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
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.
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
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.
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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