Have you checked your credit report? Is it the number zero? After that, you’ll need to work on improving your credit score. Furthermore, establishing a credit score from scratch is similar to being caught in a catch-22 position. How? No one will lend you money or offer you a credit card since you do not have a credit history, and to develop a Credit Score, you must pay your loan and credit card obligations on time each month. A free CIBIL score check is also an option to check your score more often. Is there a way out of this mess right now? Yes, without a doubt! Here’s what you should do in this situation.
Open a Saving Account in the Bank
The fact that you have a business connection with a bank may make it easier for you to get a financial product from that bank. Do you have a salary account? This is advantageous since banks are more likely to issue pre-approved loans and credit cards depending on the amount of money in your payment account. Even for Savings Accounts, these incentives depend on the amount of money you have in your account at the time of application. You may apply for any of those deals immediately from your online banking account if you have one.
Obtain a Deposit
Banks often provide secured credit cards or loans to customers based on their deposit amount. Your deposit serves as security for the bank, allowing them to place their faith in you and provide you with a loan or credit card. Most banks will provide you with a credit limit for your card, depending on the amount of money you have on deposit. It is important to note that the loan against Fixed Deposit is not disclosed to credit agencies until you fail on the loan.
You may use these Credit Cards just like any other Credit Card to make purchases or payments. If you default on your payments for an extended period, the bank may take the money from your deposit to pay down the debt on your credit card bar cart. In other words, if you receive a secured credit card, be sure to pay your payments on time every single month. Don’t you have the money to put down as a deposit? You may be able to seek assistance.
Try to get an Add-On Card.
Any member of your family may have a credit card. Inquire with them about obtaining an add-on card for you. The payment history associated with the card will be included in your Credit Score due to this action. Check with the person who provided you with the add-on card to verify that they are on top of their bill-paying duties since they will be responsible for paying the bills associated with your add-on card. By reviewing your credit score regularly, you can determine whether or not the card transactions are being reported to credit agencies. For those who are unaware, you may check your credit score as many times as you like without affecting your score.
Obtain a Personal Guarantor
Asking someone with a strong credit score to assist you in getting a loan is an option. Most banks will issue loans to those with no credit history, provided they can get a guarantor. However, it should be noted that the guarantor will be held equally liable for the debt. As a result, if you fail to pay back the loan, the guarantor may be required to reimburse you. Inform the guarantor of the situation right away. Do you want to keep improving your score? Here’s a quick workaround.
Borrow money over a Long period
When applying for a loan, be sure you choose the loan with the longest feasible term. This will be beneficial to you in three ways. Your Equated Monthly Instalment (EMI) will be low, the first benefit. This will make it easier for you to make payments without experiencing any difficulties. The second advantage is that your Credit Score will rise with each on-time EMI payment that you make. The next point to mention is that the longer the term of your loan, the longer your credit history will be. The length of time you have had loan accounts influences your credit score. Consequently, the more time your loan account has been open, the higher your Credit Score will be.
Correct Those Errors
Occasionally, incorrect information on your credit report might result in a zero credit score. Check that all of your personal information, such as your name, PAN, address, loan or credit card account information, is accurate. Correcting inaccuracies in your credit report can assist you in ensuring that all of your account information is transmitted to the credit bureaus.
Conclusion
It is not necessary to be complex to have a decent credit score. Simply following a few basic steps to get started and adhering to a disciplined debt payback plan is all you need to accomplish. Having a good credit score is beneficial in many ways, including the ability to get a credit card at a cheap interest rate, as well as the ability to receive speedy approval on loan applications, among other things. By following these, an individual may get an idea about how to improve credit score fast.
Read also:- What Does A Good CIBIL Score Mean For Getting A Home Loan?
