NO CREDIT HISTORY = NO LOANS !!

Afraid of owing a credit card after you heard of frauds taking place ?Fear of paying interest on borrowings is not letting you go for a loan ?

If yes, then it may be time to rethink. The next time you go knocking at the bank's door for a quick processing of loan, you may face a rejection or a delay. Banks and non-banking finance institutions are not too keen on lending to individuals whose payment track record remains a mystery.

Let's understand how. If you haven't taken a loan or a credit card in the past, then there is no credit history that is established and your credit score is in the negative (-1). Banks deals with caution, indulging in higher due diligence and hence would take a longer time to clear your loan application.

Bankers say that they prefer bulky credit records as opposed to "No Bureau Hit" cases. So a person having a 0 credit score would have a history of less than six months, while one without any loan records would have a score of -1.

If you are foreseeing a need for a home, car, education or a personal loan in future, it is time you start the preparation with a credit card. About two to three years of repayment track record, gives banks higher confidence in lending than a blank record.

for more details contact us at www.cibilconsultants.com