It does not rarely happen that a person with a pure credit history cannot receive a loan due to the absence of experience as a borrower. And it would seem that this is the opposite should be an advantage, because there is no story — there is no reason to believe that you can be an unfair payer. But, banks often do not trust such a category of citizens and refuse a loan.
Today we will answer the question: «You can or cannot be issued a loan without credit history?». And what is it possible to do to increase your chances of getting a loan?
All information on your loans is kept in the credit bureau. Such a set of data on the history of payments on the loan, their timeliness, delay, and so on, create a credit reputation. If you pay on the schedule of payments in time, do not delay with payments on debt, then you have a good credit history, but if you are not fulfilled by the loan agreement, your reputation will determine that further adversely affects the design of a new loan product.
Credit registration without reputation is possible, but very often banks are asked as a guarantee of the fulfillment of obligations under the loan agreement. But, not every borrower can provide the bank property in a deposit, or find a coacher who would agree to carry the same liability on the loan as his friend, as it is very risky. Therefore, it is easier to create a good credit history before contacting the bank for a loan.
To create a credit history you need, at least several times to use one of the ways offered below. In essence, you need to start working with banks before taking the main loan. It sounds strange, but believe me, with small steps you will come to a positive reputation that will allow you to make a necessary loan.
Having a sufficient salary level, you can try to become a coacher or guarantor in someone else’s loan. And in the case of a successful loan payment, it will be marked in your dossier. Of course, this method of starting credit history is very risky, because, being a coacher or guarantor, the main borrower can stop paying the loan, then the entire responsibility for paying the balance on debt and interest on the loan will go to you. And, if you can also not pay the bank, you will be imposed on you penalties, right up to court proceedings.
The easiest way to get a loan without special difficulties, including a clean credit history, is to appeal to microfinance organizations. In such organizations, as a rule, minimum requirements are made to the borrower, and get a loan becomes more possible. Taking a small amount of the loan, and paying it on time, as a result, you can get a positive credit history.
Buying goods in stores can not only bring emotional joy, but help you get more chances in the approval of the loan. To do this, you need to buy goods in installments, and conscientiously deposit monthly payments according to the schedule.
Credit cards are available to almost all citizens. Even if your income level is low, you may approve a credit card with a small limit of cash. But even a small amount that you will constantly spend and replenish again, can solve the problem with the approval of the loan. And if your income is high, most likely you will be offered a credit card with a big limit, and you can make large purchases on it. All information on the timeliness of the card replenishment and the lack of overdue will be transferred to the credit bureau.
Summing up this, we can conclude