Credit is an integral part of modern society. People use it to apply for homes, loans, credit
cards, and much more. Unfortunately, there is a large percentage of the population that has little
credit or no credit at all.

Credit reporting agencies have seen quite a bit of success in marketing their products to a
variety of industries. Nowadays, credit checks are a procedural standard throughout various
aspects of life.

Not having credit or having a very low credit score can be devastating for several reasons.
Come with us as we look at some of the main disadvantages of lacking credit.

Credit Becomes Unattainable or Expensive

Unfortunately, qualifying for credit means having a credit history. Lenders like seeing
responsible spending and borrowing patterns from the consumers they lend to. They might not

The Main Disadvantages of Not Having Credit

take the risk of extending a consumer credit if there is no credit history to analyze.
The major problem with a consumer not having a credit history or a lack of credit history is that
access to what many people see as “mainstream credit products” is barred.

For this reason, consumers without credit often have to turn to alternative financial service
providers, such as pawn shops, payday lenders, or check-cashing shops. The cost of these
alternative credit products is often much higher than the cost of traditional products offered by
lenders or banks. Not having credit can put you in the hole when you eventually need to apply for a credit card or
loan.

Housing Can Be Difficult To Find

When you rent a home or apartment, you will likely have to go through a credit check. Landlords
often reject tenants who have low credit scores or no credit scores at all.

Of course, there are some landlords who will accept a tenant without a credit history, though it is
often a much larger risk for them. For this reason, these landlords often have tenants pay for
multiple months of rent upfront or ask for a larger deposit at the beginning of the lease.
Insurance Becomes More Expensive

When an insurance company decides on rates for adults, they typically use credit scores as a
deciding factor. This goes for both home and auto insurance. An insurance provider that sees a
low or non-existent rate will often charge more based on the risk factor.

Building Credit With Tradelines

The influence of tradelines on a credit score can shed a bright light on an adult consumer
without credit.

Here at Personal Tradelines, our goal is to help our clients find the right tradelines for their
needs while providing them with all of the necessary knowledge and information so that they
can make the best decision for themselves.

We have a successful track record and a company policy built on reliability that extends to each
and every one of our customers. If you are ready to start your journey to better credit, please make sure to get in touch with us
today.