I earn Rs. 42,000 per month and working in the current firm for the past 6 months. My overall work experience is 3 years. I recently checked my CIBIL score and was surprised to see a score of Zero! I couldn’t get any loan because of this. How can my credit score be zero when I haven’t defaulted or had any arrears in the first place? And how do I increase my CIBIL score quickly in the next 3 or 6 months?
Please do not panic if your CIBIL score has an “NA” or “NH”. It simply means that you do not have a credit history for CIBIL to give you a credit score.
However, rejection of a loan based on this will depend on the bank’s policies. Given the other factors in an application such as your salary slips and your ITRs, some banks may give you a loan. However, please do not make random applications and inquire from the bank if you will be eligible based on a “no credit history”.
If you have taken a loan or credit card previously and it does not appear on your credit report, you may request the respective bank to update your records accordingly.
We are sorry to hear about your situation. However, you will have to build your Credit Score before you can get a loan or a Credit Card. If you haven’t taken any loans or used a Credit Card, your Credit Score would be nil. The best way for a first-timer to build a Credit Score is to become a co-applicant for a loan. You could be a co-applicant along with your parents or a close relative who already have good Credit Scores and who make regular and timely loan repayments. Every time they repay the loan, your Credit Score goes up. You can also try and get a Credit Card against a Fixed Deposit. This will also help you build your Credit Score. Read this post to understand how Credit Score works - https://blog.bankbazaar.com/all-about-your-credit-score/.