Nearly 1 in 5 Americans are “credit invisible” or “credit un-scorable”. This means they either have no credit history with the main credit bureaus or there is insufficient information to generate a credit score.

Unfortunately, having no credit score makes your life harder in a number of ways.
1. It’s difficult to buy a car. Without a credit score, it’ll be hard to qualify for anything other than predatory auto loans with sky-high interest rates. Unless you can provide a cosigner or pay in cash, you’ll end up paying a premium to buy a car.

2. It’s almost impossible to buy a house
Having no credit makes it nearly impossible to buy a house unless you can afford to make a huge down payment and pay astronomically high fees. At the very least, the process of getting approved for a home loan will be extremely lengthy and involve lots of additional documentation, as you don’t have a credit score to prove to lenders that you can borrow responsibly.

3. You might struggle to cover emergency expenses
We all have to deal with unexpected expenses from time to time. While it’s always best to have cash reserves on hand to cover them, sometimes it’s not possible. People with good credit can access low-cost financing tools in these situations, such as low-interest loans and 0% APR offers on credit cards.

4. It can be harder to find a place to rent
Landlords usually run background checks on potential renters, and these often include a check on your credit history. Good credit shows you’re likely to pay your rent on-time, while no credit provides no such proof. If you have no credit, a landlord might require a bigger deposit or a cosigner.

5. It’ll be hard to qualify for a credit card
You might not need a credit card now. However, there are situations where they come in handy. For one, some businesses, such as hotels and rental car agencies, won’t let you make a reservation without a credit card.

6. Your insurance rates might be higher
Credit history is a factor for some car insurance companies when deciding how much to charge you for an insurance policy. If you have no credit, be sure to shop around for the best rates on car insurance. Some policy providers take credit scores into consideration more than others.

7. You might have to pay a security deposit on utility contracts
Utility companies typically run credit checks before offering you a contract. This includes companies
If you have no credit, you’ll likely be required to pay a security deposit before signing up for utilities.

8. You won’t get the best deals on cell phone contracts
Many carriers will also require you to put down a deposit of a few hundred dollars on a cell phone contract if you don’t have good credit.

How to build a credit history from scratch
One of the easiest — and cheapest — ways to consistently build credit is to use credit cards regularly and always pay them off. Secured credit cards are one way that people with no credit can gradually build up a payment history. They require you to put down a deposit, which is usually equal to your credit limit, and allow you to spend and make payments. The best secured credit cards have low or no security deposit requirements and no hidden fees. Just make sure to pay off your bill in full each month to avoid interest charges.

There are now a number of credit cards that will approve you, even if you have no credit history at all. While there are many downsides to not having credit, the good news is that building credit has never been easier.

A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link to schedule your FREE consultation and create your personalize plan to achieve your credit and debt GOALS!

*Individual results may vary. Please call for details and to discuss your own individual situation.