Can I get a credit card if I have never taken out a loan?

The three-digit number that represents your credit score is between 300 and 900. It has a profound impact on your capacity to establish a solid financial life. Your credit report, which lenders analyze to decide how quickly and at what interest rate you can acquire a loan, is the source of your score.

Know how to get a credit card with low credit score

You won't have a credit score or report if you have never taken out a loan. This poses a special challenge: some lenders won't provide you with a credit card or loan since they can't use your past payment history to make a lending decision. While deciding whether to grant a loan, lenders frequently consult your credit report. Additionally, your credit score acts as a tool for one to understand whether it suits the needs of a lender.

To establish a credit history and, consequently, a credit score, there are three easy methods:

Purchase a smartphone or other consumer durable on a pay-it-forward basis. Currently, you are provided with what is referred to as a consumer durable loan when you enter a store and choose to buy a smartphone on a pay-it-forward basis. Many people who are taking out loans for the first time are offered this. Given that your income is consistent, the bank that handles your salary account ought to be open to granting you an initial credit card with a modest credit limit (about Rs. 15,000 to 20,000).

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Apply for a secured credit card. Some banks will grant these if you make a fixed deposit equal to the amount of the credit line that is being offered. For instance, you get a credit card with a limit of Rs. 20,000 after making a deposit. Not only does this safeguard the bank against default, but it also allows you to establish your credit history. Credit bureaus like Experian and CIBIL will be allowed to issue you a credit score after you have been a customer for six months.