Build up credit score from scratch

[rooneyforggmu]

Hi,
I wanted to ask if I do not have any loans or credit cards, and do not have my credit report generated yet, is Paytm Postpaid a good option to build my credit history. Given I would make small transactions and pay my bills on time. Just wanted to check if it is a viable alternative to credit cards against FD. Any help is appreciated.

 

[rooneyforggmu]

No, I used to think the same. I had Paytm postpaid.

It shows as a CDL/personal loan in Cibil. I had Paytm postpaid, that is why my Cibil is below 750 now. Getting Paytm postpaid won't help in increasing Cibil above 750.

Got for a secured CC, i.e against an FD. It will help boost your Cibil above 750 in the long run. Other than that, Paytm postpaid charges extra charges for no reason.

Thanks for your response. The point is I don't have a credit score at all. Hence, was checking. I guess a decent below 750 score might help in getting unsecured cards later, right?

 

[rooneyforggmu]

Sorry if I am not clear. The aim is to atleast build a cibil score (non-existent currently) by means of Paytm Postpaid and then try my luck with unsecured CCs maybe 6 months down the line.

 

[cardgod23]

You can apply for a HDFC money back+ card with a 25k limit, without any initial credit score. I would also recommend the One Card, you can get a secured card with an FD of 5k.

 

[ParthB]

Hi,
I wanted to ask if I do not have any loans or credit cards, and do not have my credit report generated yet, is Paytm Postpaid a good option to build my credit history. Given I would make small transactions and pay my bills on time. Just wanted to check if it is a viable alternative to credit cards against FD. Any help is appreciated.

Going for a FD based CC would be a better choice IMO. You can get the OneCard with just 2k fd. Or even the Paisabazaar StepUp CC isn't a bad option. I had OneCard for 11 months or so. Then I closed the fd. My card got canceled automatically. Applied for SBI Cashback, got it approved in 5 minutes with 20K limit (No KYC, No Income Proof, nothing..).

 

[U_Utkrsh]

Hi,
I wanted to ask if I do not have any loans or credit cards, and do not have my credit report generated yet, is Paytm Postpaid a good option to build my credit history. Given I would make small transactions and pay my bills on time. Just wanted to check if it is a viable alternative to credit cards against FD. Any help is appreciated.

As highlighted by fellow members, it’s better to take an unsecured/FD backed card rather than any credit line (especially in form loans). I would go ahead and suggest you to rather stay away from paytm as it’s not categorised under account type. My advice would be that you can start with Onecard but be aware that in future they won’t issue you an unsecured card even after a good score.

 

[srikant]

Hi,
I wanted to ask if I do not have any loans or credit cards, and do not have my credit report generated yet, is Paytm Postpaid a good option to build my credit history. Given I would make small transactions and pay my bills on time. Just wanted to check if it is a viable alternative to credit cards against FD. Any help is appreciated.

Simply apply for a credit card with whichever bank you have a savings (operative) account in, assuming it issues them. You CAN get an unsecured credit card without any history -- you need to start somewhere, after all, can't be in a catch-22!

Provide income proof if asked for. The limit given might be relatively low, but it'll still help you build credit score immensely as it ages -- assuming you pay everything on time.

Over time you should get limit increased or get another card, and so on.

Limit increases are good in that you don't get your average credit age dragged down. Periodically ask for them (if the bank doesn't offer them by itself) -- say every time your ITR is processed. This is one thing I'm learning a bit late. Your older accounts ought not to be closed, so try to get a substantial limit on them, which can let you dump newer accounts when your fees / minimum spend for waiver (or even general headache of juggling multiple payments) becomes harder.

New cards may add more overall limit to your credit line, and having more accounts also helps address the "credit mix" component of the credit score -- up to a point.

 

[KingAAR]

there used to be slice which was a very good option but you r late for that

better , activate Freecharge pay later and it works


DM me for referral

 

[Cosmicgaze]

try one card they may issue you an unsecured card with a low limit or offer you a fixed deposit backed card. Take it for whatever amount you can afford.

Paytm is also fine but if you can go with secured cards that’s even more better.

I had two cards till 2015 &2016 I was a student defaulted one of the cards due to health issues but repaid the dues in 2 weeks and the card was closed by the bank. Another card out of fear of same repeating I stopped using and eventually bank closed it. My score was about under 700 I assume. When Paytm postpaid came I took it,it was under Paytm and they weren’t exporting payments just defaults. Then clix finance came and they were reporting payment history etc but under consumer loan my score did go upto 760 and then they changed partners to adity Birla which got marked as loan others. Just over 2 1/2 years and my score is 790+ without any cc or other loans. It’s also funny that the card which I defaulted as even tho it’s marked close keeps showing payment history till date and even gets reported and certified maybe that’s improving my score? Anyways I applied and got two pre approved cards without income proof just the basic kyc and good limits.
So if you wish to go with Paytm only then it’s fine.

I say secured card is better as you can certainly build credit age, like I guess the card account should be valid for 5 years before expiry. Paytm validity would either be 1 or 2 years so not so great with credit age.
Secondly Paytm easily gives out to most so banks would think maybe this person isn’t really proven. Credit cards seem more trustable to the banks (just my thinking).
I know some with bad credit scores that took secured cards and now have a good number of unsecured cards, and some who got pre approved offers just 2-3 months with secured cards.

 

[RkrRkr is verified member.]

try one card they may issue you an unsecured card with a low limit or offer you a fixed deposit backed card. Take it for whatever amount you can afford.

Paytm is also fine but if you can go with secured cards that’s even more better.

I had two cards till 2015 &2016 I was a student defaulted one of the cards due to health issues but repaid the dues in 2 weeks and the card was closed by the bank. Another card out of fear of same repeating I stopped using and eventually bank closed it. My score was about under 700 I assume. When Paytm postpaid came I took it,it was under Paytm and they weren’t exporting payments just defaults. Then clix finance came and they were reporting payment history etc but under consumer loan my score did go upto 760 and then they changed partners to adity Birla which got marked as loan others. Just over 2 1/2 years and my score is 790+ without any cc or other loans. It’s also funny that the card which I defaulted as even tho it’s marked close keeps showing payment history till date and even gets reported and certified maybe that’s improving my score? Anyways I applied and got two pre approved cards without income proof just the basic kyc and good limits.
So if you wish to go with Paytm only then it’s fine.

Good info Bro for Beginers..