No credit history? Here is how to build CIBIL score from scratch

When a creditor receives your loan application, they send a ‘Enquiry Information’ letter to CIBIL, asking for your CIBIL score, rating, and history. Repeated loan applications represent multiple inquiries and demonstrate an overwhelming requirement for short-term finance. This is why lenders are wary of such inquiries, because this information contradicts your generally positive credit history and CIBIL score.

Credit is a need for most people in today’s fast society, and the phrase “to acquire credit, you must have credit” is apt, but stressful for new borrowers. Building credit from the ground up can be difficult, as credit history is required to get a credit score. The irony for new borrowers is that no bank or financial institution would approve a loan or credit card application without online check credit score.

It’s a no-win situation. You must take on credit in order to improve your credit score. However, you must have a strong credit history in order to obtain credit!

Don’t worry; we’ve compile a list of seven wise strategies for re-establishing your credit.

  • Request a Credit Card

Most banks and credit card companies avoid giving money to those who have no credit history. They evaluate an applicant’s repayment capabilities based on his or her credit history. As a result, in order to obtain new credit, one must have credit or have previously utilize credit.

As a result, the question becomes: how can one develop credit if lenders refuse to lend to new borrowers? Borrowers can breathe a sense of comfort because there are several options.

A credit card is one of the most typical financial items used to begin a credit journey. Applying for a credit card is simple and can help you build credit without having to rely on banks or lenders.

  • Avoid applying for several credit cards at the same time.

The credit score is effect by each credit card application. As a result, a borrower should aim to avoid making many credit card applications in a short period of time. Multiple applications are frequently interpret by lenders as a borrower’s credit-hunger. Multiple credit card applications might hurt your credit score, so be careful when creating a credit history. Rather than applying for many credit cards, it is preferable to use one that will help demonstrate one’s credit handling competence. When using a credit card, it is important to keep credit usage minimal and to pay bills in whole and on time.

  • Credit cards should be used frequently but with caution.

Someone may not have a credit score if they have never utilise credit or if their credit history is not consider sufficient by credit bureaus. Those who want to improve their credit score should utilise a credit card on a regular basis.

A solid credit score can be built over time, but it requires the use of credit cards on a regular basis and timely repayments. To keep a credit card active, it makes sense to use it at least once a month. This might benefit folks with an excellent credit history as well as those who are starting from zero.

  • Become a Co-User or Authorized User.

Another sensible strategy to start rebuilding your credit score is to become a co-user or authorised user on someone else’s credit card. If a person’s spouse or family member uses a credit card, for example, they can be added as an authorised user to the card. Those who are new to credit should be particularly cautious when using it, since a single misstep can have a direct impact on one’s credit score as well as the principal owner’s credit score.

  • Examine your credit utilisation ratio.

A credit limit is the maximum amount that a customer can spend in a month on any credit card. Credit agencies frequently evaluate credit card users’ credit utilisation ratio when computing credit scores. It’s a proportion of the available credit limit to the amount spent on a credit card. This ratio must be closely monitored because it demonstrates how well one can manage available credit. If consumers don’t want lenders to think they’re credit-hungry, they should keep their credit usage ratio between 30% and 40% of total available credit.

  • Pay your credit card bills and EMIs on time and in full.

Lenders frequently submit a borrower’s credit information to credit bureaus. When preparing a credit report and online check credit score, this is taken into account. One of the most crucial variables examined when evaluating cibil history is debt payback history. As a result, a single missed payment might have a negative impact on credit score. To maintain a good credit score, borrowers must make complete and timely payments.

  • Using Unsecured Credit Cards Wisely

A minimum of six months of consistent credit card usage is required to collect enough data for credit agencies to compile a credit report.

Borrowers who want to create a strong credit history using secured credit cards should use them frequently enough to demonstrate good financial management abilities.


Depending on how well and how regularly you use credit, it can take a long time to establish a credit history. It may take longer to establish an excellent credit score. Those who want to improve their credit ratings and keep them must maintain them, including timely loan repayments.


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