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.
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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.
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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.
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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.

“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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