Is No Credit Better than Bad Credit?

Is no credit better than bad credit? Many people begin to wonder this as they search for new homes, cars and even jobs but don’t understand credit scores or credit reports.

When you have no credit, that means major credit reporting agencies don’t have a reliable means to predict how well you perform with paying bills or repaying loans, lines of credit or other forms of financing. Bad credit does not amount to the same as no credit. Instead, bad credit means you have made some missteps or even significant mistakes.

No Credit vs. Bad Credit

Having bad credit makes matters worse because you’ve shown you have poor credit habits or that some credit mistakes have gotten the better of you, leading to a low credit score.

Is No Credit Better than Bad Credit?

Unsecured credit cards represent a standard financial product available through banks, credit unions and other service providers.

8 Ways to Build No Credit into Good Credit

1. Unsecured Credit Cards

A secured credit card is a type of credit card that requires you to put down an upfront security deposit, usually equaling the amount of your credit limit.

2. Secured Credit Card

These loans function as a tool for people who have low or no credit history. They can use them to begin building up their credit scores by establishing a credit history.

3. Credit Builder Loan

Suppose you become an authorized user on someone else’s credit card account. In that case, the credit card issuer will send a card to the primary cardholder with your name.

4. Authorized User Status

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