Challenges you have to face without a credit history

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Credit Card Applications » Research » Guides » Building Credit History » Challenges you have to face without a credit history

Challenges you have to face without a credit history

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A man without a credit history in America is like a man without a job in a big city. You may have a lot of cash, but without a credit history you would still have to ask other people for help when you need to get certain things done. We shall discuss just what those things are in the following passages,

  • The first problem that you would face would be that you cannot open credit accounts in any bank with ease. You would have to furnish a lot of proof that you are capable of repaying your outstanding balance. Besides, even if you do get an account you will not get good terms and conditions to go with it.
  • The second issue is that you would not even get a mobile phone connection. Every service provider will require you to have a social security number in order to provide you a number. And secondly they will require you to have a credit history in order to ensure that you are capable of making monthly payments. If you do not have a credit history, they will charge you an enormous amount as initial deposit in order to have a guarantee that you will pay up.
  • The third issue is that you cannot get loans for anything. This can include a car, a house or even a student loan. There are very few banks that provide unsecured loans to people. And even these banks would require some sort of collateral. And the terms and conditions would be very stringent. You really cannot make any sort of beneficial transaction with the money derived from such loans.
  • Getting a room or apartment for yourself can also be an issue when you do not have a credit history. When you do want to rent a room in a good neighborhood, you will have to go asking around for help from friends and family. This is because they have to stand as guarantor on your behalf. It can get really frustrating that you will need someone else`s help even though you have the money to make the payments.

Life without a credit history can get really frustrating in the United States of America. Make sure you start building your credit history as soon as possible. The sooner you start, the easier it will be for you to build your credit history without putting yourself in financial risk.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products’ Terms & Conditions on the issuing banks' websites.
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