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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

Topics
Bank Loans

Priyadarshini Maji & Sanjay Kumar Singh 



bank loans, credit card
Photo: Shutterstock

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.

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First Published: Thu, March 29 2018. 06:30 IST

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