Are you one of the over 45 million Americans who don’t have a credit score? If yes, one can draw two conclusions: Either you’re starting out in life as an adult or money isn’t one of your problems!
You see, credit is part of the average American. If you have a credit card or personal loan, you’re a credit-active consumer. You have a credit history.
If you’re not credit-active, access to credit facilities, rental housing, and other utilities can be a major issue. As such, you need to master the craft of living without credit.
In this guide, we’re sharing tips and hacks you can use to get by even when you don’t have a credit history. Read on!
Build a Healthy Rainy-Day Fund
The biggest benefit of having a credit score is being able to secure loans easily. This means you have a backup plan should you encounter a financial emergency. You can secure a loan and settle the emergency.
However, when you’ve no credit, you have no such luxury. Most lenders will turn down your application when they see that you’ve no credit history.
Strive to build a healthy rain-day fund. If you’re currently employed, save a substantial amount from your check every month. This way, you’ll likely have enough money to settle any financial emergency that comes your way.
Don’t Leave the Nest Too Early
As a young adult, one of the hallmarks of adulting is finally moving out of your parents’ house. Unless you can afford to buy a house in cash, you’ll certainly be renting.
Most landlords will run a credit check to establish whether you’re financially responsible. With no credit history, they have no way to tell whether you’ll be able to pay up your rent on time. Your tenant applications will be rejected.
For this reason, don’t leave the nest too early. Build credit first before moving out.
Look for No-Credit-Check Service Providers
Having no credit doesn’t necessarily mean you’re not financially responsible. In fact, it could mean that you’re so financially stable you have never needed a loan or credit card.
Thankfully, there are companies that know this. For example, there are lenders that offer no-credit-check loans. As long as you can prove that you’ve got a steady income, you’ll get the loan.
There are also telephone companies that won’t need your credit history in order to sell you a smartphone or phone plan. For example, here is how to get an iPhone even when you have no credit.
Start Building Your Credit
You possibly can’t go a lifetime without credit. Even if you’re financially stable right now, you might need a loan to afford big-ticket items like a house.
You need to start building your credit soon. Go to your local bank and apply for a credit builder loans or get a secured credit card. These facilities are excellent for building credit.
Living Without Credit Made Simpler!
Living without credit can be hell – literally. Lenders will shun you. Landlords will say you’re not worthy of being a tenant. You can hack this life, though. Just put these tips to use. And don’t hesitate to start building your credit.
Keep reading our blog for more money tips and hacks.