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Is No Credit Poor Credit?

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This is part five in a six part series on Being a Credit Expert.

Are you wondering if no credit is just as bad as poor credit?

It can be. You need to have at least a few established credit accounts to develop a score, and you need a score for most loan programs.

It’s great to keep your spending under control by only using cash, but if you ultimately need to finance the purchase of a home, the sooner you solidify a good payment history the better. Without using credit, there’s nothing for the bureaus to use as a basis for their scoring algorithms.

A good mix makes for the best start. For example, get a bank overdraft credit line, a credit card and an installment loan, such as an auto or personal loan.

Reach out today, and we’ll be happy to answer any questions you may have.

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