When you are a student, no matter an undergrad, a post-grad, or a research scholar, life is much easier. Your parents give you pocket money, your expenses are lower, and life is simpler in general. But then you graduate and step into the real world. This world is much more complicated that the one you had been living in till now. This world, requires you to grow up and get a grip on your life. You get a job and are in charge of your finances. Parents still do help you out but in the larger scheme of things, you are actually on your own. Few months into the job, one day you realize that it’s time to finally be an adult and you start thinking about buying a vehicle or a house. That’s what adults do, own things, don’t they? But, how will you pay for these things? You have obviously heard about the personal loans one can take out for these purposes, but which bank will give you a loan? This is just your first job and you have little to no credit history. How do you convince a bank of your ability to repay the loan? Well, if this has been your life’s trajectory, you have landed at just the right place. Read on to know how to qualify for a personal loan with your first job.

Repay your Education Loan

If you took out a loan to fund your higher education, make sure to repay it on time after starting your job. One of the best ways to build your credit score is to repay any existing loans timely. Banks send all the details of your credit-related transactions to CIBIL, so any missed installment has the ability to bring down your credit score that will in turn decrease the possibility of you getting a personal loan.

Sometimes Waiting can be Good

Working in a big organization doesn’t only guarantee you an opportunity of career growth and more money but also makes it easier for you to get a personal loan. When a bank sees that you work in a prestigious company at a high pay scale, you appear to them as more creditworthy. Getting a big salary makes you more likely to repay the loan in time. But, not all of us manage to get high-paying jobs right after graduation. Under such circumstances it is best to wait for some time and apply for a loan when there is a hike in your salary.

Take help from a Guarantor

With your first job, you can’t expect to have much of a good credit history to be considered creditworthy by a bank. Taking help of a guarantor can make it possible for you to get that personal loan you need. This person can even be one of your family members with a robust CIBIL score. The guarantor’s responsibility is to make sure that the loan is repaid. If you fail to repay the loan, this loan guarantor will be liable for your loan.

Get a Credit Card

One of the largest misconceptions that go along with credit cards is that they inevitably make individuals land in debt. You might have heard experiences of people who were careless with their credit cards but that doesn’t make credit cards evil or dubious liabilities. The first step to build a credit score is to engage in a credit-related transaction. So, you can start by getting a credit card and using it mindfully. Pay your credit card bills on time and never just make the minimum payment. Availing multiple credit cards make you seem credit-hungry which then makes banks refrain from giving you a loan.

What to Do When Waiting for an Improvement in Credit Score isn’t an Option?

If there is an urgent need for a small personal loan and waiting for your credit history to improve your CIBIL Score is not a viable option, you can use other alternatives. One of such options is getting a loan against your salary from FlexSalary. You can avail a loan up to 2 Lakhs through this online forum which provides instant salary advances. Any salaried employee, regardless of their credit score situation, can avail the early salary product offered by FlexSalary. To know more about this, click here.

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