The economy has been eventually slowing down and savings are perpetually decreasing. Youngsters in India have been relying on online loan apps more.
One miss in your loan repayment history can leave a blot for the next 7 years. This way, the millennials will not be able to apportion credit to urgent needs. Maybe, the misappropriation of credit leaves borrowers and their guardians skeptical of the trend.
Therefore, youngsters are greatly discouraged to take credit and mismanage debt.
The CIBIL score is a consolidation of financial actions, statements & performance. A score directly affects the interest component on the principle sum. Your credit score is important to have your financial capabilities in order.
After school, college & vocational courses, when the young professionals enter the work market, they expect to allocate money to the safety & protection of family & themselves. Your insurance score is also influenced by your credit score and the ability to find a better job/apartment.
So, what is the guarantee that you manage debts well at such a young age? But what do you do when it’s your first credit experience. This is an interesting finding and a lot of individuals would like to know.
You don’t need to have a grand slammer but a consistent player. Youngsters take a special interest in managing their credit score & portfolio to ensure their borrowings are made easy.
Read More: Everything you want to know about a Credit Score
Let’s take the quick example of a friend who finished schooling from a premier school and then went into a reputed college for graduation, found a home, good job. Now was the time to open a bank account for corporate salary and then an application for a personal loan at a bank. And here the story took a major turn. The loan application was turned down saying there was no past history.
It may not sound believable however it doesn’t take too long to build a credit history. As a young child, it’s obvious that your credit score is still building.
How does a youngster plan their credit profile?
If planned right, you can build a good credit score in time to be eligible for a loan or credit line without engaging a co-signer.
If you’re a parent, you can support your child to have a legible credit score. How? Authorize them on your credit card, just after their graduation.
This way the positive behavior of the primary holder will benefit the authorized card user. Today, youngers are forward-looking & like to plan ahead of life. Taking interest in credit score is just another step towards the same purpose. They like to keep updated & apply their knowledge to make crucial decisions of life.
You better not be disheartened if you’re turned down for a credit proposition. This could be your current income or no past history of borrowing. It’s best to work on your credit history and get approved in the fastest possible way.
