How to get a Credit Score if I have zero or nil Credit Score?
There are people who have never taken loans or credit cards due to which they will not have a credit history and hence no credit score. As long as you maintain good credit habits—paying your bills on time and avoiding excessive use of credit cards and other revolving credit—your credit is likely to improve over the course of your life. But everyone has to start somewhere and, unfortunately, that creates a problem. If you don’t have a credit history or any data to draw from, lenders might be hesitant to lend you the money. But you’ll never establish your credit if they won’t give you a chance to prove your creditworthiness. Here’s what you can do:
Become an authorized user on an established credit user’s account.
A parent requesting a card for use by their child can help the youngster establish a credit history. The primary cardholder will be ultimately responsible for payments, so be sure they have a positive payment history—and discuss whether you can use the card and how your payments will be handled.
Open a new credit account jointly with an established credit user.
If you’re over 18, a parent, spouse or friend can apply for credit jointly with you. The loan or credit card account will be listed in both of your names, and usage and payment activity will appear on both cosigners’ credit reports. A word of warning, however: Both parties’ credit will suffer if the card is misused. Also, some card issuers don’t offer this option.
Obtain a secured loan such as Credit Card against Fixed Deposit, Loan against Fixed Deposit or Gold Loan, etc.
With a secured loan, the borrower puts down a cash deposit equal to the spending limit on the card/loan. Purchases and payments will be reported to the credit bureaus and can help establish a credit history. If payments are made on time and balances stay low, secured cards/loans can be an excellent way to build credit.
Get a Credit-Builder loan.
This type of loan is designed to promote good financial behaviour and help you establish or rebuild a positive payment history. As long as you make payments on time, your loan payments are reported to the national credit bureaus, helping you establish a positive credit history. (If you miss payments, that will reflect negatively on your credit.) When researching Credit Builder loans, make sure the provider reports payments to the credit bureaus.