No Credit vs Bad Credit + Ways To Build Good Credit

This article will talk about what having thin or no credit is like compared to bad credit. We will also discuss ways to build or rebuild your score, so you don’t have to worry anymore! 

No Credit vs. Bad Credit

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 means you have made some missteps or even significant mistakes. 

Is No Credit Better than 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.

8 Ways to Build No Credit into Good Credit

1. Unsecured Credit Card

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

2. Secured Credit Card

A secured card typically works best for individuals with no credit or looking to rebuild bad credit.

3. Credit Builder Loan

These loans do not require you to have stellar credit to receive approval, just the income to make payments. They work by depositing money into a bank account and borrowing money and then making repayments.

4. Authorized User Status

Parents wanting to help their children build credit often use this strategy to establish credit and build a credit history for their kids.

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