Challenges you have to face without a credit history

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com 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. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

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

The content is accurate at the time of publication and is subject to change.

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.

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:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: October 10, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!