Loan without a credit history – big opportunity for the future!
Do you want to apply for a cash loan, but you’re worried that it will be refused due to your lack of credit history? This article will help you to build your creditworthiness.
These days over 50% of adults have a financial obligation directly associated with a cash loan or other form of a loan. Those persons can easily apply for subsequent obligations, of course provided that their previous repayments have been made on time. Nevertheless, the problem arises when the applicant does not have any credit history. Why is this happening?
Lack of credit history – how this affects the assessment of our creditworthiness in the bank?
Bank representatives rarely grant loans to people, who have not yet entered into certain financial obligations (such as repayment of loan, loan installments or purchase in installments). This results from the fact that they don’t have any evidence concerning credibility of the client, therefore the granting of cash loan to such client will be burdened by a significant risk for the bank. Most often, the above-mentioned problem concerns young people, who are just entering adulthood and want to start a life on their own. However, it should be remembered that the lack of any credit history is definitely better than the history in which there’s evidence of delays in repayment of loan installments or, what is worse, the presence in the national register of debtors. Lack of the credit history is a good start to build a flawless creditworthiness. Nevertheless, it’s important to remember about the regular and timely repayment of the debt incurred in the future, because this will constitute the justification for the approval of subsequent loan application.
Lack of credit history – suggestions how to build a good creditworthiness for the bank
If you’re thinking about taking a cash loan for the specific purpose, start creating your credit history today. Below we have prepared a few methods for building a good creditworthiness.
Firstly: Decide to purchase electronic equipment in installments. It’s a good way to combine business with pleasure. Maybe you need a new fridge or maybe you want to make yourself a gift and buy a phone that you’ve always dreamed of? However, it’s necessary to remember that if you choose this form of purchase, then you will have to make all payments on time – from the first installment to the last installment!
Secondly: Take a small loan. Take a small debt, which you will be able to repay on time without the slightest problem and which won’t affect your on-going expenses. Such additional amount of money can be spend on the purchase of electronic equipment, small renovation or even short vacation.
Thirdly: Use a credit card. Buy something more expensive and pay for it in installments. However, you need to remember that repayments should be made on time, because even small delays may affect the assessment of your credibility during consideration of application for a future cash loan.