Pros And Cons Of Not Having Credit History


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Credit Card Applications » Research » Guides » Building Credit History » Pros And Cons Of Not Having Credit History

Pros And Cons Of Not Having Credit History

The content is accurate at the time of publication and is subject to change.
It is often considered that no credit history is a bad thing. But, in certain situations, this can be a blessing in disguise. If you play your cards right, you can actually stand to gain quite a bit from this situation. Hence, rather than be worried about how to compensate without a credit history, it would be good to see all the options that are present in front of you and then pick out the right ones accordingly. Believe it or not, people have gone on to lead fulfilling lives having started from scratch and no credit record whatsoever. Second chance For those who have messed up in another place, the option to start anew with no credit history can be considered as quite a good thing to have. Hence, if you realized what your mistakes were, it would be easy to avoid them now and start afresh, leading to a better outcome. You can consider this to be a second chance to redeem yourself and come across as a responsible and reliable person for your creditors. However, don`t get carried away and take risks, as messing it up again will make recovery quite hard. Restricted choices However, the fact that you have no credit history means that you have very few options to pick out from. Hence, you might have to take solace in what little you have and plan with that. In many instances, these options might mean spending more out of your pocket, but in due time, things will improve and you will be able to get better things to select from as well as to take advantage of. This is all the more true when it comes to things like credit cards and bank accounts. You might have to pay a lot more interest on bank loans as well, in order to qualify for them. Benefit of the doubt Since there is no credit history, sometimes, companies do give you the benefit of the doubt and start your record from scratch. Hence, it is possible that you might be able to bank on statistics and get a good deal on the whole. When it comes to insurance, this is usually the case. Since even driving record might be absent along with credit record, you might be given a rate based on statistics for your age group and gender. Clearly, this can be a beneficial thing if you have had some major issues in some other country without a credit record system. There are always two sides to an issue, and not having credit history is no different. Hence, you might be able to benefit from this option in some ways, while have to pay extra in certain others. Carefully considering what you are getting into and then taking the decision is something that you might benefit from in such situations. Don`t assume that no credit history means you will not be able to benefit in any way. There are still things that you can do without a credit record, many of which actually can help establish your creditworthiness.

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.
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