We are housing finance company that cares about the housing dreams of informal income spectrum. You aspire for a house and we help you to build your dream castle. National Housing Bank approved; IFL Housing Finance is amongst the first organizations in India to claim disbursal in 3 days. The epicenter of our firm lies in helping people across all over India to give shape to their dreams in the form of houses. Turning dreams into reality.

A credit score is basically that numeric value that summarizes a person’s credit history. This is one of the most important factors that play a crucial role when you need to get a loan approved by governmental or private banks or non-banking financial companies. There are almost every bank and non-banking financial companies who rely on the credit scores for the approval of home loans. Credit scores help them in the evaluation of the potential risk-taking capability that may occur because of lending funds for any purpose and to mitigate the losses. The credit score is in the core of India’s financial system which further helps the customers in securing their credit at a fast pace and helps loan providers to manage their business effectively.

Apart from this, credit score also helps you when you want a home loan approval and especially, when you are a first-time homebuyer. However, in case, you are making up your mind to take home loans, then IFL Housing Finance is the best option as they have further categorized the home loan which allows you to choose the best type of home loan.

However, as credit score has its own importance in the approval of home loans, then, let me help you understand it better and what are the basic 5Cs of the credit score that you have to keep in mind when you are going to be the first-time homeowner.

The 5Cs of the credit:

  1. Character
  2. Capacity
  3. Capital
  4. Collateral
  5. Conditions


In the times when the model towns’ and the social ice creams, it was easy for the people to recognize the character. But as time has changed its mood, and now the credit score is the criterion that decides the character of the person.

Your credit report card covers all the relevant information that a bank or any non-banking financial institution needs while providing your home loans. For instance, the credit accounts and the transactions are the details that are included in this list. A lender can also check out your credit score to get to know that exactly how many times you make timely payments. Apart from this, your credit score will also help in knowing that how many financial accounts you are handling in an efficient manner.

A credit score is a three-digit number that is an exact reflection of your financial report. For building an amazing impression on the lenders, you need to keep your credit scores on the credit reports higher lest it doesn’t become a hindrance between you and your home.

What You Can Do?

• Check Your Credit Reports:

Check Your Credit Reports

You need to keep a check on your credit reports and verify that the information mirrored from your credit report is absolutely accurate and current.

• Check Your Credit Score:

Check Your Credit Score

Make sure that you timely check your credit score too. This can help you get a directionally accurate view of your credit. However, always remember that the IFL Housing Finance can use any other methods too to check your credit score while you want your home loan approved.

• Find Out The Ways By Which IFL Might Categorize Your Credit Score:

Some lenders like IFL Housing Finance categorizes the credit scores in ranges. In case, your scores are within the sneezing distance of higher rate of the mortgage, then it could pay to wait and work on the improvement of your credit scores. According to the IFL Housing Finance, if you have a perfect credit score, there are least chances of yours’ defaults on a loan.



Your capacity is usually measured by your income and employment. It is all about the capability that you are financially able to repay the amount of the mortgage. Lenders can also review your recent federal tax returns that may or may not be combined with various other paying platforms and bank statements to verify your income.  Apart from this, the lenders like IFL Housing Finance can also relate your income and employment with your stability. It’s a part that lest your lenders know that how long you have been working.

Your debit to income ratio or the DTI ratio is also a criterion that your bank or any financial institution like IFL Housing Finance can consider to check your capability of repayment of loan amount. They help in analyzing that how much amount of additional debt you can handle and how much of credit risk you can pose.

What You Can Do For Ideal DTI Ratio?

What You Can Do For Ideal DTI Ratio

  • Try to lower down your DTI ratio if it is higher than you would like.
  • Make a healthy savings account.
  • Know every detail about the expected cash reserve.


Capital is the amount of money that you have once you have already bought a home for yourself along with any investments, properties and other assets you could liquidate fairly quickly.

What You Can Do?

  • Analyze that the down payment is the one of the most crucial part of buying a home.
  • Once you inquire about your credit score from lenders, make sure that you ask about the expected cash reserve.


Collateral is that value which secures the loan. Once you are getting a home loan, then your house becomes the collateral on its own. Collateral is something a valuable asset for which you pay the amount of repayment.

What You Can Do?

  • You can shop for collateral requirements when you compare mortgage terms.


credit score depends on the conditions of the financial market industry

The fifth C of the credit score depends on the conditions of the financial market industry. This is like a piece of background music that is attached to the purchase of your home. The ‘conditions’ include almost everything that is related to your home and their purchase, then whether it be interest rates or the amount of repayment of your home loan.

What You Can Do?

  • Be preapproved for your home loan.
  • Compare at various financial institutions to get the best deal on home loans. For instance, you can opt for the IFL Housing Finance for the best deals on various types of home loans.

I hope that now, you might have understood why it is so important to build your credit score stronger and how it helps you flourish in your financial career. For more information and expert solution regarding your home loans and the importance of credit score in your life, then you can reach out to IFL Housing Finance.

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