When you have not borrowed in the past or have never had a Credit Card or a loan, there will be no updates about you with the credit bureau. CIBIL marks such cases as NH or 'No History'. Due to a lack of details, the credit bureau will be unable to comment on your payment behaviour. In such cases, some banks / financial institutions/NBFCs may not provide you with any unsecured credit facilities.
What If I Never Had A Credit Card Or Loan Before? Will I Have A Credit Score?
It is important to have a Good Credit Score for many reasons. Because your credit score is the one that enables you to request more credit in the form of credit cards, loans etc. There are many NBFC’s willing to offer loans and credit card without a credit score, but they charge you a very high interest rate. But keep in mind that not many lenders will be willing to lend to you.
So, how do I establish a credit score?
Since you are new to credit, banks can’t look into your credit score and history to determine whether or not to lend you money. In these cases, banks often look at other factors to determine your repayment capacity (such as your income and employment stability) and decide whether you are creditworthy or not.
If you are new to credit, then you can follow these tips to build a good credit score.
- Get a secured credit card: A secured credit card can be availed against a fixed deposit and helps in building a positive credit history, provided you pay all your bills on time.
- Make sure that you don’t apply for too many credit cards/loan products in a short period of time.
Why Secured Credit Card?
Banks issue these cards, which will be a great start for a new borrower to build your credit score. But you must be mindful of potential fees some banks charge for the particular product. If you don’t want a secured credit card, another option is to approach a bank and they might suggest you a credit card with a low credit limit. And gradually you can ask the banks to increase your credit limit, by ensuring that you pay all you bills on time.
As a part of our service CreditMantri helps you to improve your credit score and history. We help you to discover loans and credit cards matched for your credit profile. Reduce EMI and borrowing costs. What’s more important, you will not have to go through a full application and face rejection at the end. We do the hard work for you and weed out what is not suited for your credit profile.
A CIBIL score is a three digit number between 300 and 900 that gives potential lenders a quick idea of your loan
Credit repair involves rebuilding your credit health to a level where you become eligible for loans.
A CIBIL Score is an indicator of an individual’s credit worthiness. It impacts the individual’s ability to borrow
A credit report is a history of your credit behaviour and contains detailed information on all your loan and credit
A credit rating - also known as a credit score - is a 3 digit number between 300-900 that gives potential lenders
A bad credit score is generally one that is less than 650. A credit score is a three digit number in the range of 300-900
Yes. In fact, a credit score of 850 is very good! Most lenders look for a minimum credit score of 750 to approve loans
There are several ways in which you can improve your credit score. Depending on how good or bad your score is,
Is 800 a good credit score? Yes. In fact, a credit score of 800 is very good! Only a small percentage of people reach,
Is it possible to obtain a free credit check or credit report? The answer is yes and no!
Your CIBIL Score plays an important role in getting loans and credit cards sanctioned, because it gives lenders
It is not possible for anyone, either lenders or borrowers, to get a CIBIL score or credit report for free.
It is important to know that there is no such thing as a CIBIL defaulter list. There used to be a defaulter list earlier,
To check your credit history, you should obtain a copy of your Credit Report. For this, you need apply to one of the three
There is really no number that can be established as the average credit score in India. Many people see regular
You can repair your credit absolutely free if you do it yourself! However, many people choose to get professional help
It is possible to improve your credit rating or credit rating within a few months, depending on the state of your credit
A more relevant question is, “Is it advisable to get a loan with bad credit?” There is a chance you can get a loan if
It is important to remember that there is no instant quick-fix for increasing your credit score overnight or in a couple
First, it is important to note that there is no ‘Defaulters List’ that is maintained or circulated by CIBIL or any of the other
Sourav and Ankit are watching the New York Marathon on TV and decide that they want to run a marathon.
In India, the best credit score to have is one that is 750 or above. The three credit rating agencies that operate in India
Is a credit score of 700 good? While it is not a very bad score, it is not good enough to automatically qualify
It is difficult to get a loan with a credit score of 650. Most banks look for a minimum score of 750 when deciding
It is not likely that you will get a loan with a credit score of 600. Most banks look for a minimum score of 750
It is difficult to get a loan with a credit score of 550. Most banks look for a minimum score of 750 when deciding
A poor CIBIL score can increase your financial problems and make it difficult to access credit, whether as a loan or credit.
One common worry that runs through your mind after you have made a credit card settlement is,