How to Build your zero credit score?

How to Build your zero credit score?


       Based on an individual’s credit information, the credit information bureaus determine the credit rating. A credit score of zero means that a person’s credit is zero if the history is too young. A zero credit score is the unavailability of the credit history determining the credit rating. A zero credit score is not bad as it may take some period to build up the credit history. It is essential to know How to Build your zero credit score.

Credit information companies (CICs), also known as credit bureaus, are essential players in the financial industry. They serve as go-betweens, in obtaining and organizing credit-related data for people and companies. Their function is to provide information that banks, mortgage lenders, credit card issuers, and other financial organizations need to make loan choices. The list of 4 credit bureaus in India includes TransUnion CIBIL, Equifax, Experian, and CRIF Highmark.

A credit score is declared by these four credit bureaus by reviewing a person’s personal loan repayment history. Online loan apps like Zap Money offer instant personal loans for people with excellent credit scores.


   The credit score is zero or NA (not applicable) if the credit history is six months old. This is because there is not enough information available to the reporting agency to calculate the credit history. If the person has recently obtained a personal loan, credit card, or other type of credit their score may be zero. There are ways to build up the credit score from zero to 750 which is considered a good credit score. Unless the credit score is negative there is nothing to worry about,  rather wait patiently to build up the score.


A bad or zero credit score can cause a lot of disadvantages as follows:

Credit card/ Loan rejection:

Financial companies and banks prefer to avoid risks by lending money to borrowers or businesses with low credit scores. This results in the rejection of a loan or credit card applied by borrowers.

Increase in interest rates:

Having a low/ no credit score indicates the ability to pay back the credit. Financial organizations are cautious about providing loans in such cases. Therefore higher interest rates are applied to the borrower as compensation.

Entrepreneurial problems:

Entrepreneurs who wish to begin a business with zero credit score will face difficulties in acquiring a loan, resulting in the risk of the new company’s plans and strategy.

Problems in building credit:

Borrowers with zero credit score may face difficulties and it can be challenging to build their credit score. It becomes necessary for the borrowers to consider other credit-building choices, that are secured with specific credit cards which becomes a hassle.

Rental issues:

Renting property becomes a problem for people with no credit score as landlords might verify credit scores before renting. People may be asked to pay a large security deposit to offset the dangers associated with low/ no credit score.


Here are a few ways to develop the credit score history from scratch:

Review your CIBIL credit score:

Information mentioned in the credit report regarding default or late payments should be reviewed regularly. Any problems mentioned in the report can be fixed immediately after contacting the bank. 

Avoid applying for multiple loans:

Applying for multiple loans may convey the appearance that you need credit and are unable to manage your finances with your income. 

Repay debts on time:

Regular repayment on loans and credit cards will help to build the credit score.

Prefer for small loans:

 Smaller loans typically have shorter terms for repayment and help to improve the credit score and history when paid on time.


  1. Improves Loan Eligibility: A good credit score will increase the chances of loan approval. Financial institutions and banks consider individuals as low-risk borrowers who have a credit score of 750+.
  2. Lower Interest rates: Credit scores directly influence the interest rate as a higher credit score lowers the interest rate which helps to save the amount during the repayment tenure period. 
  3. Faster Loan approval: Quick approval of loans to borrowers with good credit scores is advantageous. Online apps like Zap Money provide instant personal loans, especially during time-sensitive circumstances. 
  4. Better financial opportunities:  A good credit score opens up opportunities for individuals in the field of business when compared to others who have low credit scores. 
  5. Higher credit limits: Higher credit limits on loans and credit cards may be extended by the lenders when the credit score is good, which indicates responsible credit behavior. This may provide additional purchasing power and financial flexibility.

Also Read :

Get 3000 quick personal loan from Zap Money


Is a Zero credit score good or bad?

A zero credit score is neutral which means absence of credit history. There is no record of repaying the credit and lenders lack enough data to calculate the credit score. 

How do you fix a zero credit score?

A zero credit score can be increased to 750+ by active use and repaying of credits to build up the credit history.

Is it possible to avail of a loan if the credit score is zero? 

It is not entirely impossible to get a loan with a zero credit score but it will be a difficult process. It includes availing of a secured loan and repaying it on time patiently to build a credit history.

Is a zero credit history the same as a bad credit score?

No, a zero credit history is different from a bad credit score as a bad credit score indicates a history of using credit but having missed payments that lowered the credit score.

Hariharan Ravichandran

Understanding the ever-changing environment of money may be a difficult experience.I'm Hariharan, a seasoned finance explorer and blogger. I am right there with you, beginning on this journey of financial enlightenment as a fellow traveler.


The ZapMoney app makes personal finance easy, accessible, and affordable. The App is available on Google Play Store and App Store for download, allowing you to sign up and access easy personal loans. ZapMoney is powered by Monexo Fintech Private Limited which is a registered NBFC-P2P.
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