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Getting A Credit Card Despite Having No Credit History

Build a Credit History The Easy Way

It’s a classic catch-22 situation, you want a credit card, but are denied one because you have no credit history. Judging from this email we received from Mohit, that seems to be the exact situation he is facing:


I have applied almost on every bank for credit card bt the disapprove it i dont know why

never had loan in the past , no credits taken ever

can you help me for the same – Mohit


Hi Mohit! There’s a few issues happening here. The underlying issue I suspect is the fact you have light or no credit history. What this means is when a potential credit card issuer pulls your CIBIL report they do not find much – positive or negative. They need information to make a decision on whether to lend to you or not, and chances are they are not finding that information.

This is a common issue for many but fortunately there is an easy solution to start building credit. Find a bank who offers a Secured Credit Card. This means the card is backed by your own deposit in the bank, however it is treated just like any other credit card. You have a bill and must pay on time, it also charges interest. There is no restriction on these cards, anyone can get one. Use it frequently for your daily life purchases and pay your bill in full each month. This will create a positive repayment history over time and show you to be responsible to future lenders. Your CIBIL score will go up as will your approval prospects.

One other point to consider — you say you applied for many cards and all were declined. This hurts your CIBIL score as well. Each time you apply for a card a bank does a ‘hard inquiry’ on your CIBIL file, and if you have too many of them on your file, you will lose points as you seem too desperate for credit. It looks irresponsible.

The good news is, these hard inquiries only impact your score temporarily, and lose their impact on your score after one year. Just focus on steady payments with a secured credit card and soon enough you will graduate to a traditional credit card.


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