Credit card Update: Many banks also give loans to a person who does not have credit history. Credit card companies also do this. Credit bureaus provide tools to banks to evaluate such applicants. However, not all banks use such analytical services of credit bureaus. The credit bureau uses data from individuals with no credit history and compares them to others who have the same profile. On the basis of comparison, they give the score to the applicant without any credit history. They use age, location, job profile, industry, years of experience, and designation.
Know how to make your credit history too
The easiest way is to log in to online aggregators. Many financial institutions offer cards and loans. Based on your profile, these aggregators will send your details to banks and non-banking financial companies (NBFCs). If the institutes are interested, they will call you. Individuals with no credit history can take an add-on card with their parents or close relatives. The add-on card will capture your financial transactions and help you to build a credit profile.
Once a person starts using such a card and starts repaying it on time, he will start building a credit history over time. Most credit bureaus take one or two years of history into consideration when assigning credit scores.
You can also take a credit card in exchange for a fixed deposit (FD). If you open an FD of 20,000 or more in the bank, it can give you a credit card linked to the FD. Its limit will be close to the amount you deposit. The bank has ease of issuing credit cards on a fixed deposit (FD) basis, as they can impose a lien on the FD if the person defaults. Also Read: Big Update From Ration Card: Do this important work before January 30, otherwise the ration card can be canceled
It is said that if a person opens a bank FD from Rs 20,000 then the bank will usually give a credit limit of 90% on the credit card. This means that the depositor will get a card with a credit limit of ₹ 18,000. In such cases the bank does not require any prior credit history.
