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bad credit or no credit?

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yolyyolyus
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bad credit or no credit?  Reply with quote  

I've been out of work for more than 10 years, therefore, I've had no credit cards or loans during this period. I recently got back to the work force and want to get my credit back on track. Since I don't know how my credit looks like and don't have anything recent in my credit report, does my credit will be considered as bad credit or no credit? I recently applied for a Capital One Card and got approved a low credit line. But I also applied for an Orchard Bank Card and got denied. Is there another easier way to get credit? any other cards that are easy to get approved? perhaps department store cards?
Post Sat Apr 30, 2011 5:24 am
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coaster
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Federal law entitles you to one free credit report per year from each agency. Go to this website:

www.annualcreditreport.com

(do NOT go to the one with "free" in its URL)

Your credit report will be free; if you want your score, it's extra for a modest fee. I think I was charged $7 last time I tried.
Post Sat Apr 30, 2011 6:26 am
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KatherineLee88
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Re: bad credit or no credit?  Reply with quote  

quote:
Originally posted by yolyyolyus
Since I don't know how my credit looks like and don't have anything recent in my credit report, does my credit will be considered as bad credit or no credit? I recently applied for a Capital One Card and got approved a low credit line. But I also applied for an Orchard Bank Card and got denied. Is there another easier way to get credit? any other cards that are easy to get approved? perhaps department store cards?


If you previously had a credit card or loan, you DO have a credit history - unless you get your credit report and your credit score, you can't really know if you have good credit or "bad" credit. The fact that you were denied for an Orchard Bank card to me suggests that you fall a bit on a lower side for a credit score, but the first step to changing that is KNOWING what that score is. I personally have used myfico.com to purchase credit scores.

I suggest your next step, if you haven't already, is find out what your score is. Then you need to wait a few months before applying for new cards. Everytime you apply for a new card the lender you apply with does a "hard pull" on your credit report which if you have a lot of them in a short period of time negatively affects your score. These "hard pull"s fall off the report after a few months. Also, it looks bad to lenders to see a person applying for a lot of credit in a sort time. If you don't NEED the credit, don't apply for it all at one time. Wait a few more months and then apply for another card. In the meantime use your Capital One card appropriately. Pay the balance off in full each month, and try to never charge more than 30% of the credit limit of the card. So for example, if you have a $1,000 limit on the Capital One, don't charge more than $300/mo on it.
Post Sat Apr 30, 2011 10:21 pm
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jennypaul
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I think so there may be a reason that you were not doing any work for more than 10 years, and during that period you did have any credit history. But if you have some regular monthly transactions (credit and debit) then you can expect a loan or credit.
Post Thu May 05, 2011 7:41 am
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jonymony
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Payday Loan company provides the instant payday loans. Get instant Cash advances within 24 hours. People with bad credit can also apply for this payday loan.
Post Wed Aug 03, 2011 9:16 am
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redleafloans
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Hmmm.. That's an interesting question. I honestly do not know as well if this would be considered as bad credit. Maybe the best thing that you can do right now is contact a financial adviser.
Post Fri Jan 20, 2012 7:23 pm
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iwillguide
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Hi  Reply with quote  

Credit score plays an important role in the present financial world. Wherever you go for getting loan, it is very important to have a good credit score for approving your loan proposal especially in the case of banking sector. If you have a good credit score, you will get a loan anywhere without having any stuff. So, credit score becomes a personal asset to you. For getting a good credit score is not an easy thing. But it is possible with your good effort. So, first make your monthly payment on time and reduce the number of your credit card holdings. Keep your annual credit score report without any errors.

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Post Thu Jan 26, 2012 12:42 pm
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Offshore-Wealth.com
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NO CREDIT Is JUST As BAD AS HAVING BAD CREDIT  Reply with quote  

Interesting,

No doubt your credit file should be reviewed at minimum once a year, and as it is free, everyone should stay on top of credit files given the huge ratio of incorrect credit reports, so bad that I would bet everyone has at least one item which is incorrect.

