Our society has become overly concerned with credit scores. If you have a bad credit score then you do need to be concerned. If you have no credit score, then you really do not need to worry. You may consider getting a credit card to help to build your credit score, but I would only recommend that if you were sure to never carry a balance on the card. Credit scores are used to determine the interest rate that most companies are willing to offer you for a loan.
The time that people worry most about their credit score is when they are buying a house or a car. If you must purchase a car on credit, it is better to go with a credit union that will offer you a lower rate anyway. You should try to purchase your vehicles with cash, as this will save you quite a bit of money. Most people will need to take out a mortgage in order to pay for their home.
If you have no credit score, meaning you have no credit history in the past ten years, then you may have difficulty in finding someone who will process your loan. You can still qualify for low rates. They will need to do a more in depth analysis in order to determine the rate you will receive. You may want to work directly with bank, instead of loan broker. It is important to remember that when they give you the loan they look at your ability to pay (debt to income ration—including the new loan), as well as your payment history. If you have been renting, this can provide a payment history that would not show up on your credit score information.
If you have bad credit, you should be concerned. You do need to pull up your score. The easiest way to do this is to become current on all your payments. You should also work to repay old debts that you have not paid on for some time. You should also work to reduce the amount of money that you owe.
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