Financial IQ October 09 2018

What’s Scarier Than Bad Credit? No Credit!

Many may pride themselves on having zero debt, but is it really the best for their financial future? Not as much as you may think. Being “credit invisible,” or having little to no credit, can make large purchases and future milestones way more challenging to achieve. It's best to think of your credit score as an adult report card. It is a way for lenders to predict how likely you are to pay your loan back. While bad credit means you have a credit history with some significant blemishes, no credit means you don’t have a record at all – which can often be just as bad.

Even with a reliable income, with no credit history, you will be seen as a risk because you don’t have a track record a lender can refer to. A lack of credit can result in:

  • Paying higher utility deposits
  • Higher interest rates on loans
  • Trouble renting an apartment or purchasing a home​​

 

4 healthy credit habits

 

The good news is, having no credit tends to be easier to correct than having bad credit. You get to begin with a clean slate! Here are a few ways you can start building your credit history:

  • Apply for a secured credit card
  • Keep your purchases small and always pay your bill on time
  • Accumulate a consistent payment history

 

Staying off the credit radar may seem like the safest option, but it’s not always in your best interest. Your credit report reflects your ability to manage money, and more importantly if you can pay back any that has been loaned to you. In a lot of cases, credit isn’t an option – it’s a necessity for some major milestones, like buying a car or a home. 

Need help with your credit?

Visit HBSG Today!

By Meagan Rochard  

 

Sources:

onmyway.wf.com

nerdwallet.com

Search Results for query

February 07 2019

A Modern Mortgage with a Personal Touch

In the digital age, we know that you expect a simple online experience that is quick, easy and guides you step-by-step through the mortgage process. With Eagle’s Digital Mortgage, you can apply for a home loan faster and easier than ever before –...

Read More

February 04 2019

How Secure Is Financing Your Home Online?

Technology has changed the way we live our lives – including home financing! Eagle’s Digital Mortgage has been found to save days (even weeks!) in the mortgage process by providing a more complete pre-qualification upfront and an easy way for you to...

Read More

January 23 2019

A Community That Fits Your Lifestyle

You’ve worked your sixty-hour weeks and raised your family, now is the time to live the lifestyle you deserve. Lennar's award-winning Active Adult communities create a relaxed and stress-free setting while also offering a variety of amenities and...

Read More

December 13 2018

Student Loan Debt? How You Can Still Get A Mortgage.

While your student loan debt may look like the biggest obstacle getting in the way of homeownership, a lender may not see it as much of a threat. Here are what lenders are looking at and how your student loan debt affects your approval.

Read More

November 15 2018

The Impact of Rising Rates

If you’ve ever had a credit card or purchased a car, you should be familiar with interest rates. An interest rate is the percentage of the amount you are borrowing (known as the principle) charged by the lender as a fee for allowing you to use their money....

Read More

November 12 2018

What to Keep From Your Closing

After several stressful months of buying or selling your home, it may be tempting to put the transaction in the past and dispose of the evidence—which is often more than 100 pages. However, there are several important legal and financial documents...

Read More

November 05 2018

What is an Appraised Value?

Everyone wants to sell their house for more than they bought it for, but real estate is trickier than that. Markets change, and home values change right along with them. Fortunately, there are licensed professionals called appraisers who will come to your home,...

Read More

November 02 2018

Pros and Cons of Buying a Condo

Whether you are a first-time homebuyer or searching for home number ten, buying a condo instead of a house may be the perfect choice. Most condos are essentially a hybrid between an apartment and a single-family home. They are great for certain lifestyles but...

Read More

October 29 2018

What a Home Inspection Should Cover

Before making what may be the largest investment of your life, you’ll want to get a home inspection. Home inspectors are trained to examine the physical structures and systems of a house. If you’re going to spend hundreds of thousands of your...

Read More

12345Last

Mortgage Calculators

Crunch the Numbers With Our Helpful Mortgage Calculators

Payment Calculator

payment calculator

Payment
Calculator

Affordability Calculator

affordability calculator

Affordability
Calculator

Refinance Calculator

refinance calculator

Refinance
Calculator

The Modern Digital Mortgage with a Personal Touch

Paperless. Effortless. Awesomeness TM

Simplify the home financing process with our Digital Mortgage. We'll be here to help navigate you through the entire process.

Get Pre-qualifiedWhat is a Digital Mortgage?