For instance, you can wind up paying a much higher rate of interest than you would if your score had been higher.

What is a credit score?

We know what a credit score does and how important it is, but let’s take a quick look at what constitutes the credit score, shall we? It is a numerical representation of your credit report, an all-important document generated by a credit bureau. There are currently four credit bureaus in India, each offering a report. A score ranges between 300 and 900, and a higher score is always a plus point.

Lenders consider a score of 750 and above a near-perfect score. This score essentially gives them the comfort of lending to a creditworthy individual and that’s what makes the score so important. How about calling for your free CIBIL report to know where you stand currently?

Factors that determine the credit score

Let’s take a diagrammatic look at the factors which determine the CIBIL score:

Keeping these factors in mind, your next step is to understand how to get a good credit score – and keep it that way.

How to get a good credit score

So, what is it that people who consistently have a high or good score of above 750 do regularly? Is it something drastically different? Here, we clue you in on their habits so that you too can work towards building and maintaining a similar credit score. Read on!

  • Payment history: It is crucial to make timely payments, so once your loan EMI or card statement is due, pay off the amount on or before the due date without fail. Remember that a delayed payment – or one that is skipped entirely – can pull down your score drastically. If you look at it from a lender’s perspective, they would not want to extend further credit to someone who doesn’t manage their existing debt well. So, set up payment reminders or avail of an ECS facility to maintain a clean repayment track record.

  • Manage your credit utilisation: While the credit utilisation limit is calculated across all your accounts and not just on a single credit card, remember that it is prudent to stay well within a utilisation ratio of 30 percent. A higher usage indicates that you could be in a spot or more of financial trouble and are heavily dependent on debt to manage your finances.

  • New credit: Every time you apply for fresh credit, a hard enquiry is made against your CIBIL report. While temporary – say for a few months – each such enquiry will drag your score down a little bit each time. So, ensure that you apply for a fresh line of credit – be it a loan or card – only if you absolutely need it. This also helps you stay away from unnecessarily walking into a debt trap.

  • Old accounts: Like the saying goes, old is gold! But, in this case, only if it is an account you’ve managed well, such as a credit card that has always had good payment history. Even if you don’t use this card at present, don’t close an old, good account. This can add weightage to your credit score.

  • Apply for a credit card: If you’re a first-time entrant to the financial world with no credit history whatsoever until now, this is the time to apply for a credit card. This can be your first step towards building a robust credit history. Do make sure that you pay on time and ideally in full, so that the card proves to be an asset over the long run, as far as your credit score is concerned.

  • Manage a healthy credit mix: When your score is calculated and also when a potential lender looks at this score, they’re happy to see a report that contains a well-balanced mix of all types of credit. This could include both secured and unsecured loans.

Your next steps

Now that you’re aware of what a high credit score can do for you, don’t forget to request for a free CIBIL report at the earliest. To take charge of your financial health it’s important to know just how your credit report fares. Remember that there will likely be a loan for low CIBIL score with some financer offering the option, but that is not the place you want to be.

Take charge of your financial health starting now!

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Do banks check the CIBIL score before loan approval? Here’s what you should know!

Your credit score is a huge determining factor when it comes to loan approval. It is one of the first things that a bank or financial institution checks when you approach them, making it an important aspect of your financial life that you just can’t afford to ignore. Of course, your complete profile will also be considered, but do take special care of your score.

A good starting point would be to get a free CIBIL score from the credit bureau so that you know where you stand. This is an especially crucial step prior to loan application. Read on to know more about the credit score, and how it impacts you.

What is a credit score?

A three-digit number between 300 and 900, the credit score is generated by a credit bureau. It is a crisp overview of your credit report, which tells a lender about your creditworthiness. A high or good credit score can open doors in the financial world for you, when it comes to making an application for a loan or credit card. While every lender’s criteria may differ slightly, there is no doubt that a score of 750 and above will make anyone sit up and take notice!

What goes into a credit score?

