You might be living under a rock if you think banks will lent you a loan when you apply and that it is a one-way process, where you must choose the bank based on the its interest rate and file some cases and you’ll get the loan in the stipulated time.
Well, the credit market is a high-risk market and the lenders are skeptical in giving loans to the one they know nothing about. One of the most critical aspects of knowing a customer and his creditworthiness is the credit score.
What is a credit score?
Credit score is a scare based on your credit history, credit vintage which takes in account your behaviour towards a loan booked in the past including your repayment patterns, defaults if any, the loan tenure, and many other aspects.
Lending companies including banks and NBFCs, refrain from giving loans to first time borrowers as they do not have a credit score and it is thus difficult to judge the individual’s repayment patterns. There will be no credit score if you have not taken a loan ever. For such individuals, it is difficult to get loans. Hence if you are looking to take a car loan or a home loan in future or are planning to have a business and look to borrow money for its set up, you need to plan from today.
Here are things that you can do to improve your credit score without having a loan:
Apply for an EMI card
Bajaj Finserv offers No cost EMI card where you can shop at offline as well as online stores like Amazon, Flipkart & Makemytrip. The merchant list goes to 18000 physical stores in 900+ cities. You may apply for your EMI Card at Bajaj Finserv MARKETS platform.
Look for a secured credit card:
A secured credit card is a credit card for which a deposit is taken when a card is issued to you. The deposit taken is usually equal to the credit limit of the card. A secured credit card can be used like a credit card however a secured credit card is used temporarily. Choose a secured card that has the lowest annual fees also do a research if the credit card company reports to the major credit bureaus.
Look out for credit builder loans:
There are some loans that lets you hold the amount in his savings account and simultaneously lets you make payments from it. After paying off the loan amount, you can receive access to funds.
Take store credit cards:
The store credit cards are usually closed loop cards and sometimes co branded with some lending company. These cards usually come with less credit limit and can only be used to shop at the stores from where you have taken them.
Credit card builder loans:
Credit builder loans are secured loans offered by banks. In this type of the loan, the load amount gets deposited in the borrower’s saving account. Once the loans get paid off, the borrower then receives the authority to access the funds.
“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 works 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.”