CIBIL Score: 5 ways to get a good credit score without a credit card
Not using a credit card doesn't deter you from getting a good CIBIL score. In such cases, taking a loan or maintaining a report of timely rental payments could help in maintaining a good credit score.
One of the most important considerations for getting approvals for any credit facility is your CIBIL score. This is a three-digit numeric value that summarises your credit transactions in the past. Maintaining a healthy credit report and timely repayments could help in maintaining a good CIBIL score.
As your credit score depends on your past record of managing different credit facilities, credit card usage is always taken into consideration while deciding your credit score. However, you can still build a good credit score without having a credit card.
5 ways to ensure good credit score without a credit card
Take a loan: You can take a loan from a bank or NBFC to meet your financial needs and this can give a boost to your credit score if you repay all the dues in time. Try not to miss even one instalment as that could affect your CIBIL score negatively.
Traders' Diary: Buy, sell or hold strategy on SBI Life, Emami, Godrej Properties, Dr Lal PathLabs, Birlasoft, over a dozen other stocks today
Agency hired by India to scrutinise Canadians' visa applications withdraws notice on suspension of services
Timely payment of bills: Paying bills on time could aid in enhancing your credit score. Don't miss the deadlines for bill payments as it could hamper your credit score. This will help you in building a credit report that you can present to the lender to assure them that you don't skip payments and that you're diligent with making repayments.
Rental payment report: If you're living on rent then you can use rental payments' record to convince the lender about creditworthiness. These payments like other payments can justify that you don't skip paying the dues. However, this information can be considered by a lender only if your rental payment report is made available to them.
Have a reliable job: Most personal loans require the minimum income criteria to be met and having a reliable job that pays well could be an advantage. Even if you're earning from other sources or investments, don't quit your job as the other sources aren't as reliable and the lender could refuse accepting your application for any credit facility.
Get a Peer-to-Peer lending loan: A P2P lending loan refers to the borrowing acquired from individuals via online lending platforms. It can be beneficial if you don't want to avail a loan through a bank or NBFC or in case the process is tedious, then try getting a P2P lending loan, which is considerably easier to acquire. Consider paying all the dues on time to improve your CIBIL score.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
PM Modi to visit Varanasi on September 23; to lay foundation of cricket stadium, inaugurate Atal Awasiya Vidyalayas
Success of Chandrayaan-3 will have big impact on India's industrial, technological ecosystem: Nirmala Sitharaman
Signatureglobal IPO hits D-Street: Subscription status, issue price, listing date, other important details to know
Traders' Diary: Buy, sell or hold strategy on BHEL, Titan, NTPC, NBCC, BDL, over a dozen other stocks today