Have you applied for a job before?
When you clear the interview round, do the recruiters ask you for a ‘Letter of Relieving’ from your previous organisation? Secondly, they also ask about the duration for which you were employed in your previous company.
Based on the answers to these questions, the recruiter makes his/her decision to employ you or not. However, if you are an ultimate fresher, then many companies will only consider you for an internship.
Similarly, when applying for a loan, many companies have a look at your credit score. However, if you don’t have a credit history, then the banks and money lenders will be hesitant to lend you a loan. That’s why many people are unable to get a personal loan in Ghaziabad.
According to a study by TransUnion CIBIL, more than 160 million Indian customers don’t have a credit score or a credit history. Surprising, right?
In this blog, we will address the issue of how to build a healthy credit score from scratch. So read thoroughly if you are planning for a personal loan in Ghaziabad without a CIBIL score.
Fixed Deposit Before Applying
Let’s suppose you want a credit card without a CIBIL (credit) score. However, you have a fixed deposit of ₹1,00,000 in that particular bank. In such a situation, the card lending authority will easily approve the applications.
Do you know why? It’s because whatever amount you have in the FD will be considered as collateral by the bank. In some cases, the amount deposited in your FD becomes your credit limit. This is the most suitable method if you are a first-time borrower and want to build a credit score from scratch.
Apply for Consumer Durable Loans
If you are a ‘New-To-Credit’ customer, then you should never apply for personal loans, business loans, home loans, etc. However, you should build a proof-of-repayment of loans. So, you should take smaller loans.
For example, you can take a loan to buy electronic appliances, furniture, and other home or office utilities. And then try to replay the loan on time. If you repay your loans on time, the loan providers will record that data and send the same to credit bureaus.
Buy Now Pay Later for Credit Score
Have you ever placed an order on the famous delivery app ‘Zepto?’
If you have, then you must know that you can ‘Buy Now and Pay Later.’
There are many such facilities, platforms, and apps that give you the option to buy goods and services without paying any one-time or upfront fees. In such a case, the customers can make immediate purchases and pay later.
Approach Your Bank for CIBIL Score
Let’s suppose you have a salaried account or a current account with ‘X’ bank. Now, you will have some financial relationships with the bank based on your transactions. Secondly, the bank also keeps a record of your financial history.
You can apply for a credit card from this bank for easy application approval. After assessing the history of your salary or current account, the bank can provide you new credit card.
Don’t Overuse Your Credit Card
Every credit card has a credit limit. So, when you get your credit card, you will be assigned a credit limit. Whatever amount you use from the total credit limit will be recorded. The ratio of the used credit limit to the total credit limit is called the Credit Utilisation Ratio (CUR).
If you have a very high CUR, then the banks will know that you are highly dependent on your credit cards. This practice will negatively impact your credit score.
Conclusion
It will take time to build a credit history. However, your credit score will be based on whatever transactions you make with the credit card from day 1. To get any loan, you need to have a good credit score ranging between 750 and 900. You can follow all the tips mentioned in this blog to build a healthy CIBIL score.