Wondering what are the parameters at play when it comes to your credit score? Read on to know more!

  • Payment history on past as well as current loans and credit card accounts

  • New credit that you have availed of

  • The length of credit history, i.e. how old your accounts are

  • A credit mix, which consists of various debt products

  • The credit utilisation ratio, which indicates just how much you seem to rely on credit

Other factors that banks consider

In addition to the credit score, banks also consider certain other factors such as your income and the amount you currently owe on existing loans and credit cards. They also look at the amount of loan you have requested for, together with the loan tenure. Whether your application is for a secured or unsecured loan will also have a role to play, especially keeping in mind your income and expenses.

However, here’s why the credit score is important. Say for instance you apply for a personal loan for low CIBIL score. Here, a bank may not reject your application outright because of the other factors being considered. However, a low score may not give a lender the confidence to offer you the best rate of interest since they too need to hedge their bets.

How to improve your credit score

Given the above, you’d agree that it is indeed important to make sure that your credit score is not just high but that it remains that way as well. Here are some crucial tips that should help you on your journey to improve your credit score.

  • Making payments in time: Being late on your credit card and loan payments can pull your score down. The situation is further complicated if you skip making the payment entirely, as this looks alarming from a lender’s perspective.

  • Do not default on loans: Charged off or settled loan and card accounts reflect negatively on your credit report, as do accounts that have gone into collections. Do make sure that you work out a solution to repay existing debt if you don’t want your score to dip drastically as a result of these charges.

  • Maintain old credit cards: Don’t shorten the length of your credit history if you have a good, old card account. If you have maintained it well by ensuring timely payments, this can in fact give your score a boost.

  • Applying for fresh credit: It’s simple, really – if you don’t need a loan or card, don’t apply for one! Not only does it make you look like you’re constantly in need of credit within a short interval, but every such application results in a hard enquiry on your credit report. This impacts the score, albeit temporarily.

  • Apply for a credit card: The above doesn’t hold true if you want to start building a credit score, however! Apply for a new card and be sure to use it prudently – this can instantly help boost your credit score.

  • Check your credit report: At regular intervals, do make sure that you check what’s in your report, because any erroneous or inaccurate information can prove detrimental to your score. Further, you need to make sure that every account mentioned therein belongs to you – protect yourself from identity theft even as you protect your credit score!

In conclusion

It’s important to remember that while a personal loan for low CIBIL score is not impossible, it is also not optimal at the same time. Instead, with some perseverance and patience it is better to improve your credit score.

Start with availing a free CIBIL score from a credit bureau today, so that you can take charge of your financial health confidently, now and well into the future!

Let’s find out interesting facts about credit score that you didn’t know

Credit score itself is an interesting topic. The whole logic, algorithm, how is it calculated, what factors are associated with it. All becomes one big score that is required to check the creditworthiness of an individual when he or she has applied for a loan or credit card to either the banks or the NBFCs (Non-banking Financial Institutions). For the basics, A Credit Score is a three digit number ranging between 300-900. Where 300 is the lowest and 900 is the highest. The score between 750-900 is a good score. Between 600-750 is considered as an average score and anything below 600 is bad.

There are four credit bureaus in India who gives credit scores. CIBIL (Credit Information Bureau India Limited), Experian, Equifax and CRIF Highmark are these four bureaus. These credit bureaus have the authority to access an individual’s credit history as they have the communication channel set with the banks and NBFCs (Non Banking Financial Institutions) who passes the information of when was the loan or a credit was applied to when it was approved to when it was disbursed and finally when they do they start repaying. Any missed or delayed payments, are all recorded and obviously which affect the score!

Payment History, Amount Owed, Credit Mix, Length Of Credit History and New Accounts are the five factors of which the credit score is made! We all know that. We have read many times about these criteria or the parameters and how they can make or break the score. The free CIBIL Score that is offered also helps anyone know the score and a detailed report wherein one can check the mishaps that must have happened if the score has gone low or anything related. But let’s know a few things beyond that. And what are other factors that one can take care too!

