What Happens When You Have No Credit Score

What happens when you have no credit scoreHaving no credit can sometimes feel like a challenge, but do you really need to build credit? And what happens when you have no credit score?

Well, if you’re like millions of Americans, you’ve probably heard that you need to build credit. In fact, “You need to build credit so you have a good credit score!” is very common advice. You hear it everywhere: in commercials, from your mom, you name it.

And while your mom means well, it’s no wonder the message has spread.

The advertising budgets of credit card issuers are huge, to put it mildly. (Over $1 billion in 2018 alone, according to Statista.)

Do you think credit card companies are making a profit off people borrowing money, if they’re spending over $1,000,000,000 to promote their products?

I’d say that’s an easy yes. They have a vested interest in making you believe that your 3 digit number matters an awful lot.
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Credit Karma: Get a Free Credit Score and So Much More

How does Credit Karma really work?Do your friends or family track their free credit score on Credit Karma? This free platform is a legit way to monitor your credit, file your taxes, and open a high-yield savings account.

You might be currently paying off debt or trying to build credit. Credit Karma can be one of the easiest ways to improve your finances.

This overview of Credit Karma helps you learn more about their credit tracking tools and other services. They offer many services that you may not be aware of, in addition to offering a free credit score. You can decide if their services can help improve the way you manage money.
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Manual Underwriting Magic: Getting a Mortgage With No Credit Score

Have you ever wondered how to get a mortgage without a FICO score? Manual underwriting could do the trick!Have you ever wondered how to get a mortgage without a credit score? If you’re in decent financial shape, the short answer is to use manual underwriting.

Not many people are familiar with the process of qualifying for a mortgage using manual underwriting, so I’m happy to share Jessica’s story below.

(She got a manually underwritten mortgage when she bought her home earlier this year, and she’ll be telling you all about how that worked shortly.)

But first, let’s get an important term out of the way.

Manual underwriting means someone individually figures out the level of risk involved with giving you a mortgage.

Instead of software automatically checking your credit and using an algorithm to decide whether or not you’re a good risk, a person does so. (Using information you provide to show you’re likely to repay the loan.)

Manual underwriting can be good for people who:

  • have what’s known as a “thin” credit file
  • don’t have a score because they don’t have debt (woohoo!)
  • have a somewhat recent bankruptcy or foreclosure

Now on to Jessica’s article, which is all about her experience with convincing her mortgage broker to go the manually underwritten loan route.
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Improve Your Credit Score by Paying Off Debt: How It Can Help

How paying off debt can help repair your credit and improve your credit score.It’s perfectly normal to be worried about your credit score. After all, you’re constantly told that having a good credit score is important for a huge variety of reasons. It’s also a point of pride for many people.

So what do you do when your credit scores are sinking like the Titanic because you’ve hit the “debt iceberg?”

You don’t have to let your credit score sink to the ocean floor or pay people to do credit “repair”. There’s a simple solution that will greatly benefit both your credit AND you: focus on paying off your debt.

Making consistent, on-time payments that reduce your balance is a surefire way to help repair & improve your credit score.

What is a credit score, and how is it calculated?

Before we get into why paying off debt works to help repair your credit, let’s talk about the kinds of things that make up a credit score. It’s important to know that to understand just how paying off debt can help.
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