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Bad Credit vs. No Credit: Which is Worse?

2013/05/22 by

When discussing whether having bad credit or having no credit would be worse, it certainly is like deciding between the lesser of two evils. A recent article debated the answer to this question, and outlined what the major differences were between the two. I would say I’m more inclined to feel as though having no credit is actually worse, because you can clean up what credit you have even if it’s not the best. If you have no credit however, it’s difficult to prove that you’re trustworthy enough to be lent money– a cruel catch 22, needing credit in order to qualify for credit. So I’d have to say I would rather have poor credit than no credit. And interestingly enough, this article pointed something out to me. I always thought that the general demographic who had no credit are young adults, college-aged kids and 20-somethings who haven’t had a chance to build any credit yet. This article pointed out that senior citizens can actually come across the scenario of not having enough credit too, if they pay everything in cash and don’t ever use credit. You learn something new every day. Here is the hot debate in an article by John Oldshue:

“Many people assume that “no credit” and “bad credit” are the same thing, but that is not the case. This is not like taking a test in school, where 0 and 50 both lead to an “F”. Having no credit at all does not send the same messages as having bad credit, but it could put you in a similar situation. In either case, you should strive to build up a good credit score.

Is no credit worse than bad credit? What can you do to improve your credit score? Check out the tips below to find out.”

Click here to find out which is worse, having no credit or having bad credit.

If you’re in the boat of having no credit, it can be tough starting off. Try easing into the world of credit by applying for a retail card such as a gas card or a Macy’s card. Often, they are not as strict about requiring a credit history because their credit limits are much lower. A secured credit card is also a good way to go to build some credit. Good luck!

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