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Anonymous
Anonymous asked in Business & FinanceCredit · 9 months ago

Can I get bad credit if I have no credit?

I got a letter from the VA saying they will report my debt to the credit reporting agencies, which will negatively affect my credit and credit score. Can this make my credit score a negative If I have no credit score ? I plan on paying but cannot at the moment

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  • 9 months ago

    When a creditor says that their report will have a "negative effect" on your scores, it simply means it will drop a bit. That doesn't necessarily mean you will have no credit (or even bad credit).

    Keep this in mind. If this is reported on your credit report it will not go away, even if you pay it off. Once paid all they are required to do is show that the debt is paid, but it will still be a negative item on your report. So you want to try and keep it off if possible.

    Try contacting the creditor and explain your situation. Tell them that you will pay, and give them a payment schedule. Tell them that if they agree with your plan, they must agree to not report this on your report. If they refuse, demand that once paid they must contact the credit agency and have the item deleted. Yes, they can legally do that!

    If they still refuse, I have told my clients to not pay the debt. Why would you do that and still suffer with a bad credit score? The item will be dropped after a few years anyway.

    Remember, if they agree with your plan, GET IT IN WRITING!

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  • 9 months ago

    Yes, you can get bad credit even if you have no credit. Credit scores don't actually go below zero, but when you do have credit, your score will be lower because of this. It will be at least 7 years before you can have as high a score as you would have had without this.

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  • Shay
    Lv 7
    9 months ago

    Yes - you can get bad credit.

    If there is a bill you owe that you have allowed to become delinquent - then it will eventually end up reported as a delinquent debt to the credit bureaus. You would then have a credit history showing only bad debt with no good history to help. Your score would be very low - but you would have a score.

    I googled it and the lowest credit score starts in the 300 range. You wouldn't actually get a "negative score". You would have a negative report on your score.

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  • Judy
    Lv 7
    9 months ago

    If you're at least 18, yes.

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  • Anonymous
    9 months ago

    What is the debt? How did you incur if with no credit?

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    • Never
      Lv 7
      9 months agoReport

      You took a loan or accepted money you did not qualify for? And they want you to pay it back? If so, yes, you owe it and it could hurt your credit.

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  • 9 months ago

    If you have no credit, you will now have bad credit. The only debt ever reported to any credit agency is delinquent...not a good look.

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  • Anonymous
    9 months ago

    < Can I get bad credit if I have no credit? >

    Yes is the short answer.

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  • 9 months ago

    There is a minimum score; I think it's 500. So you can't go negative. The max is 850 by the way. No clue how those numbers are generated as Espiron and others do not disclose their proprietary algorithms.

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  • Stoo
    Lv 7
    9 months ago

    You have gone from no credit to bad credit, which is worse. Make a payment plan with them immediately - they'd rather deal with you directly as credit recovery agencies buy debt at a fraction of the cost, so they'll make more money if you pay them over time. But reporting to credit agencies mean you'll be in the hole for years, unable to get even basic loans even for secured purchases like cars or property, much less anything else.

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