Credit rating is one such parameter which all banks will check once an application for loan is logged in, namely home loan, car loan, personal loan and even credit card. They will check the CIBIL record, a history of all the credit facility one has taken and the mode and punctuality of payments.
while CIBIL score is the one important parameter for disbursing a loan, for individuals who have never availed a loan, CIBIL will be mostly negative.( CIBIL normally ranges from 300-900 and -1 for no credit history).
For people coming under the above category, they can take a credit card against a Fixed Deposit which is offered by most banks and can start using and repaying. as the process is started, the score starts moving gradually and after almost 6-7 months, it gives a good result.
For someone, who is already a loan customer, one should not keep applying for credit cards in all banks as these shows the hunger for more credit.
Paying bills on time and keeping credit balances low are other factors which can improve the score