Are you looking to get a personal loan or home loan? If your answer is "yes", then it's important to know that you have to have a good credit score to qualify.
There are many people who apply for personal loans without CIBIL check. However, if their score is low, then they take damage in two forms- their loan application is rejected, and their score drops even further.
Some people have a different problem altogether, which is not having any credit at all. However, this is quite common and you can easily fix it with the following 6 methods:
Using a credit card is a really simple and easy way to build credit from scratch. This is because unlike loans, credit cards are easy to get. The approval process is not too stringent and most banks actually want to increase their credit card users as much as possible.
However, one thing to understand before you start using a credit card is that you should use it smartly. It's important that you pay its bills on time and avoid using it excessively. That said, you take care of these, you are sure to maintain a free CIBIL report with a high score in just a few months.
Banks are not interested in giving you a loan due to the lack of a credit history? Fret not. You can balance the risk-reward equation by getting a co-signer onboard.
If your spouse, brother or sister, etc. have a high credit score, then you can apply for a joint loan with them. This way, the bank will be comfortable enough to approve it by taking their free credit report into account.
Personal loans without CIBIL check are hard to get. So, if you don't have a credit score yet, then you can start with a small personal loan of an amount like Rs. 20,000 to Rs. 30,000 etc. This is because a smaller loan amount would be easier to get sanctioned by your bank. However, it will help you build credit nonetheless.
Just be sure to pay your EMIs on time, and you would be able to build a healthy credit report easily.
If nothing is working out, then it may be a good idea to talk to your bank directly and explain your situation.
You can ask your bank what you are supposed to do when you need a loan but don't have a credit history. This is because it's a catch 22 situation- you need credit to get a loan, but you also need a loan to build credit.
If you are an old customer of the bank and have had good relations with them, then it’s possible they will find a way for you.
If you have used a credit card or repaid a loan in the past but still you don't have a credit score yet, then you can contact the rating agency itself. Sometimes a report doesn't show a score due to technical issues or discrepancies. Sometimes the banks fail to share your repayment details with the agency too. Either way, you may benefit by looking into it and getting a confirmation.
Almost every adult needs a loan at one point or another in their life. However, not every person's free CIBIL report is up to the mark. This is where a credit improvement firm comes in.
A credit rating consultancy firm can look at your financial situation closely and offer the best path to follow to get the desired results. It's very likely that with help from a credit expert, you can get whichever loan you want as quickly and easily as possible.
Building credit from scratch can be as tough as improving a bad one. However, proper knowledge about how the system works, and virtues like patience and discipline can go a long way.