If the meter of Cibil Score is not activated, then what to do now? Understand how it will cross 750

Usually, people's CIBIL score is in the low or middle range. But you would have rarely heard that someone's CIBIL score meter has never been activated. Know here when this happens and how a person can increase his score in such a situation.

Banks check Cibil Score to take a loan. Usually people's CIBIL score is in low or middle range. But you would have rarely heard that someone's CIBIL score meter has never been activated. But it happens. This is called Minus Cibil Score. In common language, people also call it Zero CIBIL Score. Minus CIBIL score occurs when a person has never taken any loan from the bank nor has ever used a credit card etc. In such a situation, the bank does not have any history regarding the customer's repayment. Due to this, their credit score is in minus.

What is the loss if one has a minus CIBIL score?

Now the question is, what loss does one suffer if one has a minus CIBIL score? In this case, a bank official says that the reliability of a customer is judged by the CIBIL score. When there is no CIBIL score history, how will the bank know whether this customer will repay the loan on time or not. The bank is in a dilemma whether to trust the customer or not. Due to this, banks hesitate to give a loan to the person or sometimes they can refuse.

Is there no possibility of getting a loan?

It is not that you cannot get a loan if you have a minus CIBIL score. In such a situation, banks test your reliability on other parameters. His source of income, his educational qualification etc. are looked at. For example, if a person is a doctor or CA or holds a high position, then there is a high possibility of getting a loan even if he does not have a credit history because his income is quite good.

But if you do not have such a high-ranking job, then you can assure the bank by giving bank statements of a few years to show your better financial condition. Apart from this, you can show all your bills which you have been paying regularly till now as proof. If you assure the bank, then you can get a loan even with a minus CIBIL score. But if the bank is not satisfied, it can also refuse.

How to increase CIBIL score if the bank does not give loan?

It is also important to understand that if the bank refuses to give you a loan due to a minus CIBIL score, then how to start the CIBIL score meter and how to increase it. In this situation, you have two options to increase your credit score. First- Either you take a credit card from the bank and start using it and make the payment on time. This will start your credit in the banking system and your CIBIL score will be updated in two or three weeks. The second way is that you open two small FDs of Rs 10,000 each in the bank. After opening the FD, take a loan against it under the overdraft facility. As soon as you withdraw money under overdraft on your FD, your loan will start and soon your credit score will increase.