Blog / Which is Worse: Bad Credit or No Credit?

Disembodied hand asks the question if no credit is okay

If you're like many young Americans who have never used a credit card, taken out a loan, or otherwise used credit, your credit rating is spotless. But that's not necessarily a good thing.

With a spotless credit rating, at the very least you can prove that you've never made a mistake of any kind related to credit. But some lenders might ask the question: Why have you avoided credit altogether?

In fact, some lenders may prefer customers with poor or bad credit. For instance, Atlas Credit is more than happy to provide bad credit personal loans to customers with lackluster credit scores every day!

If this is your first time confronting this idea, you probably have some questions. Fortunately, we have the answers.

Why is Bad Credit Sometimes Okay?

Most lenders understand that if you have bad credit, it doesn't mean you're totally unable to pay your loans. If your bad credit is the result of missed payments from years past, but you've shown a record of on-time payments ever since, they won't just toss your application into the trash.

Lenders are able to see virtually everything you've done related to credit by looking at your comprehensive credit score. When they're able to understand the factors that led to someone ending up with bad credit, they can weigh whether or not those factors still play into their ability to make on-time payments now.

The biggest problem most lenders have with someone with a blank slate for a credit score is that they'll be forced to take a risk. The gamble they face on finding out whether or not you can pay on time might dissuade them from doing business with you altogether.

How to Grow Your Credit

Remember how we mentioned that Atlas Credit is perfectly fine with approving customers with bad credit for personal loans? You should also know that qualifying for a quick and easy personal loan and paying it off over the duration of the loan can boost your credit score! You'll prove to banks and other lenders that you have a history of successful payments and be able to qualify for larger loans in your future!

Simply stop by your local Longview, Waco, Austin, or Fort Worth Atlas Credit location today or apply online to see if you qualify for a personal loan and watch your credit score grow!


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