Budget Homes

Virgin Debtor has very high credit score.

Who are virgin debtor? How and Why do they have high credit score?

You can be categorised as 'Virgin Debtor' if you have not got a loan so far in your life time.

The best credit score is do not have loans.

As long as you do not get a loan, you have a good credit score. Banks prefer to give loan to you than people already got loan(s).

There may be formulas prescribed by financial consultants and financial institutions which are hard to understand by a common man. For example:

Ways to improve your credit:

1) Immediately establish a budget in order to control your cash outflows.

2) Ensure that your income level permits an additional monthly outflow if you plan to take a loan.

3) Investigate your options in order to reduce your interest and other credit related costs, e.g., refinance an outstanding loan at fixed interest rates if there is a significant drop in interest rates or you discover a significantly cheaper option, etc. This will make your debt burden easier to manage.

4) Use some of your savings to repay some of your debt.

5) Always pay on time.

and more...

In reality a 'virgin debtors' is more valuable to creditors than who lost their virginity in terms of getting loan already (senior debtors).

What is your goal in life like owning a house or buying a car or some thing else? Get your first loan only to achieve your goal.

If your goal is owning a house, get loan for buying house. Till buying house, never get any other loan like two wheeler loan, car loan, buy products on installment, personal loan, etc.

There are chances you might be listed in CIBIL, even you clear your personal or car or two wheeler loans without defaulting repayments.

Keep your slate clean till you apply your first loan to realise your life dream. So when you apply for housing loan your previous record would be clean since you are a 'virgin debtor'.

Once you get a housing loan, you can play around for other loans. But keep your record clean till you apply for housing loan or loan to meet your dream.

In simple terms, keep yourself a virgin debtor till you apply for your first loan to realise your life dream.

Once you avail any type of loan, you will loose you title as 'Virgin Debtor'. Which means you have taken loans already.

As long as you are a virgin debtor you have very high credit score and very high chances of getting loan.