4 ms·

That's not quite accurate. Having no credit history is typically a flag, not having no current debt.

by rollo_tommasi 13y ago

nraynaud 13y ago
I don't get the difference, can you detail please?
- eldavido 13y ago
  (Good) credit history happens from a repeated pattern of meeting one's financial obligations, including mortgage payments, utility bills, student loans, car payments, etc., and not doing financially reckless things like overdrawing bank accounts, skipping town, etc. Generally one needs to have owed money to have a credit history, but this isn't the same as not having debt.
  - nraynaud 13y ago
    but isn't the fact of having never borrowed money, and have always saved before buying stuff even safer than taking any obligation whatsoever? also, paying your phone bill on time gives you a good credit rating?
    - ImprovedSilence 13y ago
      >> paying your phone bill on time gives you a good credit rating I don't know about phone bills, but electric and gas bills, yes. Also, so does being signed to a lease and paying rent. And as stated above, just having a credit card, even if you only charge like $20/month and pay it off every month will help tremendously.
      - lawnchair_larry 13y ago
        Neither of those are true actually. Phone companies check your credit, but they don't report back, unless it's negative information due to collections. Neither does paying rent. You only get positive information on your credit report for loans, credit cards, lines of credit.
- gyardley 13y ago
  No current debt could be you having a credit card, using it to buy groceries, and paying the balance off every month. Your credit score will be fine. No credit history could be you never having a record of having a credit card, because your activity in your country of origin isn't tracked in the United States. (When I moved here, that was still a blessing, but I digress...)
- Jare 13y ago
  An empty history is a blank piece of paper, whereas one with negative records is stained for years. When you have no credit history, lenders can't form an opinion on you. However, you can build a history with only positive records by buying ever increasingly expensive stuff; for immigrants, a progression like car+apartment lease + furniture -> big TV/thing -> car -> house is common. (I never got up to the house part, but as soon as I had a credit card, I made sure I paid EVERYTHING with it)
  - nraynaud 13y ago
    This mindset is slightly frightening to tell the truth. 33 years without debt, and having to give money to the bank because people are suspicious of purely basic financial responsibility. I mean, taking a job is not borrowing money, you're paid after the period of work, you're the creditor, the rent is paid in advance, you're still the creditor. Does having savings counts positively in the credit rating?

That's not quite accurate. Having no credit history is typically a flag, not having no current debt.

nraynaud 13y ago

I don't get the difference, can you detail please?

eldavido 13y ago
(Good) credit history happens from a repeated pattern of meeting one's financial obligations, including mortgage payments, utility bills, student loans, car payments, etc., and not doing financially reckless things like overdrawing bank accounts, skipping town, etc. Generally one needs to have owed money to have a credit history, but this isn't the same as not having debt.
- nraynaud 13y ago
  but isn't the fact of having never borrowed money, and have always saved before buying stuff even safer than taking any obligation whatsoever? also, paying your phone bill on time gives you a good credit rating?
  - ImprovedSilence 13y ago
    >> paying your phone bill on time gives you a good credit rating I don't know about phone bills, but electric and gas bills, yes. Also, so does being signed to a lease and paying rent. And as stated above, just having a credit card, even if you only charge like $20/month and pay it off every month will help tremendously.
    - lawnchair_larry 13y ago
      Neither of those are true actually. Phone companies check your credit, but they don't report back, unless it's negative information due to collections. Neither does paying rent. You only get positive information on your credit report for loans, credit cards, lines of credit.
gyardley 13y ago
No current debt could be you having a credit card, using it to buy groceries, and paying the balance off every month. Your credit score will be fine. No credit history could be you never having a record of having a credit card, because your activity in your country of origin isn't tracked in the United States. (When I moved here, that was still a blessing, but I digress...)
Jare 13y ago
An empty history is a blank piece of paper, whereas one with negative records is stained for years. When you have no credit history, lenders can't form an opinion on you. However, you can build a history with only positive records by buying ever increasingly expensive stuff; for immigrants, a progression like car+apartment lease + furniture -> big TV/thing -> car -> house is common. (I never got up to the house part, but as soon as I had a credit card, I made sure I paid EVERYTHING with it)
- nraynaud 13y ago
  This mindset is slightly frightening to tell the truth. 33 years without debt, and having to give money to the bank because people are suspicious of purely basic financial responsibility. I mean, taking a job is not borrowing money, you're paid after the period of work, you're the creditor, the rent is paid in advance, you're still the creditor. Does having savings counts positively in the credit rating?