The Impact of Having No Credit History


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most 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. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » The Impact of Having No Credit History

The Impact of Having No Credit History

If you have no credit card in hand and have not applied for any loan either, then it is quite obvious that you have credit report and hence no credit history that you can talk about. You are lucky in one way because world over, there are many who have earned themselves a bad credit history and are busy repairing it, but if you have no credit score to talk about, you may be facing a few disadvantages too.

Disadvantage 1: Lender's Dilemma

As a borrower, you may do all your homework to find out from whom you can borrow the money to pay less interest, but as lenders, they too are too cautious before they believe you. Many lenders go by looking at your credit reports which talks about your credit card history. When you have no credit history, they may not trust you easily since there is no way they can assess the way you will handle your finances and whether you are reliable.

Disadvantage 2: Lack of Proof

Surprising though it may be, no credit card history means no proof of your maturity in handling your finances. When you are prompt with paying your bills, prioritizing your expenses, managing to keep up with deadlines etc, your credit card history will do all the talking for you. When you have no credit history, people may take time to believe you.

Disadvantage 3: Slower Bank Transactions

Bank transactions are always time consuming. Even a process as simple as opening an account will require some amount of time and certain transactions will require verification of your background details too. One of the frequently verified details is your credit report. Banks will look into the credit report to know how responsible you are with repayments and whether they can trust you as a reliable customer. In many cases, loans have been granted to customers simply because of good credit history and in some other cases, banks have offered lower rates of interest on loans. If you have no credit history to boast about, you may be missing out on all these benefits.

All you have to do is be wise with managing your finances rather than have no credit history to be spoken about at all. Credit reports are indications of how you can make sound decisions and you must let them do the talking for you.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
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.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Top 5 Cards for Travel from Our Partners: Spring 2018 – Expert Choice

Top 5 Cards for Travel from Our Partners: Spring 2018 – Expert Choice

Posted: February 12, 2018

Days are getting longer, snow is melting and you already feel the lightest breath of warm breeze on your face - spring is here. Summer holidays are looming, and so is Easter with its shopping. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading