What is better- bad credit or no credit?
597163
Both are bad, but no credit is worse!\n\n"What would you say, Mike, if I asked you which is worse, a bad girlfriend or no girlfriend? If I had to choose, I believe I would take "none" over "bad." Both require some work to remedy, but "the absence of something" is an easier, less stressful situation to change! \n\nBad credit means, among the many possibilities, that you have made mistakes, had life challenges such as divorce or a job layoff, just did not understand the commitment you were making or any combination of these and other factors. \n\nWhichever way you arrived at bad credit, it was likely a bumpy, nerve-racking ride that you would, in hindsight, prefer to have avoided. I know there are some out there who think that bad credit comes from drinking too much champagne and working too little; but my experience has not borne this out. I think that this myth is so popular because we all want to think it couldn't happen to me. It only happens to those who do something to bring it on themselves. Comforting logic, but wrong. It can and does happen to anyone!\n\nNo credit, on the other hand, is simply a matter of having no credit history because you have paid with cash, check or debit rather than credit and have not borrowed money for a car, home or other large purchase. \n\nThere are limited cases where bad is better than none, or so I'm told. For example, Boston is full of Red Sox fans who claim that a bad team is better than none. After more than 80 years of the same negative result, you would have thought they'd have learned by now. Perhaps 90 will be the charm!\n\nYou did not ask, but I am sure inquiring minds want to know, how to "fix" both of the credit situations you mentioned. (Fixing the Red Sox will take more space than I have available here.)\n\nBad-credit fixes:\n\nPay all bills on time or ahead! To help simplify the process, once you get paid, pay all the bills that are due between then and your next paycheck. Allow time for the mail and processing. \n\nLearn to live on your take-home income. This means if you do not have the money, don't buy it. In other words, do not add to your existing credit balances.\n\nPay all charged-off accounts that appear on your credit report. A paid charge-off is much better than just a charge-off. \n\nCreate a realistic plan to allocate a portion of your income to pay off large credit card balances. A high debt-to-income ratio could be causing you to lose points on your FICO score.\n\nGive it some time. Most creditors look at your most recent credit history (last two or three years). \nNo-credit fixes:\n\nApply for a secured credit card. A savings account secures the card in case of default. \n\nOnce you have used your secured card for several months, apply for an unsecured credit card (just one, don't overapply). You may have the best luck with a retailer or with the same bank from which you received the secured card. \n\nYour credit history measures all types of credit accounts, so you may want to establish a longer-term installment loan for a car or some other large purchase loan, such as furniture, with pay-back terms of longer than one year. \n\nTo avoid problems, never borrow without knowing how and when you will be able to pay off the balance. Also, you should establish an emergency savings cushion for those times when life throws you an unexpected curve."
1091396
You can greatly improve your credit, yes. There is already a good answer on here for this, and remember: STAY DISCIPLINED!!!\n\nYou can do it!
778350
If you've had a checking or money market account with a bank for awhile, I'd start with them.  That's how I had to start building my credit.  Take out a loan and pay it back with the money I got from the loan.  \n\nNowadays, it's tough to get a loan unless your record is spotless or you're getting a house at a rock bottom price.  Good luck.
1089932
Of course, this is exactly WHY you shouldn't allow yourself to GET bad credit.  It is extremely costly, because it forces you to lose out on good opportunities like this.  There's a very high likelihood that you WON'T be able to get credit anywhere.  \n\nHere's what I would consider.  Try some of the high risk credit card lenders.  See if you can get a home-equity line for your home.  You might also be able to depend on 'trade credit' for part of it (foods, etc.), but you'll still need enough to equip the place, and frankly, your choices are very limited due to your past record.  I hope you can find something.  Otherwise, you'll just have to wait 7 years until your credit clears up.\n\nBest of luck to you.
930064
Better credit score! Which means better rates...The amount that you'd be able to put down wouldn't make that much of a difference in your payments, but a better rate means lower payments!
1052309
Try Chase. Or capital one. They both gave me credit cards when I had no credit. Then just use them and pay more than the minimum payment (or pay all of it) and it will help establish your credit. You may also think about asking your financial institution. They may have ways to help you as well.
383094
No there isn't but i work for cell phone company, and i have really bad credit myself, before i worked here i had a cingular GO PHONE. and now that i have work for about every cell phone company, i can say honestly that the Cingular GO PHONE is the best thing out there for the credit challenged. You just need a bank account or credit card. Trust me it the best thing going.
488984
Well the credit background can show you're spending habits.  The lenders want to know if you're a risk for them or not.  So if you have not credit history, it's awfully tough for a lender to make a choice to give you hundreds of thousands of their money.\n\nEven if you were able to get approved, you may get a higher interest rate because to them, you're at high risk.\n\nSame goes with financing a car, private student loans, credit cards, some utilities, etc.\n\nEDIT:\n\nIt is possible to have good credit.  If you pay bills on time and have no negatives on your report, you're still fine.  But a credit card is the easiest way to build credit (and likewise, destroy credit).
