Banks unwilling to extend loan to new borrowers without credit history

New-to-credit customers should use secured credit cards to build up a track record, or turn to digital lenders and P2P platforms for loans

It’s a strange situation for young borrowers, or ones who have never borrowed. Banks are unwilling to extend a credit card or personal loan without a credit score. But unless they get access to these products, they cannot build a credit history. Such borrowers need to use innovative ways to build their credit track record, or borrow from alternative sources of credit.

According to a recent research report, EY FinTech Adoption Index 2017, bank deny loans chiefly on account of unavailable or incomplete credit scores. The population segment that is denied loans consists mainly of students, consumers seeking to consolidate