Pradeep and Mithi Kakkar have lived in rented apartments for the past 10 years in the city of Mumbai. The couple has saved up enough money for the downpayment for a two bedroom flat in Dombivli, a far flung suburb in Mumbai. They are under the impression that just having enough money for a down payment will qualify them for a home loan they intend to take shortly.
But all their dreams may just come to a naught from what Pradeep recently heard from his boss about a poor credit score. What the Kakkars’ did not know is that a poor CIBIL credit score can be the cause of a bank rejecting a home loan application altogether. The Kakkars’ like any other upwardly mobile couple in Mumbai have used credit cards and have missed a few bill payments too.
To avoid making a mistake like the Kakkar couple, here’s what you should know about what is responsible for pulling down your credit score-
Make sure you do not commit these mistakes, particularly if you are planning on a big purchase in the future like a home or a car.