How Long does it Take to Improve Credit Score for Home Loan?

For those planning to buy a house, CIBIL score or credit score plays a major role. Since acquiring a home loan can be a daunting task with a low CIBIL score, most people give up all their hopes and turn to different modes of getting funds for their house. But most people don’t know that they can take their credit score to a satisfactory level to apply for a home loan with some changes on their credit usage.


If you have a low credit score, you have to make a few changes for damage control. However, you have to understand that it can’t be done in a day. Improving credit score can take anywhere between 6-18 months, depending on the individual’s score. The major point in increasing credit score is taking care of factors that impact it such as your previous loan repayments, outstanding balances, credit limit utilization, settlements and defaults, among others. Here are a few tip to help you efficiently improve your credit score


  • You must pay all your credit bills prior to the due date every month because a delay of even a single day is noted by the financial institutions, which further affects your credit rating.
  • In case you have previous loans standing with high interest rates, you must try to clear them and reduce your interest rate as the high interest rates affect your CIBIL score.
  • Use credit limit wisely. Don’t ever exceed it and if you use more than one credit cards, make sure you distribute your expenses across all of them instead of using just one card excessively.
  • Plan ahead to keep your expenditure balanced and prioritize your monthly expenses in order to stay within the card limit.
  • Keep a buffer limit on your cards to reduce the overspending.
  • If you have outstanding loans, don’t borrow from other means to repay the loans. This impacts your creditworthiness negatively, eventually affecting your CIBIL score.
  • Don’t pay off your credits with large sum of money at one go, instead stick to regular monthly payments. Paying huge amount at one time gives the impression of financial instability.

There is no precise prediction for the time it takes to improve the credit score of an individual to apply for a home loan. It usually depends on the score and credit behaviour of each individual. Credit score improvement, nonetheless, is quite easy and with some patience, everyone can achieve it.