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About LinkBacksMy mother has her house paid off, is in her 70's, and thinks she has good credit even though is not using any. I said for that to happen she would have to be using at least a gas card or some other credit card. Which one of us is right?
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Green Member
- Join Date
- Sep 2011
- Location
- Ohio
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No Credit vs. Bad Credit: Both Just As Bad?
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Platinum Member
- Join Date
- Aug 2011
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- USA
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- 63
According to a Fair Issacs rep in an article/interview I read... I forget exactly where (probably from the FICO website):
If your mother has used credit cards in the past and has built credit in the past, it is entirely likely that those older lines of credit - along with her probably-very-old-mortgage-that-is-paid-off - are still showing/will still show as positive factors in her credit report.
My own father is 60something and he for sure still has 'good credit' points from his first mortgage (first house) being all paid off and on time from way-back-when.
That said: No credit is 'better' than bad credit because at least with NO credit, you have a blank/clean slate. With BAD credit, you have a bad credit history behind you which your score is the consequence of and that bad credit history stays with you for a while.
One person may have a 0 for their score, but that's because they don't have anything at all to score them with.
A second person may have a 450 for their score, which is 450 more than a 0, but their Poor Credit is because they messed up their credit history.Personal Collection:
AMEX: Blue, Macy's (cobranded)
MASTER: Citibank Dividend Platinum Select (non-World version)
VISA: Chase Amazon Signature, Chase (bank issued)
GE: Care Credit (medical expenses), Macy's (store), JCP (store)
Business Collection:
AMEX: Costco True Earnings
MASTER: None
VISA: Chase Ink Cash
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Banned
- Join Date
- Sep 2011
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- Philippines
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- 58
No credit and bad credit are both bad if you are applying for a loan, credit card or any mortgage. Why? Because, if you have no credit, you don't have any credit history or credit score to evaluate your application; if you have a bad credit, it will have a negative effect on your credit record and may cause disapproval of your credit card or loan application.
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Centurion Member
- Join Date
- Jun 2008
- Location
- Smogland
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- 1,399
Exactly. Banks tend to view a clean slate more favorably, especially if you are a young adult.That said: No credit is 'better' than bad credit because at least with NO credit, you have a blank/clean slate. With BAD credit, you have a bad credit history behind you which your score is the consequence of and that bad credit history stays with you for a while.Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed. Regardless, anything I say is my honest opinion.
Current Cards: American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
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