Because You Can Not Have Any Credit Score Or History


Because you can not have any credit score or history
When it comes to making major purchases - such as a house, a car, or even a big screen TV - most people use the funding. This process usually includes a credit check. But what your credit score look as if you have no credit history?

Credit Score Breakdown

Most lenders use your FICO score (Fair Isaac Corporation) to determine if they extend credit to you. The FICO score (also called credit scores) range from 350 to 850. As indicated in the following list, the better your FCIO score, the higher your credit score:

    Score between 750 and 850 is considered an excellent rating.
    Score between 660 and 749 is considered a high.
    Score between 620 and 659 is considered a right note.
    Score between 350 and 619 is considered a bad rating.

Role of your credit history
Some people mistakenly think that no credit history is good, because there can be no negative mark on your report. Because your FICO score is primarily based on how you've used credit in the past, have no credit history leaves you with no score. Without a credit score, lenders are not an easy formula to determine if you are a risk.

Other possible factors for credit analysis
The lack of credit history and no score does not mean you will automatically be denied funding. Besides the four main factors of a credit report - identification, account history, public records of bankruptcies, bonds, etc., and inquiries from other creditors - many lenders will also look at your residence, employment and banking history.

Residence History

Your story residence may play an important role in the lender's decision-making.

The employment history

Your employment history is another of many lenders assessment of factors, especially if you have little or no credit history. A stable and consistent use can be seen by lenders as an indicator of the candidate's responsibility level.

Banking history

When you have no credit score, your credit history may come into play. Lenders tend to look more favorably on candidates who have checking accounts and savings.

Build your credit history can help you
 
When you are approved for funding, you will start to build your credit history, which will increase the chances that you will get rid of a "no credit score."

According to a Bankrate.com, candidates are evaluated against their peers. It is important to note that not all scoring models allow a perfect score.

Have no credit score is not a hopeless situation
 
Get credit when you do not score can be frustrating that some lenders do not want to extend financing offers to applicants with no credit history. However, as mentioned above, some lenders take into account additional factors for candidates with limited histories. This means that no credit score does not necessarily mean that there are offers.

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