How To Get A Good CIBIL Score Without Any Credit History?

A credit score or CIBIL score signifies your credit behavior and shows how you have performed while paying back the loans or while using a credit card. All these activities are stored in the form of credit history and this history is used to set a matching score for your profile. A good CIBIL score increases your chances of getting a loan or a new credit card. But what if you never had any loan or used a credit card? Simply put, what if you never had a credit history? Well, the simplest way to answer this is that you will not have any credit score. There would be no numbers in your score, rather it is shown as NA or NH (No history). 

In this article, we are going to talk about the ways by which you can get a good CIBIL score in case you don’t have any credit history. 

• Apply for a Credit Score:

The first and the simplest way to start building a good credit score is to get a credit card. A credit card is one of the best financial products ever made. The card is issued with a prefixed credit limit, within which you can use the card for purchases and transactions in multiple categories.

• Settle your Card’s bill on time:

It is always advisable to settle your credit card’s monthly statement on time. Every credit card bill comes with a due date. Therefore, if you pay the bill way before the due date, it would leave a positive impact on your credit score. Moreover, you would be protected from heavy interest rates and late payment fees.

• Use below Credit Limit: 

Every credit card is issued at a pre-defined credit limit. The credit limit defines the maximum amount you use your credit card for. Always try to keep the used limit below the assigned credit limit. This will also help you to build a good credit score.

• Pay your EMIs on time:

If you are paying any EMI, then it would be better that you never default on any. The credit score is highly impacted if you ever default on any EMI. Therefore, always save and plan when you are paying the EMI.

• Debt to Income ratio:

The debt-to-income ratio is a ratio of debt that you are holding and the income you earn. Always keep your debt lower than the income you hold. If the debt portion is bigger than the income you hold, your credit score will be Impacted.

Bottom Line:

Building a good credit score takes time. It is not a short-term process, rather it can take up to a year or two to build a good credit score. The idea and the mindset should be to settle the debts first and under a manageable limit.

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