You do not have a Credit History, yet you are looking for a personal loan. Now you might think that without having a credit history it will be difficult for you to get a personal loan, you are correct. It is difficult to get a personal loan without a credit history, but it is not impossible and here is how you can get them.
Get a credit card – if you do not have a credit history then, getting a credit card is one the easiest ways to build a credible credit history. However, you also have to remember that it depends on how you use the credit card. You should not exceed more than 30% of the credit which has been provided to you. If you use your credit card responsibly and pay all the dues on time then you will be able to build a good credit history which will help you get a personal loan.
Become a Co – applicant – Latch on to someone who has a good CIBIL score, it would do wonders for your absence of credit history. This might sound like an easy thing to do, but remember that you have to be careful too. When you become a co-applicant, you also share the responsibility of the loan. This implies that both you and the co-applicant are equally responsible for the loan. So remember, in case you are unable to pay EMIs in the future and default, your CIBIL score will also be affected in the future.
Provide collateral – Most of the personal loans are unsecured, but since you do not have a credit history, the lender is in a more demanding position. In this case, you can choose to offer a collateral such as your house or your car, which help your case become strong. What you need to understand is that there are a lot of risks involved for the lender if you are asking for a loan and do not have a CIBIL score. Hence, in order to strike the balance, you can offer collateral.
Apply for an online loan – One of the best ways to get a personal loan if you do not have a credit history is by applying for a loan online. There is a reason for this. Most of the online loan providers are more accommodating than the traditional lenders. As long you have a high and a steady income, you have a god chance of securing a personal loan.
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