Are You Credit Invisible?
What does it mean to be "Credit Invisible" in the first place?
If you have no credit history with one of the three nationwide credit reporting bureaus, Experian, Equifax, or TransUnion, you are considered credit invisible. Millions of people in the United Kingdom fall into the “credit invisible” category.
Is it a terrible thing to have no credit?
You've probably heard that having no credit is preferable to having bad credit. While this is based on the notion that creating credit from the ground up is easier than rebuilding credit, it is by no means a justification to avoid doing so. Due to your lack of credit, you may be unable to take advantage of beneficial financial prospects such as cheaper interest rates and more loan approvals.
The Consequences of Having No Credit History
Your credit score may have an effect on your ability to:
Get a place to live.
Get a cell phone without putting down any money.
Obtain a loan approval
Get a job - many people are unaware that businesses conduct credit checks prior to hiring them.
Be more prepared in the event of a financial emergency.
Having a good credit history can help you deal with financial difficulties. Due to your lack of credit history, you may be turned down in an emergency circumstance where you need to borrow money. Those with no credit history would be forced to hunt for higher-cost solutions due to a lack of possibilities.
What can I do if I don't have any credit?
You'll be in a better position to build credit if you understand how credit works. To understand more, visit our blog Credit Score: The Basics. Finally, but certainly not least...