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How to Build a Credit History If You Don’t Have any Existing Loans? (InfoGraphic)

Did you know? The three-digit CIBIL score is the numeric summary of your creditworthiness, based on your credit history, repayment history, and other factors. 

A good credit score is important for taking a loan from financial institutions at better repayment terms, low-interest rates, and for quick approvals.

But, what happens to your CIBIL score, if you don’t have a credit history or have ever taken a loan? Your CIBIL score will be marked as “NH” (No Hit).

How to Build a Credit History Quickly?

To be true, there are no shortcuts to establish or improve credit score in a quick span of time. It requires a planned and steadfast approach to build a strong credit history. The following simple ways can help you to build one.

Opt for a Low Limit Credit Card from Your Bank

Using a credit card for making online payments or at PoS machines, instead of a debit card will help you to build a credit history over a period.

The two things you have to take care of are, first, your credit card utilization ratio should be below 30%, and second, you should pay credit card bills in full within the due date to build a clean credit history. Paying only part of the credit card bill or the minimum amount due will cause your debt to accumulate, which would in turn drive down your CIBIL score considerably.

Apply for a Loan with a Co-signer

Apply for a loan with a co-signer who has a good credit score and enough income as it increases the chances of getting the loan application approved.

Apply for a Personal Loan from SMFG India Credit

SMFG India Credit personal loans offers loan upto INR 25 lakhs* for eligible applicants at attractive interest rates with flexible tenures between 12-60 months. You can apply online or visit your nearest SMFG India Credit branch.

By using any of the above-discussed ways, you can build a clean credit history and get a good CIBIL score against your credit profile. Always try to maintain a minimum CIBIL score of 750.

* Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us


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