Homemakers Still Need To Know Their Credit
When we consider homemakers, we usually have a preconception that they would not have a credit history or a credit rating. It is very rare that loans are made in name of homemakers. There could be a situation where homemakers would have never taken up any job or would have done after college but then, stopped due to reasons of bringing up a family. CIBIL score holds importance for homemakers due to unpredictable situations in life. When a homemaker has young kids to bring up, their education and other expenditures hold importance. Especially, in the absence of income earner in the family.
Importance of CIBIL to Homemakers
A decent credit score is what is consider before lending a loan. When there does not exist a credit history at all, you can’t get a home loan for any purpose be it for renovating home, educational loan etc. Neither you would be eligible to own a credit card to support yourself. Such a situation will require you to start working but then employers look for stable and creditworthy individuals. They look for that quality of being responsible for your liabilities.
How homemakers can improve their credit scores
Homemakers can improve their credit score by getting a credit card and use it smartly. Even if you got cash for small things you buy use your card and pay it off as soon as possible before the due date. Never wait for the last date to pay your dues as it will harm your credit score. Being regular and responsible enough in paying off your dues is a strong indicator of stability and capability in financial management. Following points may help-
- Having a saving account in your name and depositing money often will leave you a thick cushion in times of absence of income earner. This will help in having a strong financial backing. Some banks offer good interest rate on savings account that becomes an added bonus. Having a savings account will give you an added bonus to own a credit card, as banks know their customers well with KYC norms and this credit card will help you developing a credit history.
- If you are guarantor on a loan, it helps you build a good credit score. So if you stand as a guarantor or co-applicant for a loan taken by your better half, you will be able to have a good credit history on your ground. Make sure he/she pays off instalments on time and does not default on it. Starting as a guarantor will help you to improve your CIBIL score.
- Another good way to improve credit scores of both the individuals is to apply for a loan as co-applicants. If you are applying as co-applicants and paying off your dues in time, this will shoot up credit scores of both of you. Banks will then consider you optimistically seeing that you are responsible enough to pay your dues in time.
- There is no point of ignoring CIBIL score be it homemaker or a working personnel. CIBIL score will help you build your creditworthiness. If you are good at managing your finances and debt, securing a loan in future would not be a cumbersome task. No matter what happens, just make sure you pay your instalments on time and keep enjoying the fruits of credit.