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

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

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!