Guilty until proven innocent.

[FixMyCredit1992]

Why is it that people with no credit (not bad credit, just a thin file), have a very hard time getting credit. They usally have to be listed as an AU or get a secured card.

I don't think it's fair. Everyone should be given a chance. It seems odd for the lenders to look down upon someone with no credit the same way they do someone with bad credit.

[Apinzon2374]

I don't think it's lenders looking down at anyone. They are just trying to protect themselves by not taking a risk on someone who may not pay them back.

It does kind of suck but at least there are always alternatives so that you can build credit and show you deserve an unsecured CC.

[JediNeo]

+1 I don't feel they looking down upon new applicants, it's just that they have nothing to base their judgements on. If I asked you to loan me $500 without any collateral would you do it?

[09Lexie]

Credit lending is business and not personal.  A computer is deciding approved or denied  and it's not meant to look down or be demeaning.  Obtaining and building good credit takes time.  

My parents had very good credit, never late, no bks, liens etc and lived within their means. I would not expect, if I was starting out in the credit world to be given the same lines of credit and terms as they had on their CR's,  

Like anything else, you appreciate the return better if you have to work for it; I'm sure that if everyone was given $20k CL's on their first card it would not resonate the same as earning that CL through building a solid credit profile. 

[Gunnar419]

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@FixMyCredit1992 wrote:

Why is it that people with no credit (not bad credit, just a thin file), have a very hard time getting credit. They usally have to be listed as an AU or get a secured card.

I don't think it's fair. Everyone should be given a chance. It seems odd for the lenders to look down upon someone with no credit the same way they do someone with bad credit.

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Do you think it's fair of you to demand that businesses (and ultimately their individual shareholders) give you both trust and money that you haven't earned yet?

AU status, secured cards and co-signed loans allow you to prove yourself. They are the CHANCE a beginner needs. Prove yourself first and you'll earn good credit opportunities.

[takeshi74]

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@FixMyCredit1992 wrote:

Why is it that people with no credit (not bad credit, just a thin file), have a very hard time getting credit. They usally have to be listed as an AU or get a secured card.

I don't think it's fair. Everyone should be given a chance. It seems odd for the lenders to look down upon someone with no credit the same way they do someone with bad credit.

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How are you determining the "usual" case?  Based on forum postings?  My first cards were unsecured.  I didn't have a secured card until I had a BK and had to rebuild.

As stated above, it has nothing to do with "looking down" on anyone.  It's a business and creditors, understandably, want to minimize risk when extending credit.  How do you propose that creditors minimize risk yet give those without credit a chance that is different from the current approach?

[killer_queen229]

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@FixMyCredit1992 wrote:

Why is it that people with no credit (not bad credit, just a thin file), have a very hard time getting credit. They usally have to be listed as an AU or get a secured card.

I don't think it's fair. Everyone should be given a chance. It seems odd for the lenders to look down upon someone with no credit the same way they do someone with bad credit.

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I think it's fair. They want to make sure they lend to people who will pay them back and credit history shows that. Most people had to start out at the bottom and make their way to the top. I could not even get a store card until I had a secured card. 

[FinStar]

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@killer_queen229 wrote:

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@FixMyCredit1992 wrote:

Why is it that people with no credit (not bad credit, just a thin file), have a very hard time getting credit. They usally have to be listed as an AU or get a secured card.

I don't think it's fair. Everyone should be given a chance. It seems odd for the lenders to look down upon someone with no credit the same way they do someone with bad credit.

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I think it's fair. They want to make sure they lend to people who will pay them back and credit history shows that. Most people had to start out at the bottom and make their way to the top. I could not even get a store card until I had a secured card. 

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+1

OP - while it can be a challenge to build or rebuild credit, it does and will take time so you can't take it personal.  All lenders function on a business relationship, they're not "looking down or snubbing you".  Take emotion out of the equation and you'll get a different perspective when paving your own way to building/rebuilding your credit.

[tld409]

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@FixMyCredit1992 wrote:

Why is it that people with no credit (not bad credit, just a thin file), have a very hard time getting credit. They usally have to be listed as an AU or get a secured card.

I don't think it's fair. Everyone should be given a chance. It seems odd for the lenders to look down upon someone with no credit the same way they do someone with bad credit.

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I hear what you are saying.  When you are starting out in college, they throw credit card apps. and approvals at you.  If you don't start establishing credit then, it is very hard to start later with out taking the AU and/or secured route.

 Unfortunately, I ruined my credit after college then had to rebuild. As I cleaned up my credit, it was not to hard for me to get approvals. 

[p-]

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FixMyCredit1992 wrote: Why is it that people with no credit (not bad credit, just a thin file), have a very hard time getting credit. They usally have to be listed as an AU or get a secured card...  I don't think it's fair. Everyone should be given a chance. It seems odd for the lenders to look down upon someone with no credit the same way they do someone with bad credit.

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It's more accurately described as risky until proven trustworthy.  But to be fair, people with no credit like college students, etc. have historically qualified for smaller limit cards that those with bad credit can't.

I would challenge you to put your money where your mouth is.  Go to an online lender like proper.com and put up a hundred or a thousand of your own dollars.  Be honest with yourself; are you more comfortable choosing borrowers that have a history of repayment, or new users with no history at all?  

Go ahead and make the loans, and enjoy the returns.  After a year of doing this with your own money, do you think you will feel the same way?  If it's your money on the line, are you still willing to give new borrowers a chance?