26 Dec Bad Credit vs. No Credit: What is the difference?
Bad Credit VS No Credit is very similar in a sense that both of them are far away from good credit, other than that they are completely different. But what is the difference between them?
No credit means you don’t have a credit record, a lack of credit history. Bad credit means you do, and it’s a result of poor history, basically, it means you’ve made some big mistakes.
Bad Credit vs No Credit:
Having no credit means you have no record or history of bills you have paid in the past or not. It also means creditors don`t know you as a debtor either if you are a good or a bad one because they have no way to know how likely you are to pay the bills you agreed on.
If you have no credit, you’ll need to build credit before you can try to rent a house, apply for an unsecured loan or most of the credit cards. It doesn`t matter if you have a good income if you have no credit history you will still be seen as a risk for the creditor because you have no track record.
But, the good news is: if you have no credit score it’s a lot easier to fix it as you are starting from scratch.
On another hand, bad credit means you failed on loans or credit cards you have been approved for, either you were late, delinquent or unreliable with your payments. Or, in rare possibilities, an error in your credit reports or potential identity theft can also result in bad credit score.
Often defined as a score below 630 on a 300-850 scale a bad credit score makes creditor reluctant to approve credit because you’ve made some major credit mistakes in the past
If you have bad credit, you have a different problem with a similar solution, but now instead of trying to build credit, you are trying to rebuild it and unlike people with no credit you do have a credit report and it`s good to know what it says so you can find the solutions you need. But if you don`t know what your report says we can help you review your credit.
Most credit missteps fall off your credit report in seven years. In the meantime, you can use some of the strategies for establishing credit. The battle of bad credit vs no credit isn’t important at this point, what’s important is to focus on improving it and Baby Boomer Credit Repair can help you with that! Send us a message or call us today at +1(833)700-6835 and talk to one of our specialists.