Need to have credit
Credit zero is a situation whereby an individual has no credit history; he or she has never had credit or used a credit card. Financially this may seem good, but in real sense you need credit for acquisition of various goods and services. A credit history enables credit companies to evaluate your credit worthiness. If you have a credit zero score, there is no credit company that will be willing to offer you credit. This thus makes seeking credit a very hard venture, because you do not have a credit history and no one is willing to help you get out of your credit zero situations.
Lender requirements to earn credit
Since you have never used credit, lenders will need to use other means to assess your credit worthiness. Your bank accounts information, job history, assets and utilities under you and residence history will used to determine if you are a credit risk. For bank accounts, your account history will be very vital to you getting credit and coming out of your credit zero state. Your job holding ability also will show your creditors how long you may be linked to a steady source of income to enable you earn credit. Utilities under your name will help creditors to assess your purchasing and payment period and process. Residence history will enable them to know if you move or have permanent residence, owning a home carries a lot of weight that can boost your credit earning chances and remove you from your credit zero status.
Improving your banking activities
In your quest to improve from credit zero state to a good credit score, you can help yourself in this process by opening a savings account. Opening a savings account is helpful to you by; when you have a savings account that is well running; it points out to the credit company that you can manage money. Although bank accounts are not used to determine your credit score, lenders can use this information in giving you credit. Creating and establishing a good relationship with your bank is also very vital if you want to come from a credit zero score. If possible, do some business with your bank. Whenever you are making any credit applications list the business and activities that you are doing with your bank, Lenders will assume that bank cannot do business with a client who is not credit worthy, this thus increases your chances of earning credit.
Tips on getting credit
Be patient when you want to come out of your credit zero situation, this is because getting credit and creating a worthy credit history takes time. There is no shortcut that gets you from a credit zero score state to a score of 720 or above. Remember that your credit score is a combination of very many factors such as credit timeline, repayment period and other factors. Finally, as it is very important and crucial to build and develop your credit history, it is also wise to make sure you have good credit as you seek tom come out of your credit zero state.
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