The first that comes is the credit utilization ratio:

What is the credit utilization ratio?

If you are a credit card user, you would know that there is a credit limit to the card which is assigned to you. Now, the credit limit given does not necessarily mean that use the whole of it. Practice shows that people who used a maximum 35% to 40% of their credit limit of the credit card, helped them keeping the score batter and on an average increasing the score. The logic is that it shows that the user is not credited hungry and is responsible enough to use some amount of the credit available. In such a case, if your utilization is high, try and get one more card and manage the balance or you can always clear the outstanding and revive the credit limit.

Secured Loans:

Secured loans or secured credits gives the financial institutes an idea that there always is a backup just in case if there is an emergency and you may just not be able to pay off the loan. A Car loan, Gold loan are some such small amount example of loans and secured credit card which is obtained against the FD that is kept to get that credit card are some of few hacks and tricks you can follow to get a better score.

Investing in something and from the interest received, pay the EMIs:

Now, this is one very interesting concept. Say you have X amount of money with you. If you are buying a home or a car or want to go for higher education or maybe send your kids for the education if you are that age, keep that amount as an investment. Take a loan for the work and manage in such a way that from the interest received from that investments, you can pay the EMI of a loan. In such manner, you can have the money safe, invested and with a new loan account, all the factors of the credit score are also covered helping you increase the score!

Follow these simple interesting hacks related to credit score which you probably didn’t know!

Finding a mistake on credit report can be frustrating. Learn How to deal?

The world runs on the basis of information. Information is everything, what makes an individual powerful is information. Similarly, you might be having lots of information about different topics in your life. Some may have information about a new web series to be released or someone might be having information about the latest vehicle which is going on sale next Friday. What makes an individual truly powerful is when the person holds information about finances and how to deal with it. The world revolves around finance and finance is really a vast topic to discuss.

One of the topics which is gaining traction is a credit score. A credit score is nothing but a financial representation of yours in from of your lenders. A good credit score can get you a financial product like a loan or a credit card in no time at all. All you need to do is pull up your free credit report and see how you are doing and keep up the good work. Many a times while checking your report, you see unusual transactions and are in doubt if the transactions are yours? Those transactions can be mistakes done from the credit bureau’s side and you can easily report it and get it fixed.

For a lot of us, we do not have time to check this report and after checking we do not have time to raise a dispute thinking it will be time consuming and frustrating.

Today, we will sight you some simple and easy steps while considering raising a dispute,

  1. Check your credit report from time to time

A lot of us make this mistake of checking our cibil report only when you are applying for a loan or a financial product. You should stop this practice and consider checking your report at least twice a year. You can pull up your report and check it for free and also this would not be considered as a hard inquiry as the report is requested by you.

2. Check and mark up errors on your report

The next thing you do is, if you find any error on your report highlight the same and raise a dispute towards that transaction at the bureau. You will have t make a proper report justifying why you think it is an error from the bureau’s side and attach all the possible transactional details to support your claim.

3. Raise different disputes

If there are multiple errors on the cibil report, raise different disputes for different errors. This way you will have multiple people working on your mandate and can expect your work to be done in an efficient and faster way.

4. Have patience

Once you have raised a dispute, you cannot expect things to happen on a fast pace. Credit bureaus take time to investigate each dispute and it takes a lot of time to reach the conclusion as there are many factors to consider towards the dispute.

5. Don’t take no as an answer

The credit bureaus with taking a lot of time can also come up with a conclusion which will state that the dispute is been barred and the transaction status remain the same. Do not give up; raise a dispute again if you think the judgment is not in your favor.

6. See if the error is been resolved

Even if you have won the dispute, you will have to recheck and monitor if the credit score has gone up after the dispute. It should not show a low cibil score after you have won the dispute.

Credit disputes can be frustrating and takes a lot of time of yours. What’s important here is that you get to raise your credit score and it can help you get a speedy loan when needed.

