Difficulty in availing best loan offers: If your credit score is zero, it means you do not have a credit history. With no credit history, banks have no data to assess your repayment behaviour and you will be profiled as a ‘risky’ prospect.
Interest rates will be higher: Following the general trend in advanced economies, Indian lenders are also on their way to factor in credit scores for setting interest rates.
No pre-approved loan and credit card offer: Many banks offer pre-approved loans and credit cards offers on the basis of your credit score. These offers are usually customised and have a much lower processing time than conventional loans. The absence of credit history will deprive you of availing such offers.
Approval of premium credit cards will be difficult: Credit cards have become an important financial tool today. Apart from providing you easy credit, they also come with attractive reward points program, discounts/cashback offers and EMI offers on credit card purchases.