Having no credit score isn’t the same as having bad credit.
Bad credit is the result of mishandling credit and earning negative marks on your credit reports.
No credit, on the other hand, means you haven’t had any recent credit activity that the credit bureaus can use to generate a credit score.
Is it possible to not have a credit score?
Dear NIC, It is very possible to not have a credit report. If you have no credit accounts, or have opened an account or accounts with lenders that do not report the payment status to a credit reporting company, you will not have a credit report.
Is it worse to have no credit or bad credit?
Bad Credit: Which is Worse? No credit means you don’t have a credit record. Bad credit means you do, and you’ve made some big mistakes. If you have no credit, it means creditors don’t have a good way to predict how likely you are to pay your bills as agreed.
Do you really need a credit score?
Financial expert, Dave Ramsey says, “Your credit score is not an indicator of winning financially. All it tells you is whether you are good at borrowing money and paying it back.” Your credit tells others about your payment history and whether you pay back individuals or companies who loan money to you.
What if I dont have a credit score?
If you’ve never had any of these types of accounts, that explains why you don’t have a credit score. With no credit history, there is nothing to score. The FICO score requires at least one account that’s been active for six months. Once your account has enough history, you’ll be able to retrieve a credit score.