What’s better?

[SRT4kid93]

If someone were to apply for a credit card, What would a lender prefer to see ?

1) unscoreable/no history 

2) poor credit score, let's say in the  550-600 range 

[Gunnerboy]

No history is better than poor history.

[FicoMike0]

Depending on the lender, I agree, no history. Better to be unknown than a known bad risk. Predatory lenders, who you should avoid, might specialize in low score clients they can mine for fees.

[FireMedic1]

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@SRT4kid93 wrote:

If someone were to apply for a credit card, What would a lender prefer to see ?

1) unscoreable/no history 

2) poor credit score, let's say in the  550-600 range 

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Least theres a score rather than un-score.

[SouthJamaica]

Both are negative.

As to which is more negative, that can vary with the lender, the product, the algorithm, etc.

[SRT4kid93]

So far that's 2 votes for un score able

1 vote for poorish score

1 vote for it depends.

interesting results  

[NoHardLimits]

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@SouthJamaica wrote:

Both are negative.

As to which is more negative, that can vary with the lender, the product, the algorithm, etc.

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It's important to match the profile to the card product.  With no history, concentrate on "starter" cards.  These can include products marketed to students as well others new to credit (e.g. Freedom Rise).  With poor credit scores, concentrate on "rebuilder" cards but try to avoid the predatory lenders.  Secured cards would be good for either type of profile.

[Thomas_Thumb]

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@SRT4kid93 wrote:

If someone were to apply for a credit card, What would a lender prefer to see ?

1) unscoreable/no history 

2) poor credit score, let's say in the  550-600 range 

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Generally unknown behavior is lower risk than bad behavior. Would it be less risky to have a disagreement with a homicidal maniac or a total stranger?

ChexSystems has 45% of profiles in their system unscored due to lack of data. They receive 9999 as a default.  It is far more likely the unknowns will qualify for new credit than profiles with bad Chex scores.

On the flip side, gangs may seek out individuals with certain types of criminal records. Similarly, preditory lenders may target people with a specific type of poor credit profile.

[SRT4kid93]

@Thomas_Thumb @NoHardLimits @SouthJamaica @FireMedic1 

ok so let me ask you all this.

in your opinion at what point would the bad score start to look better than no score?

for clarification) in my original question the applicant with bad credit was in 550-600 range.

so what if we changed that to 600-650 range. Now the applicant with bad credit doesn't look so bad right? 

so at what score would the bad credit applicant start to look better than the no credit applicant? 

600?625?650?

[NoHardLimits]

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@SRT4kid93 wrote:

@Thomas_Thumb @NoHardLimits @SouthJamaica @FireMedic1 

ok so let me ask you all this.

in your opinion at what point would the bad score start to look better than no score?

for clarification) in my original question the applicant with bad credit was in 550-600 range.

so what if we changed that to 600-650 range. Now the applicant with bad credit doesn't look so bad right? 

so at what score would the bad credit applicant start to look better than the no credit applicant? 

600?625?650?

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There is no simple across the board rule.  It all depends on the lender and the specific card product.  Just try your best to match the profile with a suitable product.