Maintaining a great credit score is your key to easy loan and credit card approvals! But for you to maintain it, you first need to begin building a score from scratch. Here are some ways which can help you:

Apply for a Credit Card

Not having a credit history makes lenders contemplate your creditworthiness. They hesitate to lend you money because they cannot assess whether you are a reliable person to give out a debt.

So, you need to start building your credit as soon as possible! And one way to do it is by applying for a credit card. Before heading ahead, here are two types of credit cards you can apply for: secured and unsecured.

  • Secured Credit Card: People who do not generate income or are new to credit can apply for this card. You have to keep something as security.
  • Unsecured Credit Card: Beginners have a hard time availing of this option due to their non-existing credit history. However, if you are earning, you might get accepted for one.

If you are getting rejected for an unsecured card, apply for a secured one, as it may increase your chances of acceptance!

Go for Higher Credit Limits

A CIBIL score takes into consideration your credit utilization ratio which is the total credit limit you get to spend on a credit card. However, you lower your score when you cross the 30% limit.

To tackle this, get a credit card with a higher credit limit. Your credit utilization is lowered when the limit goes high, and your balance stays the same. This gives you a chance to improve your credit score.

However, increasing your credit limit is not easy. If you have a sudden increase in your income or maintained years’ worth of great credit history, you are eligible for it.

Don’t Apply for Multiple Cards at Once

When you apply for a card or a personal loan, the lender will check your credit history. This investigation is known as a hard inquiry. Every credit card application leads to a hard inquiry in your credit score report.

This multiple application also makes you look like a credit-hungry individual. And your credit score takes a huge dip with multiple hard inquiries. Therefore, avoid applying for multiple credit cards.

Make Timely and Full EMI Repayments

Lenders report your credit data to the credit bureau. This data is then considered when calculating your CIBIL score and making your CIBIL report. The report carries different points for all the elements that influence the scorecard.

There have been no revelations as to what element carries how many points, but it is believed that timely payments influence your report most. Hence, repay your EMIs on time so that your score is not affected.

Become an Authorised User

As mentioned earlier, it is difficult to get an unsecured credit card for people with no prior credit history. However, that does not mean your chances of building a credit score from scratch end here.

You can still increase your score by becoming an authorized user. Here, you will be an additional cardholder for someone else’s account. The card will be under your name, but it will be linked to the primary card holder’s account.

Be extremely careful when you are an authorized user for someone because one slip can cause their credit score to dip down.

Take the Help of a Co-applicant or a Guarantor

If everything else fails, you can always turn to a guarantor or a co-applicant with a high credit score. A guarantor is an individual that promises to pay on behalf of the borrower if they default.

However, do not misuse this option. Make timely payments as failure to it will lead to a decrease in the guarantor’s credit score. So, avail this only if you can repay on time.


Apart from these points, you must remember that an exceptional credit report is not built in one day. It takes immense effort and time to work on developing a great one from scratch. These points are not quick fixes. So, continue putting in efforts, and be patient for amazing results!

Author Bio

Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India’s first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters, and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics, so email him your questions at

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