Home Blog You Know Bad Credit Is Bad. But Is No Credit Worse?
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At first glance, a bad credit score seems worse than having no credit. This misconception is because a low score reflects the credit management mistakes you've made. Whether it's for late payments in the past, charge-offs or some other reason, it will show as a bad record. Even if you've improved your credit standing, this negative record will remain in your credit history for at least several years.

No credit means having no history of credit at all. It's a clean slate, with no instances of ever applying for loans from banks or lending companies. The absence of a score reflects a clear record, so does it mean having no credit is better than a bad credit score?

Not really. Many lenders actually prefer customers with bad credit scores to those with no credit at all because having no credit means there's no way for the lending company to know whether you can repay your loans. Without a credit history, proving that you will make timely payments can also be difficult.

Sure, lenders can assess your paying capacity based on the documents they may ask you to provide, such as proof of income. However, they still have no way of knowing if you actually can or will pay what you borrowed. If you end up being unable to pay back what you owe them, that failure will prevent the lender from getting their money and result in your having a low credit score.

What's a Good Workaround for Bad or No Credit?

Whether you have bad or no credit, applying for loans and beginning your journey to a good credit score is still possible. You could try getting a credit card if you're a legal adult with no credit history. For an even more direct approach, you can try applying for a personal loan and establishing good credit.

Atlas Credit accepts loan applications for customers with bad or no credit. Our loans have a fixed amount, which you receive in cash so you don't overspend. We also charge lower interest rates than credit card companies, so there's no need to pay back more than necessary.

Grow Your Credit Score With Atlas 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 the future!

Apply For a Personal Loan Online

Get started addressing your lack of credit history or your low credit score. 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! We have locations throughout Texas and Oklahoma, and our representatives are eager to assist you.

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 any credit-related mistake. However, some lenders might ask why you have 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 results from past missed payments, but you've shown a record of on-time payments ever since, they won't just toss your application into the trash.

Lenders can 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.

What's Wrong With Having No Credit?

Most lenders see having no credit as a bigger problem than having bad credit. The reason for this opinion is that lending companies have nothing to judge you on when they make decisions. You may have great intentions and a good job, but there's no way for the lender to know this.

When weighing bad credit vs. no credit, you can try to make a blank slate work for you. Lenders won't know what to think of someone with no credit history, especially if you are older. Getting a credit card when you become a legal adult is one way to handle this, but many young people find it difficult to control their spending when they receive a high credit line.

You may be better off getting a personal loan to establish your credit. Look for lending companies that offer loans to those with bad or no credit. Borrowing a fixed amount might also be helpful so you can limit the possibility of overspending.

A starter loan offers the perfect way to rebuild credit. Such personal loans do not require collateral. You can take out a small amount that will be easy to pay off over a year or less. By doing so, you give credit monitoring services something to evaluate.

Is Bad Credit or No Credit Worse?Image title

At first glance, a bad credit score seems worse than having no credit. This misconception is because a low score reflects the credit management mistakes you've made. Whether it's for late payments in the past, charge-offs or some other reason, it will show as a bad record. Even if you've improved your credit standing, this negative record will remain in your credit history for at least several years.

No credit means having no history of credit at all. It's a clean slate, with no instances of ever applying for loans from banks or lending companies. The absence of a score reflects a clear record, so does it mean having no credit is better than a bad credit score?

Not really. Many lenders actually prefer customers with bad credit scores to those with no credit at all because having no credit means there's no way for the lending company to know whether you can repay your loans. Without a credit history, proving that you will make timely payments can also be difficult.

Sure, lenders can assess your paying capacity based on the documents they may ask you to provide, such as proof of income. However, they still have no way of knowing if you actually can or will pay what you borrowed. If you end up being unable to pay back what you owe them, that failure will prevent the lender from getting their money and result in your having a low credit score.

What's a Good Workaround for Bad or No Credit?

Whether you have bad or no credit, applying for loans and beginning your journey to a good credit score is still possible. You could try getting a credit card if you're a legal adult with no credit history. For an even more direct approach, you can try applying for a personal loan and establishing good credit.

Atlas Credit accepts loan applications for customers with bad or no credit. Our loans have a fixed amount, which you receive in cash so you don't overspend. We also charge lower interest rates than credit card companies, so there's no need to pay back more than necessary.

Grow Your Credit Score With Atlas 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 the future!

Apply For a Personal Loan Online

Get started addressing your lack of credit history or your low credit score. 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! We have locations throughout Texas and Oklahoma, and our representatives are eager to assist you.

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