null How Do I Know If I Have Bad Credit or No Credit?
You’re looking to buy a car and decide to pay a visit to your local
dealership. You’ve already done the research and set a budget for the vehicle you’d like to purchase.
You’re excited about buying a car until the dealer pulls your credit
report for vehicle financing — you’re denied and unable to move
forward in the car-buying process. Why? Well, there are a couple
common reasons why your credit approval may have been denied, such as:
You have bad credit, or
You have no credit history established
But how do you know if you have bad credit or no credit? First, you
should understand what having bad credit or no credit means.
Understanding Bad Credit and No Credit
When someone has bad credit, it either means they have a poor history
of paying their bills on time or they owe too much money. There are
many financial circumstances that can occur and result in a person
having bad credit, including a job loss, a poor economy or
mismanagement of funds (i.e. missed or late bill payments, maxing out
credit cards, defaulting on a loan, filing bankruptcy, foreclosure on
a home, etc.).
When someone has no credit history established, it simply means they
don’t have a history of borrowing money within the last seven years. A
first-time car buyer who recently graduated from college is an example
of someone who may have no credit history.
Bad credit or no credit is oftentimes reflected in a low credit score
which, according to Consumer Affairs, generally falls under 629 on a
300-850 scale. Traditional finance companies are typically wary of
lending money to people with credit histories reflecting bad credit or
no credit because they are considered less likely to make timely
payments in the future.
In other words, people with bad credit or no credit are considered to
be higher risk to lenders. Fortunately, there are finance companies
like Credit Acceptance that offer credit approval for vehicle
financing to everyone, regardless of their credit history.
How to Find Out If You Have Bad Credit or No Credit
Checking your credit report is the most effective way to determine
whether you have bad credit or no credit. It includes your personal
information, credit account history, credit inquiries and public
records (including prior bankruptcies and accounts that have been sent
If you have bad credit, your credit report might show late bill
payments, repossessions, delinquencies, bankruptcies and/or
foreclosures. If you have no credit, your credit report won’t show any
accounts because you have don’t have a credit history established. You
are able to check your credit report for free once every 12 months
through the three major credit bureaus — Equifax, Experian and TransUnion.
Are you someone with bad credit or no credit who is currently in the
market to purchase a vehicle? If you need credit approval, one of our
enrolled dealers can help. Simply fill out the Start Your Credit
Approval form on our website to get connected with three
enrolled dealers near you!