My friend, B, has a steady job with a good income. In her mid-20s, she has no debt. She has paid all of her regular expenses on time and makes sure to set aside money for savings. She’s a perfect example of someone with good financial sense.
There’s just one thing that’s driving her bonkers lately: She has no credit score. Not a low score — no score at all. She doesn’t have credit cards and hasn’t taken out any loans that would show up on a credit report.
She has made it a point to live within her means, and wanted to avoid the perils of debt.
Yet, she’s finding that she is having a difficult time renting a car, obtaining a cheap cell phone/contract, and more, simply because she doesn’t have a credit history. Sometimes, people without credit histories find that they are paying higher car insurance premiums.
B has no desire to take on debt, but she certainly would appreciate less hassles at the car rental place. She has applied for credit cards and is being turned down. Even store credit cards and a card from her own bank are sending her rejection letters.
Maybe there’s a credit card she can get (probably one with an annual fee or something). I hope she won’t have to find a co-signer to get a credit score rolling. Suggestions, anyone?
A person with no credit is not the same as a person with bad credit. And yet, those with no credit history are being lumped in the same category.
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