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Your credit history plays a very crucial role in determining your financial wellbeing. For people who have a good credit history, getting loans of any type or procuring credit cards from any bank will not prove to be a tough task. However, for people with no credit history, getting credit cards or loans can be a herculean task. But how can you establish credit history if no one is willing to lend you the money? The good news is that there are other options that can be taken into consideration in such situations. Let us take a look at a few of them.
In the absence of FICO scores, your employment history plays a very important role. Lenders will scrutinize this document to see if you are credit worthy. If your employment history is shaky and shows you switching jobs at regular intervals, lenders will perceive it to be a sign of inconsistency. However, if you are able to hold on to your job for a long span of time, then, the chances of your getting the credit card or loan approved are high.
Ensure you have a good standing with the banks if you have no credit history. Your good bank account history can prove to be very useful in getting your loan or credit card application approved. If you have a lot of check returns in your account or if you don't have any balance at all, then, you may not stand the chances of getting what you need. However, if your account history is clear of all these blemishes, then no lender can resist from lending you the money you need.
Whoever said that utility bills were not of great importance should think again! For people who have no credit history, these bills play a significant role. Though having these bills in your name will not impact your credit score in any way, it will do a world of good to people who don't have credit history but want a credit card or loan.
Just as in the case of employment history, residence history also has an important role to play. If you keep switching residences often, then, lenders will not consider yourself to be credit worthy. However, if you have been staying in the same place for a long time, it builds your chances. Also, if you have your own residence, then, the chances of getting approval increase multifold.