Why it is difficult to get a personal loan with no credit history?

No matter how rightly prepared you are financially, life will throw something on you which will take you to financial crises and you will be finding a lot of answers to get immediate cash to deal with the ongoing situation. The very first thing which you would do is to seek help from friends and family and ask for their help financially. If you are lucky and your friends and family are generous, you will get a quick loan from them in no time and you have the option to pay them off with ease without paying them any interest.

If you do not find any right option from them, you will have to apply for a loan as last resort and hope to get it sanctioned within a particular deadline. The best loan for such situations is personal loans. You find a lender online and think of applying for one going to their branch keeping with you all the documents needed to get the loan done. Once you have applied for the loan, you then wait for their positive revert and hope to get the money credited to your account. Unfortunately, you get a call from the lender stating your loan is been rejected because you do not have a credit history and why would that be because you are applying for a loan for the first time in life. Now you restart your research and find lenders who would provide you personal loan with no cibil score but you have no luck in it and you are finding it really hard to get a loan with the current credit status of yours.

What would you do in such a situation? Is it really that hard to get a personal loan with no credit history? Today we are here to solve that dilemma for you,

Is credit history that important?

Yes, the credit history is important if you are trying to avail a loan or a financial product. A credit score is a graphical representation of your financial decisions in front of your future lenders. The loan lender will always check how your payment patterns were just to make sure before they can provide you a loan. If you do not have a credit history it is really hard for the lender to figure out if they can sanction you a loan or not.

What are my options here?

As we all say, there always is a place where we can start. You can apply for a small secured loan which will have minimal documentation in place and it will get you a loan with ease. For example, you can apply for a consumer durable loan like buying a television or a mobile phone and you can get a loan sanctioned within minutes of applying. In this process the documentation is minimal and you have the option to go for the products interest free! This will not only help you build a credit score but will also help you get a personal loan in the future if in need. This will not only help you start the credit history, but will also help you build a positive one if the payments are done on time.

Is there a deadline?

This is a tricky one. It definitely takes time to build your credit score but at least you can start. Something is better than nothing is the principle you should stick to and again make all the payments on time to build a healthy credit score.

Starting a credit line and a credit score is always tricky and you will have to be really couscous when it comes to building it. You can do it with ease if you have financial integrity with you.

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