Is having no credit better than having bad credit?
In short, both present problems, but having no credit is better than having bad credit because building good credit from scratch can be easier than rebuilding credit.
What is my credit score if I have no credit?
No one has a credit score of zero, no matter how badly they have mishandled credit in the past. The most widely used credit scores, FICO and VantageScore, are on a range from 300 to 850. You haven’t used credit in at least six months. You have only recently applied for credit or been added to an account.
Why is no credit bad?
Having no credit score indicates a lack of credit history. If you have no credit, you’ll need to. Bad credit is the result of a poor credit history. If you have bad credit, it means you have been approved for loans or credit cards in the past but you’ve been late, delinquent or otherwise unreliable with your payments.
Do you really need credit?
Having credit is not essential to your financial success. Credit is a tool, and if used wisely can be beneficial for many people who don’t have enough cash to pay for things like a home or automobile. Credit is not an emergency fund and shouldn’t be used to determine one’s financial status.