<\/p>\n\n\n\n
A home improvement loan can help you cover all the renovation related expenses without digging into your savings. However, a lender will diligently check your credit score before approving your loan.<\/p>\n\n\n\n
Yes, you do need a good credit score<\/a> for home improvement loan. Why? Let\u2019s explore in detail.<\/p>\n\n\n\n A home renovation loan<\/a> is essentially an unsecured personal loan. So, you can apply without pledging any collateral. Still, financial institutions have to evaluate your repayment capacity before lending out any funds.<\/p>\n\n\n\n That\u2019s why they check your eligibility based on various factors including, age, work experience, monthly income, nature of employment, credit score, etc. Your credit score, being one of the most important criteria, reflects your creditworthiness.<\/p>\n\n\n\n Credit bureaus like CIBIL, CRISIL or Experian calculate this score considering your existing debt, past payment behaviour, credit mix, length of credit history, etc. It is a three-digit number that ranges from 300-900. And no matter what type of loan you want, lenders consider a CIBIL score of 750 or above as the ideal benchmark.<\/p>\n\n\n\n Additional Read: <\/strong>5 Habits to Have to Get yourself in the above 800 Credit Score Club<\/a><\/p>\n\n\n\n A CIBIL score typically falls under four categories: bad (or poor), average, good and excellent.<\/p>\n\n\n\nHow your credit score affects your home improvement loan eligibility<\/strong><\/h2>\n\n\n\n
What is a good credit score?<\/strong><\/h2>\n\n\n\n