What You Should Do In the Absence of a Credit History


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 » What You Should Do In the Absence of a Credit History

What You Should Do In the Absence of a Credit History

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

There are so many things a credit history can make or break for us. In the credit-based economy, a credit history matters most. The credit history is the main source where our credit score comes from our credit score is our credit worthiness which is unique to us. How we handle our financial and credit lines is recorded and is transformed into a three-digit score. Every move you make and every step you take in credit-related activities constitute your worthiness and standing in the world dominated by credit use.

A messed up credit history will lead to further financial troubles and debt accumulation. Although there are ways to turn a bad thing to a good one, it would take much time, money and effort as well. A bad credit history is not the only problem one can encounter with credit histories. The absence of any credit record can also be as problematic.

Credit card companies and loan providers work with risk assessment in dealing with their applicants. How risky one can be can only be seen through his/her credit history. Once you applied for a credit card from a bank for instance, the bank will definitely contact any of the three major credit bureaus to get a copy of your credit records to know if you are a risk for the bank or not. But what if you do not have that thing mainly utilized by credit card companies and providers to assess your application?

We all start from having no credit history for we are not born with a credit history as our twin right? So if you do not have any background for your credit card company to check, maybe that is where you have to start.

If you do not have a credit record yet then start making one. I know it is not as easy as that but the things that you can start doing can be easy if they are coupled with some determination from you to accomplish them in the most effective way. Another thing, having no record situation can still have a bright side after all. It is a chance given to you, a blank piece of paper for you to start with thus you all have the chance of making things perfectly right.

Opening a bank account can be your first move-a savings and checking account are good ideas. Although this will not directly give you what you want, this can be a good starting point where you draw your record. After proving that you can well manage your finances, try applying for store credit cards. Well store credit cards providers are more likely to take chances from beginners. Make sure to use these retail credit cards to make an impressive record (as much as possible) so that you will be confident to apply to any major credit card providers in the near future.

If you are financially confident enough to take a step ahead, you can apply for credit cards from banks and providers who offer services moreover specialize in catering the service needs of those who do not have credit records yet. However this might cost you something serious. Remember lenders and credit card companies always consider risk and for someone who does not have any record you are automatically considered risky at some point.

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 Secured Credit Cards: December 2020 – Experts’ Choice

Top 5 Secured Credit Cards: December 2020 – Experts’ Choice

Posted: September 22, 2020

The COVID-19 pandemic has made significant changes not only in people’s lives and their financial standing but also in the entire financial sector of the U.S. We have collected the best secured card offers from our partners so that you can… Continue reading

Credit Card Tips For Holiday Shopping 2020

Credit Card Tips For Holiday Shopping 2020

Posted: August 15, 2020

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household… Continue reading

Top 5 Soft Pull Credit Cards: December 2020 – Experts’ Choice

Top 5 Soft Pull Credit Cards: December 2020 – Experts’ Choice

Posted: June 3, 2020

When applying for a credit card, you definitely don’t want your credit score to go down. Here, you will find the best credit cards with a soft pull from our partners. An application for such cards won’t make changes to your credit history… 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!