My credit score is 550. Will bank consider me for a loan against property?

We all make mistakes in life. Due to financial negligence, might be a possibility you have made a mistake too. Imagine, you have overspent your savings and have opted for different loans. At one particular time, you have all the possible loan account running and nowhere to go. You explain this to your friend and he suggests you to go for a loan against property and asks you to consolidate all your debts and pay it off at one go. You like the idea and start the process to opt for a loan against property and get through to a lender who you are comfortable taking a loan from. You submit your application with all the necessary documents attached and wait for a positive confirmation. In the initial process you get a call from the bank and you are informed that the loan plea is been rejected and the reason for the same is that you have a low cibil score of 550. You start wondering, what can you do and start doing some research on credit score and how to enhance it. You get know that the credit score won’t appreciate overnight and it’s a lengthy process.

First of all, you need to understand what is a credit score and what are its ranges and how will it impact the decision of lender on giving you a credit line.

What is a cibil score and what is a good range of it?

A credit score is a graphical representation of how you are doing financially. A good credit score can not only help you with a quick loan, but will also help in many ways you cannot imagine. There are factors which contribute to your score and you will have to maintain a good score if you want to get a credit line in future. The score ranges from 300 to 850, 850 being the magic number where everything comes to you automatically. Anything below 600 is considered to be poor and you will have to struggle a lot for getting things sorted as far as financial product go.

So, the main question here is will you get a loan against property if you happen to have a score of 550?

The answer to this is a yes! You will get a loan for sure but you will have to go through a lot of pain and hassles, do not worry we will provide you a checklist here,

Shop around

The very first thing you do is to do a thorough research on your report and then shop around for loans. Find a Non-banking financial corporation which will fund your loan against property and get your money credited in no time. You will be paying more interest rate as compared to market standards but it will solve your need of the hour.

Make your file strong

Even if you have a bad cibil score, you can still make your file strong by showing your employer reference, adding a co-borrower and so on. Just because this is one type of a secured loan where you will be keeping your property as collateral, there are chances that you will get a loan sanctioned with ease.

Start saving

After the storm is settled, make sure to start saving and try getting the loan closed. If you make the same mistakes which you’ve made in the past, the chances are you may lose your property to the bank and this can be very depressing.

Maintaining a good credit score is never an easy task, you will go through a lot when it comes to maintaining it. The good part is that you can always start fresh and start your building journey from where you left.

How to bring up your CIBIL score to 750 this Holi?

Credit Score. A tricky thing but not rocket science that one can’t understand. let’s understand the basics! A credit score is a three-digit number, ranging between 300-900. A score that is 750 or above is a good score, a score between 600-750 is average and anything below 600 is a bad or a low score.

Why is credit score important?

Almost when we are in the completion of the second decade of the 2000s, majorly the money rollings happen on loans or credits. One applied for a loan, or the credit they want and negotiate on the terms and get the money they want with the interest. Now, when this process works in association with a bank, or an NBFC (Non-Banking Financial Institution), they keep the record of the money landed, and when and how it was repaid! These are the info that goes to credit bureaus and with the algorithms, a credit score is generated. This score gives the idea about the creditworthiness of an individual and how responsible he/she is in handling the credit. And depending on that score, when applied for new credit, it is either approved or rejected. And that is why a credit score is important.

Which are the credit bureaus?

Ever wondered who gives the score or who calculated the score? The answer is the credit bureaus. There are four credit bureaus in India. CIBIL (Credit Information Bureau India Limited) established in 2000 and serving as the pioneer, Equifax, Experian, and CRIF Highmark which came eventually in existence. Since CIBIL was the first bureau, many people address credit score as CIBIL Score. These bureaus have an algorithm based on various parameters that check and gives the credit score.

What are the Parameters of credit score?

1. Payment History: How responsible one has been in handling credits (credit card bills and loan EMIs) and replaying them on time.

2. Amount Owed: How much credit has been taken to date.

3. Length Of Credit History: How Long had one been taking and managing the credit.

4. Credit Mix: A good mix of secured and unsecured credit along with a fixed and revolving type of credit.

5. New Credit: At a regular interval if new credit is applied.

These five parameters are given various percentage weightage by the credit bureaus and by that the score is established. As mentioned earlier, a score is one thing that can make or break the dreams looked for when it comes to applying for a loan and getting is approved! Better or higher the score more are the chances of getting the credit line approved! But, what to do if the score is low?

How to improve CIBIL score?

Let’s say, we have the fastest target of two months, say Holi. Now, considering the five parameters mentioned above, start working on each of them. Payment history, check your score and credit report. See if there are any missed payments, late payments or unclosed accounts. First and foremost work on that. Take a small loan if you have a cash crunch to clear the old debts. This will help in the second parameter. Length of old credits is to be taken care for. The oldest credit card, even if not in use, don’t discontinue. Pay the annual fees and keep it on. Take a loan which is a secured one, say gold or a car loan. Also, mix it with a personal loan. A credit card is also an option and hence a good mix of secured, unsecured and revolving loan with add up to the value. Since you are applying for new credit, this anyway will add to all of this!

Make sure that the credit card utilization ration does not exceeds 40% of your total limit. Do not apply for too many credits. As that may come across credit hungry behavior and will drag the score down!

Just these few moves and you will see the change in your score that will boost up your requirements! What are you waiting for? Start working on them from today!

Healthy CIBIL report helps to improve chances to get a loan.

In 2000, First ever credit bureau was established in association with a US credit bureau Transunion for Helping individual with their credit scores and credit reports. CIBIL Transunion established it’s marked by providing the scores to individuals who had taken loans and credits. CIBIL (Credit Information Bureau India Limited) was widely chosen by the banks and NBFCs(Non-Banking Financial Institutions) and helped it get the details of borrowers in order to get a better management system for credits. And also made it easy for a financial institution for the reference check in order to know the creditworthiness of an individual and eventually even companies.

CIBIL report then became an important aspect in each individual’s and even financial institution’s life. As stated above, it became easier for anyone to know past payment history, the amount owed, credit mix, length of credit histories and new credits they have applied for. And these are exactly the five parameters which make the score. Let us now understand the basic difference between CIBIL Score and CIBIL Report. CIBIL score is a three-digit number ranging between 300-900 where 900 is is considered as highest and 300 is to be the lowest. The creditworthiness is checked by the range of the score. Any score between 300-600 is considered lowest, any score between 600-750 is average and 750+ is highest. The score is this and the credit report has the detailed information of Individual. Starting for a score, personal details like Name, Address, Email, Mobile Number, PAN card, Aadhar Card etc. With that, it has detailed information about the credits that have been taken. From the time the credit account has been open, till it’s repayments and also when it was done and ending details. If any defaults, missed or delayed payments, are also mentioned in the report. Along with this, the last segment has details of all the credit inquiries that have been made till date. Credits here consists of credit cards and the loans both!

A Healthy report is the one which has the score 750+ as a start. All the personal information correct and verified. Major of the credit account with the status as closed and not settled of the one which is completed. The once which are open should have proper payment history i.e. no missed or delayed payments. Not too many new credit inquiries in a short span of time as that show a credit hungry behavior. Everyone should understand that nowadays all the financial institutions check the report and the score before sanctioning the loans or the credits or the credit card limits. If major of the above-mentioned criteria are fulfilled even the lenders are happily sanctioning the loan as that is like a low-risk profile for them. If suppose the score is low, or there are previous missed and delayed payments, too many of accounts settled, then that gives the impression to the lender as the borrower is not a responsible one and if the new credit or the loan is approved for him, that can straight away be a risky thing as he or she might repeat the same mistakes as done earlier and hence the credit may go on toss!

After knowing the fact of chances of getting a loan in an easier manner, know the fact that when the score is good and a report is healthy it is also added to the fact that the interest rates are lower. Suppose a person with 750+ score is planning to take a personal loan and a person with 650 score is planning to take a personal loan then there will be a minimum of 1%-2% difference in the Personal Loan Interest Rate. And sometimes even more. So be wise and always try to maintain your credit score and report healthy!

Why it is difficult to get a personal loan with no credit history?

No matter how rightly prepared you are financially, life will throw something on you which will take you to financial crises and you will be finding a lot of answers to get immediate cash to deal with the ongoing situation. The very first thing which you would do is to seek help from friends and family and ask for their help financially. If you are lucky and your friends and family are generous, you will get a quick loan from them in no time and you have the option to pay them off with ease without paying them any interest.

If you do not find any right option from them, you will have to apply for a loan as last resort and hope to get it sanctioned within a particular deadline. The best loan for such situations is personal loans. You find a lender online and think of applying for one going to their branch keeping with you all the documents needed to get the loan done. Once you have applied for the loan, you then wait for their positive revert and hope to get the money credited to your account. Unfortunately, you get a call from the lender stating your loan is been rejected because you do not have a credit history and why would that be because you are applying for a loan for the first time in life. Now you restart your research and find lenders who would provide you personal loan with no cibil score but you have no luck in it and you are finding it really hard to get a loan with the current credit status of yours.

What would you do in such a situation? Is it really that hard to get a personal loan with no credit history? Today we are here to solve that dilemma for you,

Is credit history that important?

Yes, the credit history is important if you are trying to avail a loan or a financial product. A credit score is a graphical representation of your financial decisions in front of your future lenders. The loan lender will always check how your payment patterns were just to make sure before they can provide you a loan. If you do not have a credit history it is really hard for the lender to figure out if they can sanction you a loan or not.

What are my options here?

As we all say, there always is a place where we can start. You can apply for a small secured loan which will have minimal documentation in place and it will get you a loan with ease. For example, you can apply for a consumer durable loan like buying a television or a mobile phone and you can get a loan sanctioned within minutes of applying. In this process the documentation is minimal and you have the option to go for the products interest free! This will not only help you build a credit score but will also help you get a personal loan in the future if in need. This will not only help you start the credit history, but will also help you build a positive one if the payments are done on time.

Is there a deadline?

This is a tricky one. It definitely takes time to build your credit score but at least you can start. Something is better than nothing is the principle you should stick to and again make all the payments on time to build a healthy credit score.

Starting a credit line and a credit score is always tricky and you will have to be really couscous when it comes to building it. You can do it with ease if you have financial integrity with you.

This is why you should track credit report to maintain a healthy record

Are you a health freak? Are you one of those who wake up at 5.30 in the morning and goes to work out on a daily basis? Have healthy food throughout the day and is rigorous about maintaining the perfect health? If yes, have you ever thought of your financial health? Isn’t that important as well? A healthy financial health will lead you to money miracles and if failed to adhere it can cause you a lots of problems.

What is the main essence of a good financial health you ask? It’s nothing but a good credit score. A credit score is a representation of your personality in eyes of a lender on how you are doing financially. There are ranges of credit score which will determine if you are credit worthy or not. You will pray to be on a higher of the score as it opens lots of doors to financial products to avail.

Here are some tips on tracking your credit report and maintain a healthy record,

Know your credit score

Many people make this mistake and never check their credit score on the first place. They only happen to know this term when they are applying for a loan or a financial product. Get your free cibil report and check what your score looks like. Is it bad, good, worse how much do you need to work on the same?

Keep a track

Your financial transactions are recorded frequently by your lenders to the credit bureaus. These transactions are like a summary of your financial well being and how your future lender will see you. It’s important to keep track to understand if the actions are helping you improve your cibil score.

