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Research: Why Credit History is important for you -

Having no credit history is considered to be as bad as having a lost line of bad credits on your record. This is because having a credit history is important as it has become an important part of everyday living, and it is relevant information for a consumer in using in his or her financial transactions.

Having a credit history is that important, and would give you access to the many benefits and opportunities that it presents to consumers like you. Otherwise, you would be prevented from enjoying and accessing them. The danger of having no credit history is that you would have little or no information to prove your payment behaviour as a consumer. You would be labelled as a financial risk by your money lenders, your credit card company, and even in the workplace you are employed in.

Speaking of which, your money lenders and credit card issuers would be reluctant to make any financial dealings with you if they see that you lack a credit history. Remember that these institutions are part of a for-profit business, and that they thrive on lending money and getting them back from their clients with interest. So if you have little or no proof that you are capable of paying back the money with interest then they would not likely take a chance with a financial risk like yourself. And because the requirement for starting a credit account to start a credit history is a credit history itself, then it is a Catch-22 situation.

But, thankfully, there are ways to solve the problem of having no credit history. Keep in mind that these for-profit institutions are primarily looking for proof of your responsible consumer behaviour and, in this day and era where plenty of information is accessible, you would definitely have some form of record of your payments and purchases. You would no doubt have some documents that show your line of payments and purchases, and you could use them to your advantage to start your own history of credit.

You could use information about your bank accounts, your employment record, and even the retail store cards that you use when buying groceries. These things work just as well as a record of credit history, as it shows your consumer and payment behaviour. It would convince your money lenders and card issuers to give you the chance to borrow money or credit from them. Records of your paying electricity bills and waters bills would work as well, especially if you always pay them on time and more than the minimum payment.

You could also try to seek out some credit card issuers that are willing to give you the chance to start a credit account even when you have no credit history. Some Visa and MasterCard cards allow people with little or no credit history to sign up, so you could try them out. And if you are still a student, then things would be easier for you because issuers recognize that students have an acceptable credit risk despite having little or no credit.