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Have No Credit History? Here's How to Start Working Towards It

By Finserv MARKETS - May 2,2020
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Credit History and Credit Report

Your credit history plays a crucial role in the approval of your loan application. Financial institutions evaluate your credit history very critically to get a better idea of your financial status and the nature of expenses. Good credit history is reflected by a high credit score. If you have repaid all your previous loans on time, there are high chances that you will have a good credit score. Thus, if you happen to apply for a loan with a good credit score then the lender will consider you as a low-risk applicant and approve your loan application quickly.

Since your CIBIL score or credit score is determined by your credit history, your credit score will automatically be zero if you have never availed any credit. In such a scenario, if you apply for a loan, lenders may not be able to evaluate how good you are at managing your debt. This can lead to the rejection of your loan application.

Steps to build your credit score

There are certain measures that you can take to start working towards your credit history. These strategies will help you build your credit score with time.

  • Avail a personal loan

If you are an employed individual with a salary account, you may stand a great chance to avail a personal loan without having any credit history. This is because lenders prefer employees with reliable monthly income sources.It provides the lender surety as far as loan repayment is concerned. That means a salary account can help you avail a loan despite your zero credit score. Therefore, you can consider availing a personal loan to meet any of your personal expenses. By availing a personal loan and making its timely repayment, you can build your credit score gradually.

  • Purchase a secured credit card

If you do not have a credit history, there are high chances that the lenders won’t offer you an unsecured card. However, you can consider the option of purchasing a secured credit card. Purchasing a secured credit card can prove to be a great option. With the increasing competition in the banking and finance sector, there are many lenders that are willing to offer credit cards against a fixed deposit. Once you get the credit card, make sure that you utilize it wisely and pay the bills on time to have a good credit score.

  • Savings account holders

You can also make use of your savings account to build your credit score. In case you are an existing customer of a bank and have maintained a savings account for the past 1 or 2 years, there are high chances that you can avail of a loan or a credit card from the same bank. In this case, it is essential that you share a good relationship with the lender.

Once you have built your credit history, and have a decent CIBIL score, you must try to maintain it by being financially disciplined. You must also pull your CIBIL report and check your CIBIL score on a regular basis. As per the RBI guidelines, you can check your CIBIL score for free once every financial year. You can check your CIBIL score by visiting the official CIBIL website by paying a nominal fee for the same. You can also check your CIBIL score for free at Finserv MARKETS. Let us take you through the process for the same.

How to check CIBIL score at Finserv MARKETS?

Step 1: Go to the official website and click on “check CIBIL score” and fill in the required details.

Step 2: You will then receive an OTP on your registered email ID and mobile number. You must verify your identity by confirming the OTP.

Step 3: Once you’ve verified your identity, you will be able to view your detailed financial health report consisting of your CIBIL score.

Check CIBIL Score
One of the major advantages of checking the CIBIL score at Finserv MARKETS is, it would be a soft inquiry and thus it won’t affect your credit score. Now that you know how to check CIBIL score, you must check it at regular intervals and try to maintain a high credit score. You can maintain a high CIBIL score by making timely loan repayment, minimizing your credit utilization, clearing your outstanding dues, and by having the right credit mix. Apart from checking the CIBIL score, you can also get a wide range of other financial services such as loans, insurance, smart investments, and many more at Finserv MARKETS. Head to Finserv MARKETS now! You can easily avail a personal loan at Finserv MARKETS through a quick and convenient online application process. Additionally, you can get access to value added services like Financial Health Check Report, which is a customized report of your credit performance. This will give you a proper insight about your finances and help you be more financially disciplined.

“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”


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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522