By now, you are already aware of the fact that if you intend to borrow a home loan from any bank in the country, you must have a CIBIL score of 750 and above. With the banking regulator aspiring to bring in more transparency in the process of lending, you credit score is increasingly going to make a big difference whenever you apply for a loan.
There are several parameters that go behind the make-up of your CIBIL score and the most important one is your repayment history. If you are guilty of non-payment or habitually delaying your payments on credit card bills or other loan accounts, it is bound to have a negative impact on your score that in turn will hamper your chances of getting a loan.
Here is how your late payments impact you as a borrower:
So, if you were to ask what will be the impact of a late payment or a missed payment on your credit score, the answer is that it is going to depend on how good or bad your score is in the first place. The irony of the situation is that the better your score, the worse the impact is of a single late payment on your credit score. According to rough estimates, a single payment missed may shave off as many as 50-70 points from your CIBIL score.
Lets now scrutinize exactly how late payments may impact your CIBIL score:
The advice to any aspiring home loan borrower is to get your CIBIL score and report at least a year ahead of when you intend to apply for a home loan. You should also ensure timely payments on all loan accounts regularly for 12 months before you fill you that a loan application form. Applying with a high credit score not only increases your chance of getting a loan, it also gives you greater negotiating power to ask for better rates of interest on your loan.