The Repercussions of No Credit History in Your Life

If you don’t have a credit history, then there are numerous financial challenges that you might face in the coming time.


If you are planning to borrow money in order to fulfil your financial needs, then you should know the fact very clear that credit score is most probably the first thing that most lender will see before accepting your request. It actually helps the lenders define your creditworthiness so the higher the score is, the better will be the chances of getting approval.

However, many people especially the youth who have just passed out from their college doesn’t have a credit history which means they have a zero credit score. Often, immigrants who have left their native country and have come to a foreign land will also be considered a person with zero credit history for that particular country. Well, this might not seem to be a big problem in the starting but if continued for a long time, it can have a severe impact on your financial life. Here, in this blog, we have discussed how having no credit history can affect your financial life. So, let us get started.

  1. Finding a home will become difficult

People who don’t have any credit history or with zero credit score realise its importance when the property dealer whom they contacted for the home asks to check your credit history. Yes, you heard it right! Today, there are many landlords and real estate dealers who check the credit profile of the person before giving the property on rent. Thus, if you are credit invisible, then your application might be rejected straightaway. Yes, there will be still a chance to get a home on rent as there are landlords who will accept your request even if you don’t have a credit history, but chances will be certain that you will be charged a hefty fee. Now, if you don’t have the adequate fund right now, then you can seek the help of a reputed direct lender who offers bad credit loans with no guarantor and no credit check.

  1. You will have to pay a deposit in advance for basic utilities

Even if you are lucky enough to find a house, the chain of difficulties doesn’t end here. The utility providers will perform a credit check before providing you with their facilities and after finding that you don’t have any credit history, you will be asked to pay a deposit in advance in order to get these necessary facilities. These basic utilities consist of:

  • Water
  • Gas
  • Power
  • Internet
  • Trash

These are the items that you cannot live with certainly, so you will have no other option than paying the deposit.

  1. Borrowing will become more expensive

There is no full stop to financial needs certainly and you will come across situations where you will need to borrow a debt. However, you should know that most of the lenders demand a credit check in order to approve the loan and even if you get approval, you will be charged a higher interest rate as compared to others. However, if there is an urgent need of financial assistance, then you can go for no credit check loans without guarantor which you can get immediately without any inconvenience, but make sure to clear things with the lender so that you won’t get any surprise fee at the end of the repayment time.

  1. Difficulty in getting credit cards

Having a credit card can be really helpful at times when you are need of immediate funding. Not only this, but it can also help in building your credit score provided that you don’t exhaust your card. Many credit card agencies provide several benefits to the users in the form of cashback, travel reward and even 0 % APR. But as you don’t have any credit history, you will not be able to enjoy any of these offers.

So, these were the consequences that you can face when you don’t have a credit history or zero credit score. Thus, it is important that you get started financial activities that can help you fill your credit profile.

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