Realistically, just about everyone needs to borrow money at some point. But as you probably already know, lenders examine your credit history in order to determine your creditworthiness. But what if you don’t have a history for them to examine?
The most common way to establish your credit history is by using a credit card. But recently, more people (especially young ones) are moving away from plastic. In fact, recent data from FICO found that 16 percent of 18 to 29-year-olds don’t have a credit card at all—an increase of nine percent from 2005. So while it’s great that these consumers are avoiding debt, they can’t use their credit card habits to build—or improve—their credit history.