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No Credit
Explanation:
"No credit" and "limited credit" are often used interchangeably to describe people who either do not have any information on file with the major credit bureaus (Equifax, TransUnion and Experian) or whose credit reports reflect less than three years of experience as the primary account holder on a credit card or loan.
Young people and recent immigrants just beginning financial autonomy in the U.S., are not the only ones typically classified as having "no credit." Unfortunately, recent divorcees and widowers can technically be "new to credit" as well, even if they once had robust credit histories, because creditors require up-to date-information about one's credit performance.
As opposed to "bad credit," which denotes poor credit management, "no credit" simply means that you have yet to establish a pattern of credit usage (either positive or negative).
Our Thoughts:
Given the importance of an extensive credit history to your future credit and loan prospects as well as your ability to rent property and obtain jobs that involve the handling of money or that require government security clearances, it is important that you begin the credit building process as soon as possible, if you have not already. Opening a credit card is the most efficient way to do so, given that positive information will be added to your major credit reports each month, whether you make purchases and always pay the resulting bills on time or simply lock the card away in a drawer after activating it and paying any membership fees.
Unless you are a student (in which case you should get a student credit card), we suggest opening a secured credit card. By adding to your secured card's deposit over time, you can consistently increase your available credit (your deposit equals your credit limit) and expedite the credit building process.