No credit history is a bad predicament to be in

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » No credit history is a bad predicament to be in

No credit history is a bad predicament to be in

By
Add to Favorites:
Your credit history is a record of all the financial transactions that you have made ever since you started having a social security number. All your transactions will be linked to your SSN from the start. This record is maintained by the credit bureaus which give you a credit score which is an indicator of your financial credibility. For people who are new to the country or for people who have been out of the country for a couple of years or most probably for kids just graduating out of school, building a credit history is a big issue. The faster one gets onto it the better. In order to have a credit history, the first step you need to take is to open couple of bank accounts. Once you open bank accounts, you start legitimizing your financial transactions. Every time you swipe your card, you make a record with the bank. But your credit score will really not be affected till you apply for a credit card. You can apply for one after you have been with a bank for a sufficient period of time. if you fail with that, you can try getting someone to co-sign for your credit account. The next step to take is to start making transactions with that card. The more you swipe, the faster your credit record will grow. And make sure that you are capable of paying for your purchases before you go around making them in the first place. Defaulting on a payment is even worse than not having a credit history. It can permanently damage your reputation with all financial institutions and make it very difficult for you to get credit in the future. After you do all this, the next step would be to go about taking loans or mortgages to pay for essentials like a car or a home. Make sure you have the ability to pay it off before going for a loan. Always make sure you pay your installments on time every time. Another thing to think about while taking a loan is that it could reduce the taxes that you pay on your income since all the payments you make towards a loan are tax free. Having a bad credit history or no credit history is a very bad situation to be in. try to follow the steps as described above in order to set things right. With no credit history, you cannot own a credit card, you cannot get a loan, you cannot even get a loan for a vehicle or a home. Even getting an educational loan can get problematic when you don`t have a credit history. You need to be aware that your child`s education can suffer because of a few financial blunders on your side. Take the right steps now and you can ensure that you have secured your child`s future. Building on your credit record must be your top priority. If you do not have one, this is the time to start and if you have a bad credit record, it is never too late to set it right.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

5 Reasons to Get the Capital One Venture Miles Rewards Card

5 Reasons to Get the Capital One Venture Miles Rewards Card

By Herbert Moore, Posted: January 18, 2017

If you’re looking for a great travel rewards credit card—one that offers unlimited earning opportunities, flexible redemption, and lots of perks—look no further. This card from Capital One has you covered. Continue reading
Credit Card Tips For Holiday Shopping 2016

Credit Card Tips For Holiday Shopping 2016

By Herbert Moore, Posted: November 23, 2016

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household ... Continue reading
Credit Cards to Save More on Holiday Shopping

Credit Cards to Save More on Holiday Shopping

By Herbert Moore, Posted: November 22, 2016

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door ... Continue reading