Life without a credit history
Life without a credit history can be difficult if you want to get a loan, rent an apartment, or (in some cases) apply for a job. While I don’t agree with this, credit reports are pulled under so many circumstances these days that not having a credit history can be detrimental to you.
Landlords may be unwilling to rent to you if you have not shown a history of being able to pay your bills. You may have to rely on personal references and income verification alone, but those may not be enough for a potential landlord since they can be so easily faked.
If you apply for a job and your prospective employer sees that you don’t have a credit history (particularly if you out of your teens or early twenties) they may feel that you are irresponsible. A positive credit history may actually be required for certain types of jobs.
Finally, if you want to buy a car or house, unless you can go through a manual underwriting process, you may find doing so nearly impossible without a decent credit history. You’ll probably need to have a cosigner, and if you don’t know anyone willing to put their own personal credit and finances on the line for you, you may be in trouble. Interest rates may also be higher. You can avoid these circumstances by building credit in a responsible manner. You may need to start out with a secured credit card or a loan from a credit union that knows you, but using credit wisely and responsibly can make your life much easier.
