Do you know what the differences are between having bad credit and having no credit at all? There are various nuances to each state of financial affairs that can be confusing, so if you’re not sure about the differences between no credit vs bad credit, read on and let Money Ladder become your guide.

Having No Credit

Having no credit is at once straightforward and somewhat complex. You end up with no credit at all by simply never expending funds on things that require credit. You might find yourself without credit if you’ve never used credit cards, but also if you’ve never taken out a loan for a car payment or put money down for an apartment rental.

Many might think this is the preferable state to be in when it comes to no credit vs bad credit, but there’s a little more to it than that. If you’ve never had a line of credit extended to you before, credit and loan companies have no idea if you’re trustworthy with their services or not. For this reason, it can sometimes be harder to get loans if you have no credit score than if you have a subpar one!

If you find that having no credit is hurting your upward mobility, you can apply for a credit card and start making small payments on time to let creditors know you’re trustworthy. No one truly wins in the battle between no credit vs bad credit, but you can ameliorate the situation one payment at a time.

Having Bad Credit

People are hit with a bad credit rating when unpaid bills and credit loans begin to stack up over time. A credit report covers everything from payments to your credit card bill to times you’ve missed the rent and overdrafted your account, and too many nonpayments stacked into even one area can cause the whole thing to look bad. A low credit score can look as bad as no credit at all if nothing is being done to take care of it.

Fortunately, when it comes to no credit vs bad credit, lots of credit and loan companies are inclined to be charitable to people who are in the process of actively paying off their loans. Since credit companies still want as many customers as possible, they’re likely to keep your line extended as long as you’re paying them off with reasonably swift and sizable numbers every month. Having bad credit isn’t the financial death sentence it might seem like at first.

Solving (and Preventing) Your Credit Woes

Ultimately, you don’t want to come down on either side when it comes to the war of no credit vs bad credit. So what can you do to keep either situation from happening to you? Here are a few handy tips: 

  •     Don’t take out loans or use your credit card unless you absolutely have to. It’s better to go without for a little while and keep your credit in a manageable state than have it backfire on you when you need it most.
  •     No credit vs bad credit can be easy to solve simply by having good credit. We’re not being dismissive, either: having good credit to start with will give you a better safety net in the event that you have to make a late payment or two.
  •     Find cards and payment centers that have low interest rates, so that you don’t end up spending more on your repayment than the original expense in the long run.
  •     Don’t give up! Even if you have no credit or your credit score isn’t in fighting shape, making timely repayments will help your creditor smile on you more easily the next time you need a loan.

Choose Money Ladder Today

You can be the winner in the fight between no credit vs bad credit when you choose to work with Money Ladder. We provide information on how you can become debt strong and more that will help you not only to alleviate your money woes in the present but make sound financial decisions for the future. Whether you’re the head of a family in the middle of a debt crisis or a small business owner looking to safeguard your stocks, Money Ladder’s Client Success Specialists can give you the tools and knowledge you need to bring your financial situation to the next level.

To speak with a member of our team and learn more about how to arm yourself in the battle of no credit vs bad credit, call us at 1-888-585-8492. If you have no credit, or you’re trying to protect or improve the credit score you’ve got, you can’t go wrong when you get in touch with Money Ladder today.



* ​Please note that all calls with the company may be recorded or monitored for quality assurance and training purposes. *Clients who make all their monthly program deposits pay approximately 70-75% of their original enrolled debts over 12 to 60 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete their program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period of time. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Our service is not available in all states and our fees may vary from state to state. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Depending on your state, we may be available to recommend a local tax professional and/or bankruptcy attorney. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating. The use of debt settlement services will likely adversely affect your creditworthiness, may result in you being subject to collections or being sued by creditors or collectors and may increase the outstanding balances of your enrolled accounts due to the accrual of fees and interest. However, negotiated settlements we obtain on your behalf resolve the entire account, including all accrued fees and interest. ​If you have any questions or comments about our disclosures as outlined above, you can contact us at: