Ways to improve your credit score before buying property in Pune

Buying a property in Pune is an exciting milestone, but before you start house hunting, it’s essential to focus on your credit score. A good credit score not only increases your chances of loan approval but can also help you secure better interest rates, saving you thousands over the loan tenure.

If you’re wondering how to increase credit score effectively, here are some practical credit score tips for homebuyers that can set you on the right path.

Understand your credit score

Your credit score is a three-digit number that reflects your creditworthiness, usually ranging between 300 and 900. In India, lenders generally prefer a score of 750 or above for home loan approvals. Scores below 650 may lead to loan rejections or higher interest rates. The first step is to check your credit report from authorised agencies, and ensure all details are accurate. Errors in your report can drag your score down, so dispute any discrepancies promptly.

Pay your bills on time

One of the most impactful ways to improve your credit score is by paying all your bills and EMIs on time. Late payments signal risk to lenders, and can significantly reduce your score. Setting up automatic payments or reminders can help you stay on track. Consistent, timely payments build a positive repayment history, which is a major factor in your credit score.

Manage your credit utilisation

Your credit utilisation ratio—the amount of credit you use compared to your total credit limit—should ideally be below 30%. For example, if your credit card limit is ₹1,00,000, try to keep your outstanding balance under ₹30,000. High credit utilisation can negatively affect your score, so paying back balances and avoiding maxing out cards is crucial.

Avoid opening new credit accounts

While it might be tempting to apply for new credit cards or loans, doing so can temporarily lower your credit score due to hard inquiries. If you’re planning to buy property soon, it’s wise to avoid opening new credit accounts until after your loan is approved.

Maintain a healthy credit mix

Having a balanced mix of secured loans (like a home loan) and unsecured credit (like credit cards) shows lenders you can manage different types of credit responsibly. Avoid relying solely on unsecured credit, as it may raise concerns about your financial stability.

Regularly monitor your credit score

Keep an eye on your credit score and report regularly. This helps you track improvements, and catch any issues early. Many financial institutions and apps offer free credit score monitoring services.

Improving your credit score takes time and discipline, but following these credit score tips for homebuyers will make the process smoother and increase your chances of securing a favourable home loan. At Gera Developments, we understand the importance of financial readiness when buying a home in Pune, and we encourage all prospective buyers to take these steps seriously.

By focussing on how to increase credit score now, you’ll be better positioned to invest confidently in your dream home with a trusted, legacy brand like Gera Developments in Pune.

Taking control of your credit today means a brighter, more secure tomorrow in your new home.