Constructing A New House? Here Is How Having A Credit Card Can Make Everything Streamlined


Constructing your own house from scratch, based on your preferences and taste, is one thing that is on most people’s wish list. The immense joy and happiness that you feel, when you see your house in front of you, that you built with all your love, is something that just can not be put in plain words. 

But this process can be long and complicated. Just like how the foundation of the building must be strong, your preparation must also be rock-solid, especially when it comes to the financial part of the procedure.

Planning your budget as well as your different means to meet ends becomes of the utmost importance when it comes to constructing a new house. However, having a small rectangular shaped card in your pocket can make all this simple and easy for you. 

Let’s Start with the Basics 

One method through which people are able to construct their dream house is by asking the bank for a loan. 

Generally, most banks approve your loan request for constructing a house after processing your documents and finding you capable of repaying the loan promptly. 

The total loan amount given may vary from one bank to the other. But one of the factors that most banks will check before approving your loan request is your credit score.

What is a Credit Score? 

Your credit score or your CIBIL (Credit Information Bureau India Limited) score is basically a three-digit number that reflects your credit history. It takes into account all the credit and loans taken in the past, their status, and also if there are any arrears.  

The credit score ranges from 300 to 900. If you do not have any outstanding dues and do not use too much credit, then you have a better score.

House loans are approved by the bank if your credit score is 750 and above. 

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How Does a Credit Card Improve Your Credit Score? 

Firstly, let us consider for a moment that you do not have a credit card. You go to a bank and request a loan for the very first time in your life. At this moment, the bank does not have any credit information about you that can show how punctual you are in paying back money and whether or not you have any dues.  

This is one place a credit card comes in handy, as it builds your credit score over a while. But it must also be noted, that you do not misuse this credit card as that may negatively impact your credit score. 

Home Loan EMI 

The repayment of your loan usually takes place in a series of pre-determined scheduled payments and at a specified interest rate. This is also known as EMI (Equated Monthly Installment).   

As mentioned earlier, the homework that you do, even before taking a loan is very important. It is during this process that you must know how much loan you require and within how many months you will be able to repay this loan at a particular interest. This is where a credit card repayment calculator can be beneficial for you.   

A loan EMI calculator helps you in making the right decision by telling you how much EMI you might have to pay towards your credit card expenses. Thus, it gives you the correct image of the amount of money that you might have to spend at the end of each month 

Other Advantages Your Credit Card Can Offer 

Apart from improving your credit score, there are other added advantages that your credit card can give you when you construct your house. 

Useful in Urgent Situations

Sometimes you have to urgently go to the store to buy certain accessories that are required for the construction of your house. This may vary from buying paint that makes your house look beautiful to even a few nails that keep the structure together. If you are out of cash at that moment, then a credit card can come to your rescue. 

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Using Credit Card Rewards for Home Construction

Home construction can get really expensive sometimes. So, why not try and get some perks along the way? 

Almost all the credit cards today, offer you cashback on any amount spent using the card. Apart from cashbacks, they might even offer rewards like points, which you can accumulate over a period of time and then redeem later for overall cost reduction. 

Here are some instances where you can use credit card rewards for saving money on your new house:

  • Buying paint
  • Buying hardware like nails and hooks
  • Buying decorative pieces and furniture

Another way in which you can be benefited is by paying your credit card bills using certain apps like CRED, which give you additional rewards when you pay the bills on time. 

Importance Grace Period for New House Construction

When it comes to paying your credit bills, many banks offer you a grace period, wherein you do not have to pay additional interest on the amount used for purchase. 

This generally ranges from 20-50 days, but it differs from bank to bank and also on the date you make the payment with respect to your current bill cycle.

The grace period is very important, especially in the case of constructing a new house. When you construct a new house, your expenses are significantly higher than normal and might even shoot above what you had foreseen. Hence, having some breathing time for unforeseen circumstances is a blessing in disguise.

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What If You Have The Wrong Card? 

What if you already have a credit card and you feel that using it is not rewarding enough or that other banks are providing better offers for your new house? In such cases, you might want to change this credit card to a new one. 

The procedure of getting a new card is pretty simple and easy. All you have to do is meet the required criteria and apply for the type of credit card you need in the respective bank.

For the process of changing your credit card, let’s say you have an SBI credit card for example, and you want to cancel this card because you are not satisfied with its features, or maybe you want to change it to a new card which gives you better benefits. 

Then you might probably be thinking of how to close SBI credit card. The possible ways of doing that are writing a letter to them, or calling customer care, or going to the bank physically. Online facilities might also be available to do the same. 

While getting a new card might give you more benefits like, for instance, a new user benefit, it must also be taken into consideration that changing your credit card might affect your credit score temporarily. 


Credit cards have revolutionized the financial industry with its onset. They can be used in almost every place at the moment, and the entire process is completely hassle-free. But many people make the mistake of misusing this card, which leads them to a financial crisis. 

With prudent usage of a credit card, life can get easier even when it comes to building a new home for yourself. So, head out there and turn your dreams into reality!