How To Create A Credit History Without Any Existing Loan?

ByDaniel Clark

In modern times, the credit score of an individual has become very important, and it is equally crucial for the banking world. Lenders always swear by it, and customers want to remain updated with the same.

Considering the present credit market, you cannot deny the significance of credit score. It is commonly seen that people who have never taken loans or credit cards quite often feel left out. It is because they don’t have any record of credit history in their life, and thus, it suggests that they don’t have any existing credit score.

Are you one of them? If yes, don’t worry and sit back in, relax and check out the post to know how you can create credit history without having an existing loan.

  • Get a Credit Card With Low Limit from Your Bank

Considering you as a salaried employee, you can easily plan for having a low-limit credit card with a similar bank that manages or hosts your salary account. This is easy as the bank already has proof of your regular income. Additionally, the application process will be very smooth.

All you need to do is to maintain the credit card very responsibly once you get it. This includes repaying all the bills on time and remaining within 30% credit utilization ratio. If you feel that you can fulfill these expectations for the next six months, you can easily kick-start the credit history along with a handsome credit score.

Make sure that the score does not go down by paying payments every month on time. You can also get in touch with a reputed and reliable loan distributing agency to get a loan.

  • Buy Anything on EMI Scheme

It could be a premium flagship smartphone or cutting-edge laptop – make sure to ignite the credit score with your purchases made through the EMI scheme. In most of the cases, electronic stores offer consumer durable loans, and they let you repay the amount in monthly installments, contrary to the usual down payment method.

For example, if you are planning to pay for your smartphone in the next 12 monthly installments, in the next six months, you will have a strong credit score. Just make sure that you are making regular payments.

How to Maintain the Credit Score?

Starting with a credit history will not help, and you need to maintain it in the long run so that it does not hamper the score as well as the progress. Let’s check out some useful tips to maintain your credit score.

  • Make timely payments – Not following this will reduce the score and have a negative impact.
  • Don’t ignore the alerts for bills – Default payment can hurt the score largely; thus, it is important to pay attention to all the bill alerts so that you don’t miss one.
  • Don’t spend more than the credit limit – Experts always suggest to remain within 30% of the given credit limit. For instance, you have given a credit limit of 40,000, make sure to keep the limit within 12,000 to keep the credit score grow easily.

If you maintain a good credit score, you can easily avail loan from a loan distributing agency easily without any hassle. Make sure to check your credit score at ApnaPaisa.com in just few minutes and check your eligibility for a loan.