How To Build Your Credit Score from Scratch?

If your credit score is nil, you will need a strategic approach to building a good credit score. The CIBIL score is an important factor for availing credit from lenders. Moreover, you need time to build your credit score. Although borrowers with no credit score get financial loans, they often face multiple obstacles.

If you are interested in building your CIBIL score with zero credit history, there are several ways to do this. Some strategic methods of improving your credit score are explained in this blog. 

Importance of CIBIL Score

Having a good CIBIL score is required for getting financial loans. The major importance of improving your credit score are listed below:

  • Borrowers with good CIBIL score and long credit history quickly get financial products like credit cards.
  • The financial lenders look for the credit score of borrowers before providing credits like home loans, personal loans, consumer durable loans, etc.
  • Borrowers with good credit scores can negotiate and get loans at low-interest rates.

Ways to Build Your Credit Score

If you are a new borrower, then building a credit score might sound intimidating to you. However, there are multiple ways to build your credit score. Some of them are:

  1. Open a bank account

This is the primary option for showing your relationship with any financial institution. Furthermore, people with a salary account are generally preferred by the bank for offering a pre-approved credit card or loan. However, saving account holders also get these benefits based on their account balance. By getting a loan or credit card, borrowers can quickly build their CIBIL score.

  1. Take Micro Loans 

Taking microloans is the easiest way to build your credit score. Banks provide personal loans that amount as low as ? 5k to ? 20k. Moreover, these loans are availed instantly without any hassle. Therefore, with a low amount to repay, borrowers can quickly build their CIBIL score to start their credit journey with high credibility. 

  1. Get an Add For Credit Card

Getting your name as an add-on to the credit card owner of your family is one of the quickest ways to build your CIBIL score. In addition, with this method, the card?s payment history starts reflecting to your credit score. However, it is crucial to determine if the cardholder is diligent in paying their bills. 

You must also check for the reporting of the card?s transaction by CIBIL score login. You must remember that frequent checking of credit score does not affect your credit score. Therefore, you can quickly check your CIBIL score as often as you want.

  1. Get a Guarantor or Co-Applicant

Guarantors are the people who take guarantees for your loan repayment. They have an excellent CIBIL score. Therefore, when you apply for a loan through a guarantor or co-applicant, the bank quickly approves your application. However, you must choose this option when you are financially sound to repay the loan amount. Any default will result in your guarantor paying for your loan amount, and this will drastically reduce their CIBIL score.

  1. Go For a Term Loan

As a new borrower, you must consider selecting the longest tenure for your loan. By doing this, you will need to pay a low EMI, which will lead to minimum default chances. Moreover, with a long-term loan, you will have a more extended credit history. All these factors will enhance your CIBIL score. 


Building a good CIBIL score is not a complicated matter. New borrowers can easily do this by following certain steps for starting their credit journey. However, they must focus on paying the debt instalments on time. A high credit score is highly beneficial for borrowers because they can get a loan without facing many problems. Therefore, if you want to get your loan approved quickly, you must build a strong CIBIL score.