Is No Credit Worse Than Bad Credit? - The Credit Pros

Many Americans prefer to avoid debt amid fears of economic consequences from national debt levels. However, credit is often needed for major purchases, and a good credit score is crucial for obtaining loans. Banks typically require a credit history to evaluate borrower reliability, putting those without any credit at a disadvantage. While bad credit can be mitigated by recent improvements in a borrower's financial situation, having no credit can make securing loans difficult, suggesting that some credit history is beneficial.