Is a poor or no Credit Score the end of the line for you?

Recently, a middle-aged person tried getting a loan from his local bank. He had taken a small vehicular loan about 10 years back and had paid it off on time, without a single late payment. He has never felt the need to take another loan or maintain a credit card. He received a jolt when he was denied a loan by the bank because he did not have a credit score, when he applied for it this time. Have you faced a similar problem and are wondering what to do about it? Don’t see a road ahead of this obstacle? Then it is time you learn more about credit scores before you try applying for a loan again.

Any reputed Credit Repair Company will provide a comprehensive list of corrective options, but here are some of the common ones for your easy reference:

1. The lack of a credit score should definitely not be a dead end for you. It is important you find a bank that may agree to lend you a small loan even without a credit score. They may charge you a high interest rate as they may consider you a slightly bigger risk than usual, but if you are keen to create a credit history and credit score, you will have to run the loan for some time. When the bank reports your timely payments to CIBIL, your credit history would then be created and you can get a score.

2. If you have got a credit report and your CIBIL score is poor then it is important that you quickly work on taking up the task of rectifying the issue straightaway. Firstly, check the credit report and ensure there are no fraudulent cards or loans showing up there. If there are any, immediately report it to CIBIL and contact the bank named in the report to get the entry removed from your report. If you can provide sufficient evidence that the entry should be deleted, CIBIL will issue a new report within 30 days and will re-assess your score.

3. The second thing you should do is close all unwanted credit cards by completely paying them off or consolidating your debt. Too many loans and credit cards showing on your report indicate you live a life above your means, which necessitate you to borrow large sums of money. Some cards may have a small balance that you have been ignoring for a while but is now seriously jeopardizing your credit worthiness. Go ahead and close them immediately by paying them off. Look for a bank, which can offer you a loan big enough to consolidate 2-3 of your cards and loan debts at a reasonable good interest rate and close the multiple accounts to have one debt account.

4. Lastly, ensure you start making your payments on time for all your loans and cards. Late or non-payments are the biggest obstacles to getting a good credit score whereas prompt payments will increase your score dramatically in just a few months’ time.

Take these few steps and get a good credit score in place today for a secured financial future.

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