Credit Score for Property Buy: What You Need to Know Before You Sign

When you're ready to buy a property, your credit score, a three-digit number that tells lenders how likely you are to repay a loan. Also known as credit rating, it's the first thing banks check before they even look at your salary or down payment. A good score doesn’t guarantee approval, but a bad one can shut the door before you walk in. In India, most lenders want at least a 720 to give you the best rates on a home loan. Anything below 650? You’ll still find options—but they’ll cost more, and the process will be tougher.

Your credit score is built from your history of paying bills, how much debt you carry, and how long you’ve had credit accounts. Missed payments, high credit card balances, or too many recent loan applications can drag it down. Lenders don’t just care about the number—they care about the story behind it. Did you miss a payment because you lost your job? Or did you run up debt on multiple cards over years? The difference matters. That’s why some banks ask for a letter of explanation if your score dipped suddenly. And yes, they still look at your home loan application, the formal request to borrow money for buying property, which includes income proof, asset details, and credit history as a whole. But if your score is low, that application starts at a disadvantage.

Here’s the thing: you don’t need to be perfect. Many first-time buyers in Mulund and across Mumbai have credit scores in the 600s and still get loans. But they had to plan. They paid down old debts. They waited a few months after closing a credit card. They avoided applying for a new phone loan right before their property application. If you’re serious about buying, check your score now—not a week before you sign. You can get it for free through major banks or credit bureaus in India. If it’s low, fix it. Don’t wait. The longer you wait, the more you pay in interest over 20 years.

And don’t assume your landlord’s good credit means you’re ready. Renting doesn’t build credit unless you’ve used rent-reporting services—which most people haven’t. Your credit score for property buy is built from loans, credit cards, and EMIs you’ve paid on time. No shortcuts. No magic fixes. Just consistency.

Below, you’ll find real examples of how people in Mumbai improved their scores, what lenders actually look for when reviewing applications, and how small changes today can save you lakhs tomorrow. No fluff. No theory. Just what works.