People with No Credit History More Advantageous than People with Bad Credit History

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 » People with No Credit History More Advantageous than People with Bad Credit History

People with No Credit History More Advantageous than People with Bad Credit History

By
Add to Favorites:
You need money or a car badly but you have no credit history. You don`t even know what it means and how it affects your credit score. You are new to these things actually. But don`t despair. There are so many who too have no idea what these credit terms are all about. Credit history is a report by credit bureaus which are based on the compiled data sent by credit card companies, lenders and insurance brokers. It shows the entries of the loans and credits you have taken in for the previous years. It also shows default accounts, unpaid balances and even red marks, such as bankruptcy and court settlements. This is a very critical aspect of your credit situation. It requires you to be diligent and attentive to the entries so you can dispute on the errors and repair the inconsistencies. You are also given the opportunity to check your reports annually from the three main credit bureaus - Equifax, Experian and TransUnion. Don`t worry about being charged. The government has already made it into a law to allow consumers to have an annual review of their own credit reports. Credit score on the other hand is a three figure score that are calculated based on the secret formulas of score providers such as FICO and Vantage Score. These numbers are calculated based on weights. For FICO for instance, credit utilization consists of 30% of the score. You need to understand the weights and components of the scoring system used to determine your score. At least know your FICO score, which has a range of 300 to 850 - with 850 being the perfect score. Scores can be obtained after paying for them. Though the government allows free credit reports, it is not applied by lenders. Because of the numerous scoring system used in the country, free credit score can be impossible. However, you can only get access to your free credit scores if you get an "adverse action". That is being rejected in a loan or credit card application or insurance policy. These lenders and insurance companies have to present to you the scores that they have based upon for their decision. If you see something wrong, it`s either the credit report the scores are computed on is erroneous or these lenders are just too careful about approving you. Now you know the two credit aspects affecting your credit life, you may be asking, what is you have no credit history? What are your chances of being approved if lenders are so strict about credit history backgrounds? Again, do not despair. There are solutions for you. Just take note that you have an advantage over those with a bad credit history. Available solutions for you can be Bad Credit Secured Credit Cards and the unsecured type. There are many banks in America that will provide you this. Some requires you to pay a one time application fee, meaning no annual fees to be paid. Since this is your first credit card, you have to learn further than just the terms. Learn to manage your credit by paying on time, prioritizing needs and getting a credit only when needed.

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

Related Research:

How the Fed Rate Rise Impacts Credit Cards

How the Fed Rate Rise Impacts Credit Cards

By Credit-Land, Posted: May 25, 2017

Recently, the Federal Reserve hiked its benchmark rate by a quarter percentage point, as a result, you could see a rise of the interest rates on your credit cards by 0.25%. That was the first hike of the key rate in 2017 and the Fed ... Continue reading
Top 5 Credit Card Offers For Those With Excellent Credit

Top 5 Credit Card Offers For Those With Excellent Credit

By Credit-Land, Posted: May 25, 2017

Do you have excellent credit? If so, banks are actively looking to win you as a new credit card customer by offering some unprecedented deals. Although banks have been more careful about acquiring customers with questionable credit ... Continue reading
Interest Free Credit Cards: Pay No Interest Until 2019

Interest Free Credit Cards: Pay No Interest Until 2019

By Credit-Land, Posted: May 23, 2017

Carrying a balance on a credit card is wasting your money on interest fees. It is easy to avoid interest payments on purchase transactions by paying off the entire card balance by the due date each month. But what to do if you are already ... Continue reading