How to Improve Your Credit Score Before Buying a Flat in Calicut
Posted on April 07, 2025
While there are a number of important factors to consider while investing in real estate in Calicut, the financial aspect is the most critical. This is because real estate transactions involve large sums of money, and it’s not a decision to be taken lightly.
It is very difficult, and also not highly recommended, to purchase flats in Calicut for cash. Putting all that you have into a home may become problematic, leaving you with hardly any finances to manage your monthly expenses, medical bills, and other emergencies. It is advisable to apply for a housing loan, which will leave you with some money in hand. To avail a loan, you must improve your credit score before buying a flat in Calicut. This is because any bank or financial institution that you apply to, will check your credit score to decide how much risk you pose to them.
The higher your score, the better your chances of not just getting the loan approved, but also getting more favourable terms including lower interest rate.
What is a Credit Score?
A credit score is a number between 300 and 900, which denotes your creditworthiness. At the very minimum, you need a score of 650 to be considered for a home loan; if you want a good deal, like lower rates, and easier repayment terms, a score of 750 or above will do you good. Credit bureaus like CIBIL, Experian and Equifax analyse your credit habits over the years to calculate your credit score.
Why Do You Need to Improve Your Credit Score Before Buying A Flat in Calicut?
Your credit score is one of the biggest factors that decides if you are eligible for a home loan, and if yes, what amount and tenure you are eligible for, and what rate of interest you will be charged. Your credit score tells the lender how risky or reliable a borrower you are. It tells potential lenders how organized you are with your finances. Applicants with poor credit histories are likely to be charged higher interest rates, be offered shorter tenures, or even get rejected. Ensuring that you have a good credit score should be a priority in your real estate investment strategies in Calicut.
Tips for Improving Credit Score Before Applying for a Home Loan
You can follow these steps to improve your credit score before buying a flat in Calicut:
Pay Your EMIs and Loans on Time

This is one of the quickest ways to boost your credit score. Ensuring sufficient balance in your bank account on the days your EMIs are debited through ECS, or issuing cheques on time, demonstrates that you are a responsible borrower. Delays can cause your credit score to drop significantly. You can set alerts so that you don’t forget the due dates and avoid delays.
Pro Tip: Using a Home Loan EMI calculator helps you to check the EMI payable. You get results quickly and they are quite accurate. By helping you plan your EMI payments, they save you time, effort, and the worry of missing payments.
Manage Credit Card Balances
A high credit utilization impacts your score negatively. In other words, you should avoid maxing out your credit card. It is ideal to have credit cards with a high credit limit, and have a few cards, so that you use a small percentage of the limit.
Pro Tip: Pay off credit card outstandings in full; when you pay the minimum balance each month, it may affect your credit score, and additionally, you end up paying heavy interest on the outstanding amount.
Check Your Credit Report Regularly

There is always the possibility of errors in your credit report. Review your credit score from different agencies at least once a year and check each item thoroughly. If you find any discrepancies, immediately report it and dispute it with the relevant authorities immediately and get it rectified so that it does not affect you adversely.
Maintain a Healthy Credit Mix
It is good to have a mix of secured (home or auto loans) and unsecured loans (personal loan, credit cards) as this demonstrates an ability to handle various types of credit responsibly. Having only unsecured loans, or a high percentage of unsecured loans, could indicate financial instability and indiscipline.
Avoid Too many Concurrent Loans

Don’t apply for too many loans at the same time. Make sure you close a couple of them first. Having a number of loans running against your name can also bring down your credit score. Every time you apply for a loan, an enquiry is triggered; too many enquiries happening one after the other can bring down your score.
How Long Does It Take to Improve your Credit Score?
Now, one thing you need to understand is that this cannot happen overnight. It takes around 6 months to a year to see big improvements in your score. However, as long as you are consistent, you can begin to see small changes within a couple of months.
Common Mistakes to Avoid
When you want to improve your credit score before buying a flat in Calicut, there are some things to NOT do:
- Missing or delaying EMIs
- Overusing credit cards
- Closing unused credit accounts without understanding their impact.
Conclusion
Now that you know the importance of having a good credit score and how to improve your low scores, what are you waiting for? The sooner you become eligible to avail a home loan, the sooner you can buy your dream home.
PVS Builders is a leading property developer in Kerala, and you can avoid many of the common risks in investing in flats in Calicut when you buy from them. With RERA certification, top-notch amenities, and dedication to quality, PVS Builders have some of the best apartments in the most desirable residential localities of Calicut.