26741
If you don't have much of a credit background (I mean no credit as opposed to "bad" credit), a lender will look mostly at your earning power.  That is to say your current income, how long you have had your current job (at least 1 year), and how much of your current income is disposable (how much extra you have after your current bills).  Whatever you have left over is what you can afford for a house.  \n\nI have to say though, that without any real credit history, your chances of getting a loan are low.  Also, be very careful of those who are willing to lend you money, because it will probably be at much higher interest rates, making it all the more likely you won't be able to afford the payments.\n\nFocus on building good credit.  Once that is done, then you can start thinking about buying a home.
330272
Its not easy buying a home with bad credit. Its not easy buying a home with good credit now adays. I say, go through a credit builder and discuss your debt with them. It might take some months or even some years until you get your credit straight before you buy a home.  If you have bad credit now, the house is just gonna make it worse if you don't pay your notes and bills.
1006626
Do you actually have BAD credit after doing nothing, or is it that you just don't have ANY credit because you've never used credit?\n\nIf you just don't have any credit -- you've never proven yourself to be creditworthy and reliable -- then you just have to accept a low credit score for a few years, like everyone else, and although there are ways to establish credit quickly (secured credit cards, etc.) it won't just happen overnight.\n\nOn the other hand, if your credit report reflects negative information that you feel is in error, your next step should probably be a talk with all three of the major credit bureaus (Experion, Equifax, and TransUnion) to figure out why there are negative marks on your report, and to identify possible remedies for these problems.\n\nHowever, you have not provided enough information for anybody trying to answer this question to actually do any good, as the question is very vague.  Good luck, though.
498013
While it will negatively affect your credit it is better than having a charge off or a bankruptcy.  One thing you can do is to pay extra, so that you get out of the program faster.  Once you have completed the payment plan, you should use a credit card with a good history once a month and pay the balance off.  This will show a good use of credit.
666560
The reasons to have good credit are simple. If can affect you in literally hundreds of ways.\n\nGood credit \n\n- Lower interest rates for loans.  Home, Car, etc.\n- Qualify to by a home (FICO score)\n- Employers check credit ratings\n- Housing (Apartments) managers check credit before renting\n- Setting up utility payments (no deposits)\n- School loan rates can depend on your credit\n- It can take YEARS to repair a bad credit history and in the meantime you can be denied credit or end up paying MUCH higher interest rates because of poor credit.\n\nHow do you build good credit?\n\n- In many ways it is advantageous to have no (negative or positive) credit, because you can more quickly obtain new credit.  For example, you can immediately enter most department stores and immediately open an account.\n\nDepartment store cards can then lead to major credit cards, such as MasterCard, Visa, Discover or American Express.  Do not go wild with these cards, however.  Do not keep a balance past the grace period, so remember to pay off your balance each month.  Remember that your goal is to establish a credit history and a strong credit grade.  Maintaining a balance is actually a negative, albeit a minor drag on your grade.\n\nYou should try to limit yourself by maintaining only two department store cards and perhaps another two credit cards.  Do not succumb to the credit card temptation. \n\nSecured credit cards are a great way to establish a credit line whether you have no credit or damaged credit.  Secured credit cards are regularly issued MasterCard or Visa credit cards, which are secured by a deposit.\n\nTo establish a secured credit account, for example, you would set up a deposit account with the issuing bank.  The minimum could be as low as $100, depending on the bank.\n\nYou will then be issued a credit card, with a credit line normally equal to your deposit.  In most cases, you will receive interest on the deposit account.  However, if you ever default on your credit card, the bank can use your deposit to cover their losses.\n\nIt is also a good incentive to control your credit usage and minimize your balance.\n\nBut above all, DO NOT OVEREXTEND YOURSELF, PAY YOUR BILLS ON TIME AND AS CLOSE TO IN-FULL AS POSSIBLE. Avoid splurging and using the card when you can't afford to.
567312
Having a history of good, revolving credit (finger hut, Mervyns, Sears, JC Penney) will help you.  Just use it.  If you buy one thing, once, that won't really help.  I got a card at Mervyns and bought maybe one item every three months.  It helped me.  I had a great credit history but "lack of revolving accounts".
909558
Having no credit can be just as bad as having bad credit, but the good news is, if you have a job, you can get credit.\n\nTry applying for a department store credit card or have someone co-sign for an auto loan. Once you are approved, make your payments every month!\n\nThe important thing to remember is that credit is a privilege not a right. And never use credit as a license to shop!
810407
If you have bad credit get a Eufora Credit Builder Card. \n\nYou can apply here: http://www.goeufora.com/418121496892 \n\nIts $99 for a 24 month agreement for the Elite Level. \n\nIt reports to the credit bureaus that you have an open installment loan and is excellent for your credit. \n\nKeep in mind you can only spend what you load onto it, like a debit card, but it helps your credit!
743938
Experts say it's better to use a credit over a debit card because if your credit card were to get stolen you would report it missing and you wouldn't be charged for what ever the other person used for it. But if someone got your pin number you wouldn't able to prove that you didn't make those charges.