Credit score 'negative 1' isn't a crisis: How to improve your ranking

First-time borrowers can build a good credit score by taking steps such as paying bills on time and limiting card usage

You have landed your first job, opened a salary account and applied for a small personal loan or credit card for the first time. But then you get a message that your application has been rejected, not because of poor financial history, but because you have a credit score of -1.

 

It is a common experience for first-time borrowers in India. Many are unaware that the credit system doesn't just reject those with bad repayment records, it also excludes those with no records at all.

What is a credit score? 

A credit score is a three-digit number, typically ranging from 300 to 900, that reflects your creditworthiness, or how likely you are to repay borrowed money on time. In India, scores are issued by credit bureaus CIBIL, Experian, CRIF High Mark and Equifax based on your loan and credit card usage.

 

 

A score above 750 is considered strong and leads to easier access to credit at better interest rates. But not having a score, shown as -1, can shut the door before you even step in.

 

“Your credit score is like your financial reputation,” says Manish Shara, co-founder and chief executive officer of ZET, a credit score-building platform. “It’s not just about borrowing, it can influence everything from your loan eligibility to the cost of financing, and in some cases, even your job or housing prospects.”

What does a-1 score really mean?

 

Contrary to what it may seem, a-1 doesn’t indicate default, mismanagement, or any wrongdoing. It simply means that there isn’t enough information in your credit report for the bureau to assign a score.

 

“You are what we call credit invisible,” says Shara. “It’s common among gig workers, small business owners, and fresh graduates, people who’ve never used formal credit products.”

 

According to Shara, over 400 million Indian adults are in this category. “They’re denied credit not because of bad behaviour, but because the system doesn't know them at all.”

 

How to go from -1 to a valid credit score

 

Building a credit score from scratch doesn’t require a high salary or extensive financial experience. Here are the tips by Shara on how to begin:

 

Start with a secured credit card: These cards are backed by a fixed deposit, don’t need prior credit history, and are ideal for new earners, freelancers or students.

 

Use the card wisely: Make small, regular purchases, groceries, fuel, subscriptions and aim to keep utilisation below 30 per cent of your limit.

 

Always repay on time: Timely full payments are the most powerful input in building your credit profile.

 

Track your score: Monitor your progress every month on platforms like CIBIL, Experian, or Equifax. A visible score usually appears within 3 to 6 months of consistent usage.

 

“You’re not fixing a problem, you’re giving the system a reason to recognise you,” Shara says.

Final word

 

With financial discipline and a strategy, you can go from being credit invisible to eligible.

 

As Shara puts it: “Credit access shouldn’t depend on where you come from. It should depend on whether you’ve been given the chance to participate. And building your score is that first step.”