I am 45 and so far have never had a credit card or taken a loan. Does this mean I have no credit score for a lender to assess my repayment capability? I am thinking of a loan for a house?
Naveen Gogia, Noida
Credit score is one of the ways for a lender to assess your loan repayment capability. However, everyone has to make a start somewhere to have a credit score. In the absence of a relevant credit history, banks rely on other documents such as your income tax returns, bank statements and employment status. The information from all these sources indicates your financial condition, which is the basis for a lender to extend a loan to you. You should not be worried about being denied a loan because you do not have a credit history, because if you have shown financial prudence so far, it will not impact your case when you seek a loan.
