To make it worse, no credit history equals a score of zero, so it can be worse than just having bad credit.
> Around here, we like to say a credit score is just an “I love debt score.” Think about it. A credit score doesn’t reflect your salary increases, the amount of money in your savings account, or how well you budget each month.
> If someone in your family was to pass away and leave you a million dollars, your credit score wouldn’t change one single point. Your net worth would skyrocket, but your credit score wouldn’t budge. Seems fishy, doesn’t it?
> In other words, a credit score has nothing to do with how well you handle your money. But it does show how well you play around with debt. Your credit score is solely built on how much debt you have, what kind of debt you have, how long you’ve had it, and how you’ve paid on it.
Not at all.
1) no one knows I inherited that money unless I tell them (ok, the bank and the IRS do - the bank can't announce it, the IRS doesn't announce it...)
2) my instant change in net worth does not affect my ability to handle my finances month-to-month
idk man, if I inherited 1M USD, it would definitely affect my ability to handle my 3K USD monthly expense.
Most middle class and up people don't have to do this song and dance. Parents can add you as an authorized user on one of their cards, and you could build up a great score and a fat credit limit just in time for you to max it out during spring break in college.
Seems like a win win to ne.
But you need to pay $300 for this line of credit! What's the point then?
Firstly, opening a bank account almost never requires a credit check. Think about it: what risk is the bank taking on by giving you an account with nothing in it?
Secondly, renting an apartment typically involves a credit check in my experience. I had my father co-sign my first lease to avoid the security deposit (~$1000, 1 month of rent). There is also a separate renter's score (?) that evaluates how "good" of a renter you are in general.
I think no history you are fine to open a bank. But I think if you have bad credit history (like previously bounced checks), you won't get approval for a checking account - or get a very limited account.