What does having no credit history imply?

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 » What does having no credit history imply?

What does having no credit history imply?

Add to Favorites:
What is no credit history? Before we get an answer to this question we should first know what a credit history is and the factors that go into the making of a credit history. A credit history or a credit score consists of a person's past loan details, how he/she repaid those loans, whether he was late in repaying and at any point of time declared bankruptcy. This is the information a credit history of a person will provide. Most countries maintain credit history of their citizens through various established credit bureaus. A good or bad credit history will reflect on a person’s reputation as a borrower. When you apply for a credit card, bank loan or store in the US your application will be forwarded to a credit bureau for verification of your past financial transactions. The bureau with the help of the details given in your application equate it with the information filed in their reports and prepare your past credit record. This record will determine the outcome of your loan application. So it becomes significantly important for the lender, borrower and other people involved in the loaning process to provide correct and timely transaction details to the credit bureau or agency. A bank or a credit card company evaluates a person’s ability, and keenness to pay back his/her loans by going through this record and decide his worthiness to avail a credit. In other words, your credit worthiness is determined by how punctual you were in paying your monthly loan installments in the past. Lenders oblige readily to borrowers who pay back their loans timely. There was much debate on the accurateness of the consumer data provided by the credit bureaus. However, scientific research undertook by checking on many sample data have concluded that the reports given by these agencies are extremely accurate. This fact was acknowledged and testified by the Consumer Data Industry Association before the congress that the error margins of the reports challenged by the consumer were less than 2%. The credit bureau has a period of 30 days to check the data of a disputed credit record.  However, credit bureaus generally take less than two weeks to solve most consumer disputes. More than 70% of them have been resolved and the results notified to the consumers. The out come of these results have been satisfactory to the consumer and The Federal Trade Commission have acknowledged it as well. Income of a borrower plays a major part in deciding whether a creditor will lend money to him or not. It will also determine the size of the loan, he or she is likely to offer. A borrower can get a higher loan amount, if their monthly income is high. Nevertheless, the lender always considers factors like the consumer’s ability to repay a loan, credit history, and his income capacity. A person who has not borrowed in the past from banks, credit companies, etc., or has no records of borrowing and repaying reported to credit bureaus may be deemed as a person with a "No Credit History".

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:

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

Posted: June 21, 2017

Whether you are married or not, we all agree that marriage is incredibly important for a person. It signifies the beginning of two people as a team, as a family, of a long commitment. It is a newly born union and the sign of your choice, ... Continue reading
How to Save Money. Best Credit Card Deals and Tips.

How to Save Money. Best Credit Card Deals and Tips.

Posted: June 20, 2017

We all've been through or may find ourselves in such an emergency when money is needed immediately. Lucky you are if you have savings for unexpected expenses. If not, it's never too late to start saving money. There are different ways to ... Continue reading
How the Fed Rate Rise Impacts Credit Cards

How the Fed Rate Rise Impacts Credit Cards

Posted: June 20, 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