I have no credit history. How do I get started?

You may think you need extra money and you want to get the first loan, but you do not have a credit history. Or you just want to prepare your credit history for the future, which is an important strategic step for you.

You probably know you have the option of getting a loan from both a bank and a non-bank financial institution (IFN) in Romania. All of these are known as credit institutions. Whatever it is, before starting the current search for a suitable lending institution or finding information on their websites, please allow us to give you some details.

First of all, you should know that people who do not have a credit history are a category with a high risk of non-payment for most credit organizations. Banks and IFNs cannot be sure that these people are stable customers and that they deserve trust. Some lending institutions will refuse these clients – such an approach fits into their risk mitigation plan. But not all institutions of this. And this is good news.

How to Get the First Loan Without a Credit History?

How to Get the First Loan Without a Credit History

In order to get a first loan, in 99% of the cases, it is necessary to have a job and to receive a salary legally. This means that you must have an active bank account.

Start by analyzing the bank’s website where you opened your salary account and find out what loans you are proposing, what conditions you are offering and what criteria you should meet. If you can, call them or go to the branch to find out more. Your main goal right now is to find out if you have a real chance of getting a loan and if so, what kind of loan you could get. The basic criteria for obtaining a loan are age, salary, period spent at the current job, the value of the monthly expenses, the level of education, etc. Each credit institution has its own profile regarding the conditions that the clients must meet.

Compared to other financial organizations, the bank issuing your salary card already has you as a customer. Therefore, this institution has more confidence in you regarding the payment of a loan. If you do not find suitable credit offers in your bank’s portfolio or they are not attractive enough, try to analyze the offers of other credit organizations.

With no credit history, loan offers are not attractive

With no credit history, loan offers are not attractive

You have to understand that there probably won’t be too many lending institutions willing to give you a big loan from the beginning. So, it is better to start from a lower credit, to use and return it on time. Step by step, you will get much better credit offers, higher amounts and more favorable terms.

Also, you must consider, when choosing your credit institution, it must be a partner of the Credit Bureau (BC). This organization collects all your credit history data in one place and offers it to all the financial institutions you apply to get a new loan. Most banks and most IFNs are partners of the Credit Bureau. You can find here the list of partner financial institutions.

What you need to know before applying for a loan?

What you need to know before applying for a loan

If you plan ahead, which is much better, you should know how to choose your first loans. The credit score that calculated based on your credit history also depends on the type of loan you are accessing. There are several factors that influence this score, but now we will focus on one.

The score increases faster if you use long-term credit products. In other words, your score will probably be better in the next 6 months if you access a 12-month credit line and repay it regularly, than if you took a credit for a few months and returned it. So, if there is a credit line among the first credit offers, even if it seems less attractive at first glance, consider the idea of ​​accessing such a loan. It will be a good step in building your credit history. Read more about how to improve your score.

Credit score enhancement is an ongoing process that will bring you many advantageous loan offers in the future.

You can check your credit score for free and you will notice, hopefully, how it grows! See what your chances are of getting a credit based on your score.