Fix your details

Credit bureaus tend to make lots of mistake while entering your transactions towards your account. You need to check and report any errors you see when it comes to the transactions on your report. Not only transactions, but every details like your name, surname is to be rectified as this can lead to major problems like identity theft.

Only borrow what you need

When it comes to availing a loan or a credit card, always check your requirement. Do not avail more than you need as this will cause you a lot of damage financially. Just because people have pre-approved loans and open credit, they misuse their finances and then face lots of issues financially. If you think you happen to have a lot of open credit accounts than you need, try closing them with ease and try buiding a secured financial future.

Be smart when applying for a credit

When you are applying for a loan, it’s tempting to apply towards a few credit providers just to see how the market can favor you while applying for a loan. This practice can not only deny you a loan, but can also take a toll your credit score. When you apply for different loans or credit cards every enquiry is counted as hard enquiry and is recorded on your credit report. These enquiries stay on your report for a very long time and are visible to your future lenders that you made multiple applications to avail a loan in the past.

Do not miss on any payments

Life is tuff, we understand that and due to unconditional situations, you may miss on payments. Do not do that! It’s really important to make all your payments on time and maintain that financial integrity so that your credit score is maintained and you also don’t encounter any late fees and penalties.

Maintaining a healthy record sounds like a lot of work, but it can be a savior when it comes to availing a financial product. Few simple steps towards maintaining a good finance can help you in many ways you cannot imagine.

Smart investment tips to buy a Property

Planning is the key to everything we do in life. If you have a goal in life, be it short term or a long term, a proper plan can help you achieve it. Speaking about plans, we happen to have a lot of dreams which we would like to achieve someday or the other. Dreams like buying a high end car, an expensive phone, shopping for branded clothes, etc. These are dreams which you can fulfill with a small amount of planning and management and there you go! Dreams fulfilled! Is this the case with every purchase in our life?

Here we are talking about buying a home. Buying a house is a very lengthy process and takes a lot of your attention. For many of us, it’s a luxury we cannot afford. In some cases, by the time we reach to a decision to buy a house, the property becomes expensive or else the funds get exhausted. There is something or the other stopping you to make your dream purchase. For buying a property you need a proper plan which includes your budget, place of property, is there a co-borrower you can count on? Home loan options, you need to do a thorough research on which lender would be the best as it’s a long term commitment when it comes to home loans. HDFC Home loan gives you the best interest rates and less processing fees with speedy approvals.

After all the necessary research done by you, you decide on a property and start making the necessary arrangements to purchase the house. The very first thing in the home buying process is to make a huge down payment. You are prepared for it, but at last moment there are some additional charges and without digging a huge hole in your pocket you won’t be able to make the purchase. This leads to dropping the plan and again you are at ground zero.

It’s a total nightmare to see your dream property slipping out of your hands. Now you think you must have started making some smart investment for such a day. Thinking to start making smart investments, we will show you how,

Start early

Buying a house is almost everyone’s dream. Find you calling at the earliest and start saving for a good down payment for the house. On the other hand, if you apply for a loan at the early ages let’s say in your 20s and 30s, the bank will give you maximum loan amount with long tenure up to 30 years. By doing this you may end up paying very less down payment.

Start fixed deposits and recurring deposits

This may look funny, but this helps a lot. We happen to spend a lot on unwanted things and end up having no savings for future. By opening deposit accounts, you can start saving a lot of money. This way, you can minimize your spends and start saving for the deposit account. This savings then helps you make a huge initial payment if needed.

Invest in SIP Mutual funds

This is one more thing you can do to save money to buy a house. SIPs promise you a good return between 10-18% returns depending on which type of fund you are selecting and the tenure associated to it.

Start working on your credit score

The most important thing when it comes to buying a house is that you will need financial aid from a bank or a home loan lender. Make sure to have a good cibil score before you apply for a loan to get the maximum out of a loan buying process.

Every step you take to buy a house gets you one step closer. Just make sure the steps you take will help you in the long run as this is a long term commitment and you need to prepare for the same.