#credit-history

#credit-history

It can be nearly impossible to escape a history of bad credit. Credit is the amount of money you have borrowed and not yet repaid to make large purchases like medical bills, homes, property, school tuition loans, and other types of loans. A credit score is a number that represents your history of loan repayment so future creditors can determine if they will or will not loan you more money.

When buying a home, lenders almost always check your credit history to assess how likely you are to repay the loan. But what if you don't have a credit history at all? Maybe you've never used credit cards, taken out a loan, or your credit profile is too thin to generate a score. If you're asking, "Can you get a mortgage with no credit history?" the answer is yes—though it's more challenging, and you'll need to show lenders your financial responsibility in other ways.

I figured my work ethic and expertise would carry the day. And for a while, they did. But what no one tells you - what I learned the hard way - is that you can be doing everything right, and still be broke.

Downgrading a credit card can help save on fees while preserving credit history, but it's essential to check with the issuer for specific policies.