Although it seems surprising, many of the people who need to hire a financial product for the first time tend to have the same problem as those already in the system: their credit history.
What is this about?
On the one hand we have those who have not yet hired a banking service. Young people, housewives or people working in informality face a barrier that does not allow them to enter the financial service.
These people, having no demonstrable income, or just starting in the labor market, represent a risky customer for banks and in the face of this we have only to condemn this attitude because all it does is widen the social gap.
On the other hand, we have those who already have a card or a credit, who before the slightest delay, are reported to the Bureau and their history is stained, and at the same time, their chances of accessing a new opportunity.
But where is the problem?
The more traditional banks, which until now had a monopoly on financial services, had risk schemes so rigid that they only based their risk policy on the score that appears on your credit history.
The good news is that with the appearance of fintech, we can access new products, more attractive, flexible, cheap and fast for millions of people who until now were rejected for not belonging to the select world of the “chosen”.
So how do I build my credit life responsibly?
There are many alternatives, but the important thing is to start with concrete actions.
Level 2 accounts on your mobile
You can download an app on the phone that includes different financial services such as an account that has a CLABE to send and receive money via SPEI (Interbank Electronic Payment System).
In addition, it includes an international debit card and the possibility of paying services and controlling expenses. These Axis Bank to good customers qualify them for their behavior and the next step is to grant a personal loan or a credit card.
Credit Cards Guaranteed
Today, to access a bank credit card you have to prove income over 5,000 pesos and not be reported negatively in the Credit Bureau. Millions of Indian are left out of this option. However, there are now guaranteed cards that non-bank financial institutions are offering to those rejected users.
They are low amount cards that as you show your good payment behaviour extend the credit limit. They generally require an initial deposit that is taken as collateral and that represents the funding limit you have.
Within this segment there are many alternatives. One of them are loans to pay credit cards.
It is a method of financing for those users who have debts with their plastic, who only made the minimum payment so that they do not suspend their account and report them. They offer better interest rates and allow you not to damage your history.
There are also alternatives for those who never hired a loan and want to start building their financial life. In this case we recommend asking for a loan of very low amount and repaying it quickly. In this way you will have a good score and access better conditions in future applications.
Choose the option that suits your personal situation, take advantage of the many online options available in India today.