How I got 800 credit score without any loans

Credit Score becomes an important aspect when it comes to taking loans or getting a credit card. Today, we have the facility to buy or get something which we once had thought of buying few years down the line. A vehicle, a house, a property or the higher education, anything can be conquered by taking a loan today than tomorrow. With few percentages of interest which you have to give it to the bank, you have the access to that amount of money much earlier than today! These amounts are quite big. When we talk about small amounts gold loans and credit cards are perfect examples.

As your score is majorly the reflection of how credit healthy you are i.e. how responsible are you for paying the credits you have taken, would determine the worthiness. When one had not taken any credit say in terms of card or any type of loan they do not have any score and is called a No History customer. And suppose one has taken any type of credit and when he/she pays the EMIs on time, is when the good score is built. But, what if one does not want to take any loan but still wants a good score? What is a good score? Any score which is above 750 of the range of 300-900 is considered a good score.

Let’s understand what Sahil has to say in achieving 800 scores without taking any loan!

Hi, I am Sahil from Delhi. I wanted to buy a new house. When I went to axis bank and inquired for axis bank home loan, to my surprise they asked me to first build the credit score. I had never taken any loan in past, neither did I owe any credit card. I am with dad in his business and never had any chance to go and take any kind of credit. I went home back and researched. How can I build my score?

Let me share my secret of getting 810 scores without any loan. So I read all the parameters of how the score is calculated. The 5 parameters viz. Payment History, Amount Owed, Length of Credit History, New Credit and Types of Credit. which makes the score was my whole Idea about how I was supposed to go! So I first started with a credit mix. I applied for 2 types of credit card. Secured Credit Card and the normal Credit Card. After a few months or regular use and payments, I applied for one more card. I made sure that I do not overuse my credit limit. I never used my card for more than 35-40% of its total limit.

The credit score is then achieved and reflected in the bureau report after 6 months. I checked my free credit score to make sure that what I was doing was correct and error free. I had maintained a good record and kept working on the same lines. In less than expected time, I was rewarded with my own hard work and efforts. My score was 810 and too without taking any kind of loan!

With Sahil’s experience, one thing what we can take is always to try working on the major 5 parameters of the score which determines it. Try paying the amount which is due on time, take credit but repay, do not take undue advantage, do not close old accounts, keep applying for new credits but do not act credit healthy and lastly have a good mix of secured and unsecured credit with a fixed or revolving type of credit mix. A healthy score will be no away from you!

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