CIBIL score: What are the consequences of having no credit history?

livemint.com:

Having no CIBIL score, or a credit file with limited credit history, can lead to a number of consequences. Banks usually subject applicants with no credit history to additional layer of scrutiny. Alternatively, they can even ask for additional documentation to evaluate their creditworthiness. This tends to make the application process lengthier and cumbersome.

So, it is vital to build a positive credit history over a period of time so that your financial standing can be improved and you can access favourable credit terms in the future.

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Procuring credit: Banks usually use credit scores to assess the creditworthiness of borrowers. If you have no credit score or history, lenders may consider you as a higher risk borrower since they have no past data to evaluate your creditworthiness. As a result, you may face challenges in obtaining credit cards, loans, or other forms of credit.

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Higher rates of interest: Even if you manage to secure credit with no credit score, lenders may offer you less favourable terms, such as higher interest rates or lower credit limits. This is because they may view you as a higher-risk borrower without a proven track record of managing credit responsibly.

Limited access to financial products: Beyond credit, having no credit score may also affect your ability to access other financial products and services, such as renting an apartment, getting a mobile phone contract, or even securing certain jobs. Many organisations use credit checks as part of their screening process.

Problem in building credit: If you don’t have any credit history, it can be