One of the questions we hear frequently at ScoreSense has to do with a lack of credit score. Many people are confused, because when they try to pull up their ScoreSense credit scores, they find that they don’t have any! Fortunately, this is no cause for alarm, and there are definitely ways you can build a healthy credit score. Here, ScoreSense offers a few key points to explain the process.
With a membership to ScoreSense, credit information is available 24 hours a day, but ScoreSense reviews this information by pulling it from the three credit bureaus, and if there’s nothing there, there’s nothing to report! One problem is that some people believe that paying cash for things, rather than taking out loans, is a good way to avoid a negative credit score. The assumption is that if a person has never had a mortgage, taken out a loan, or used a credit card, his or her credit will be spotless, and to an extent that’s true. However, not having any bad marks is not enough to create a credit score, because it doesn’t indicate how you’d use credit if it were given. Lenders have to have more information to determine whether a borrower is a good risk, and if you do not have enough information in your file to generate a credit score, you’ll simply have a score of zero. Many lenders will not take a risk on an applicant without a credit history.
Sometimes, however, a lender is willing to look at other factors. Your employment history shows how stable and consistent you are, and your history of residence shows whether you’ve ever been evicted, or if you’ve stayed at one place for a long time. Your banking history, too, may come into play, and lenders prefer applicants who have both checking and savings accounts. When lenders are evaluating people without a credit score, sense of responsibility and stability is very important.
So how can one build a credit history? It may seem counterintuitive, but taking out a credit card is a great way to start. Make small purchases using the credit cards, and always pay them off as soon as possible, making sure to pay on time each month. In this way, you will be building a positive credit history. Then, partner with a company like ScoreSense, also called OTL ScoreSense, to keep an eye on your credit history as it grows.
ScoreSense helps people take control of their financial situations, in a number of ways. ScoreSense reviews your credit, and alerts you to possible problems, so that you can handle them promptly. ScoreSense also protects your credit and your family, with Identity Theft Monitoring and Neighborhood Sex Offenders alerts. To learn more about becoming a member of ScoreSense, visit the website, where you’ll find a wealth of useful information.