Tips for Building Credit History And Improving Your Chances of Approval

credit card without income proof

Credit history plays an important role when securing a loan or a credit card. It represents your credit worthiness and the ability to repay the credit you are borrowing. A good CIBIL score enhances the chances of approval of a credit application, a credit score of 750 and above is considered a good score by most lenders. 

Credit scores are based on how long and how much credit you have, what type of credit you have, and, most importantly, how often you pay your bills.

Benefits of a Good Credit Score

1. Good chance of approval – A good CIBIL score indicates that you are not a defaulter and repay your bills on time. It increases your chances of getting a loan.

2. Low-interest rate– A good score enhances the credibility of getting a lower interest rate than other applicants, whether a home loan or a business loan.

3. Chances get better for pre-approved loans– If your application is in process and you have a good CIBIL score, the chances of getting a pre-approved loan are high.

4. Easy approval of premium credit cards– Before giving any premium credit card, companies evaluate the CIBIL score. They give preference to those applicants who have good credit scores.

5. Chances of higher credit card limit/loan amount- A good score eventually increases the possibility of getting a higher credit limit or loan amount. 

Tips to Improve Your Credit Score

  • Repayment on time– If you want a good credit score, all your installments must be made on time.
  • CIBIL Calculator– You should regularly check your score on this calculator; if the score exceeds 750, you are on a good track. 

  • Regular check-ups- You should check your score regularly to avoid further problems. And even give some time to review your score.

  • Avoid taking multiple loan applications – Always maintain the decorum of taking loans from a few select lenders, if possible. Avoid talking to various lenders or submitting your application to multiple lenders, as this will likely affect your score.
  • Increase in credit limit– Request for a higher credit limit is also viable for a good credit score. A good score can be achieved if the limit is higher and your expenditure is the same. If you own a credit card without income proof, like a student or add-on card, make sure the payment is made on time.

  • Inactive credit account– Never keep your credit account inactive; it benefits a good credit score. CIBIL is also affected if your account is inactive for an extended period. You can enjoy the benefits and other reward points gathered on your account. Credit card reward points are the icing on the cake. They give you more benefits financially.


It requires commitment over a long period of time to build and maintain a great CIBIL score that will open up financial options. Always make it a priority to keep a good credit score by paying your bills on time. With time and effort, you can build an excellent CIBIL record that correctly shows your reliability as a customer and gives you access to better loan terms.

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