Having no credit is just as bad as having a bad credit report, the answer from lender will be the same, declined, so if you have not had any use or need for credit in 10 years, as first post indicated, then you should be prepared not to be approved for anything from anyone.

If you had bad credit report, most will have a reason, unemployed, illness, etc., so some lenders will look at all your payment history, and if you had several good references up until one point, and you settled late payments, this is something you should stay on top of when evaluating your credit reports. Stay on top of it for you never know when you may need credit in this down economy.

If you have no credit on your report, which I ended up having with one reporting agency, it was just as negative as having a bad report for I was turned down for a car loan, while I had several paid on time over ten years ago. Many reports will not show older credit history, so even if you don't need credit, it would be smart to keep a few active credit accounts open, or like I did, put 50% down on car loan, then paid it off in three months just to have something on my report.

I have many clients who have had no need for credit for over ten years, and if like most their savings or stock holdings are not paying what they once were, they need credit, and they no longer can get approved, so keep some credit activity whether you need it or not and don't let that ten year window expire without having an active credit account or two. Never say never, you never know in this economy if you may need a loan, so be smart, always keep up on your credit report.

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Post Thu Jan 26, 2012 1:47 pm
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Eveleen
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Re: bad credit or no credit?  Reply with quote  

This is the boon for the bad credit that is not having good reputation ion in the market just because of his tarnished image they have to walk here and there for the purpose of getting monetary assistance but they donít know where to go or how to get their problem solved.
Post Mon Feb 13, 2012 8:53 am
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cohan99
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If a traditional credit card is out of the question, a secured credit card may be your answer. These work by paying a certain amount down to establish a borrowing limit prior to obtaining the card. Secured credit cards are also a great way to rebuild your credit.

Individuals with bad credit can also try having a friend or family member co-sign on a credit card account, but this poses a risk because that person will also be responsible for any unpaid debt.
Post Fri Feb 17, 2012 7:27 pm
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Flipyourdebt.com
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You're on the right track  Reply with quote  

It takes healthy debt to build credit. A couple words of caution:

1. Don't apply for too many credit cards at once. Too many requests for credit reports in a short amount of time can damage your score. Spread it out.

2. Don't max your cards out. Maxed out cards will send a flag to lenders that you can't manage money. A healthy balance that will improve your credit score is about 30% of your card limit.

solicitation removed

Good luck!
Post Mon Feb 20, 2012 8:47 pm
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fast
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Re: bad credit or no credit?  Reply with quote  

quote:
Originally posted by yolyyolyus
I've been out of work for more than 10 years, therefore, I've had no credit cards or loans during this period.
It may in fact be the case that you have had no credit cards during that period, but it's not the case that you therefore (therefore, I say) had no credit cards during that period merely because you've been out of work for more than ten years. For example, a person who hasn't had a good credit card account closed in the last ten years will still show the trade line on their credit report. But, that's a minor quibble.

At any rate, there's a big difference between no credit and bad credit, even if it's the case there may be some places who won't grant credit for people with either. Having no credit is often better than bad credit, but not always, as some people with some bad credit have some credit that isn't bad, and sometimes, the good credit will outweigh the bad and therefore be better than no credit, but if we're comparing rathers, then you'd rather have no credit than credit that's mostly bad. Chances are, you have no credit. Even good credit usually disappears after ten years on closed accounts.

What's really interesting to know is if good credit is better than no credit, as you and many others seems to think. Dave Ramsey has an interesting view on that one.
Post Tue Feb 21, 2012 3:18 am
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coaster
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Re: bad credit or no credit?  Reply with quote  

quote:
Originally posted by fast
What's really interesting to know is if good credit is better than no credit

We sure get a lot of posts from people who have trouble getting credit, period, because they have no credit history. In today's world, having a credit line is almost a necessity. Having credit available doesn't mean it has to be used. But having it available if perchance a time comes when the cash available isn't enough, then it's there. You can't get it when you need it; you have to already have it. Catch-22, sort of. Wink

~Tim~
Post Tue Feb 21, 2012 5:39 am
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