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Does Everyone Have Credit?

Jun 21, 2022

Credit is often seen as a necessity in our society. We’re told that we need it to buy a car, a house or even just to get a good job! And for the most part, that’s true. But what if you don’t have credit? Is it even possible to not have a credit score?  

What Is Credit and How Does It Work? 

Credit is a system that allows people to borrow money that they will pay back over time with interest. A credit score is a number that represents how likely you are to repay a loan. It's based on your credit history, including how often you've paid your bills on time and how much debt you have. Lenders use your credit score to decide whether to give you a loan and how much interest to charge you. 

A high credit score means you're a low-risk borrower, which could mean you'll be offered a lower interest rate on a loan. A low credit score could lead to a higher interest rate, or it could mean you won't be approved for a loan at all. 

Credit scores range from 300 to 850. The higher your score, the better. Anything above 670 is considered good, while anything below 580 is considered poor [1]. 

How Do I Obtain Credit? 

There are a few ways to start building credit. One way is to get a credit card and use it responsibly. This means making sure you only charge what you can afford to pay it off each month, and making your payments on time. Another method is to take out a small loan from a bank or credit union and repay it on time. You can also become an authorized user on someone else's credit card, which can help you build credit if they have good credit habits. 

Using Credit Responsibly 

Once you have a credit card or a loan, it's important to use it wisely. That means only borrowing what you can afford to pay back and making your payments on time. If you do this, you'll start building a good credit history, which can help you get better terms on loans in the future. 

If you're not sure how to use credit responsibly, there are plenty of resources available to help you learn. You can talk to a financial advisor, take a personal finance class, or read books or articles on the subject. 

What Are the Benefits of Having Good Credit? 

There are many benefits to having good credit. For one, you'll likely be offered lower interest rates on loans, which can save you money over time. Good credit can also help you get approved for loans and lines of credit, and it can even help you get a job. Employers sometimes check credit scores when they're considering candidates for positions, and a high score could give you an edge. 

Finally, good credit can give you peace of mind. Knowing that you're considered a low-risk borrower can make it easier to sleep at night and feel confident about your financial future. 

What Happens If I Don't Pay My Bills? 

If you don't pay your bills, your credit score will suffer. Late payments can stay on your credit report for up to seven years, and they'll typically result in a drop in your score. If you have a history of late payments, it can be tough to get approved for loans or lines of credit. And if you are approved, you're likely to be offered less favorable terms, such as a higher interest rate. 

Defaulting on a loan can have even more severe consequences. If you default, the lender can take legal action against you, and your credit score will plunge. Defaulting on a loan can stay on your credit report for up to seven years, making it very difficult to get approved for new credit. 

If you're having trouble paying your bills, it's important to take action right away. You can talk to your creditors and try to work out a payment plan. You can also consider consolidating your debts or contacting a credit counseling service. Whatever you do, don't just ignore your bills — that will only make the situation worse. 

How Can Acima Leasing Help? 

If you're looking to shop but don't have a strong credit history, the no credit option* with Acima Leasing may provide a solution for you. Apply with us today! Acima will purchase eligible merchandise up to your approval amount and lease it to you.  With over 15,000 locations and our fast applications, you can have the shopping power you are looking for.

We also offer flexible lease renewal payment options*, so you can get the items you need from the stores you know, without having to worry about using credit.* If you make the number of payments defined under your lease or choose to purchase your stuff early at a discount, it’s all yours! Also, if you no longer need the item you can return it in good condition at any time without further obligation. It’s that easy! So if you're ready to bring home that new sofa, TV, or mattress, shop with Acima today. We'll help you get the things you love – without using credit.* If you still have questions, learn more here or on our FAQ page