Buying your own home is always a dream you want to be true. Nowadays it is one of the hardest parts of our life. Buying a home is not that easy. The daily expense has reached sky so it is difficult to save from it and buy a new home. To fulfill your dream home loan is the best option on your hand. You can take a simple home loan to make your dream true.
It is kind of difficult to get a home loan if you have a low credit score. Some lenders do not want to take any risk by giving a home loan to that person who has a poor credit score. As your CIBIL score stands for your past repayment history so if you have a low credit score that means you haven’t repaid your past loan properly. Though every lender has a different set of requirements and criteria have to sanction your home loan. If some lenders have rejected you, but there are chances that you will get a home loan. But there are chances that your home loan interest rate can be high. Credit Score less than 750 considers bad credit score and it is kind of difficult to get a home loan with having such a low credit score.
How to get a home loan for low credit score?
If you are someone who has low credit score but you want to take a home loan but you are not getting it for your low credit score. The first thing you need to do is try to pay off all your debts to the credit score can be improving. If your family member has a good credit score then take this home loan with one of your family members. You can apply for a home loan jointly so it will be easy to get.
You can also apply to that bank where you have all your savings accounts and deposits. As you are their loyal customer. It will be easier if you have recurring deposits and fixed deposits with them. They will also give you attractive interest rates.
Advantages of Home Loan with the bad credit score
- If you pay your Home Loan EMI on time it will help you to improve your credit score so next time you go for a loan it will easy for you to get it.
- Home Loan with bad credit score will help you to pay off the total loan amount by paying a lump sum amount.
- You can pay your home loan amount through EMI (Equated Monthly Installments) and it will be also for you.
Disadvantages of Home Loan with bad credit score
The main disadvantage for bad credit home loan is the interest rate will be higher and you also have to pay the charges and fees associated with the home loan so the home loan can be higher for you. If you want to avoid this you can take a loan and can repay it so your home loan can be less costly but most of the time people with bad credit score avoid this disadvantage as it is hard to get a home loan for them