My wife and I have always tried to keep our credit history pretty clean.  Sure, there have been a few potholes along the way, but for the most part, we have taken great care to build up our credit.

I got to thinking about credit history recently because my youngest daughter and son-in-law are working towards purchasing a home.  They are also trying to get a vehicle, as their van just died on them.  Now, they were always under the impression that both of them had sort of bad credit.  My daughter had a great deal of student loans that remained unpaid. My son-in-law had other issues relating to past bills.

However, when they went to a car lot the other day in order to apply for financing, the salesman informed them that neither of them had bad credit. Rather, they both had no credit. 

Apparently, my son-in-law’s issues had all been resolved, unbeknownst to him. As for my daughter’s student loans, those came off of her credit report when she was approved for disability.

The “no credit” status, has already caused them to in be turned down for a car loan. Another car lot offered a loan, but at a 26% interest rate, which would not have been very desirable. 

Moreover, apparently a “no credit” status causes difficulties in obtaining any mortgage lender for a home. They inquired about obtaining an online bank savings account in hope of obtaining a mortgage.

With the economy in the shape that it is, real estate and car dealers, it should be a good time to buy. You would not think that interest rates would be so high. These are questions that you hear on television and newspapers all the time. Even places, (if you want them) that will help you, no credit or bad credit. Mortgages selling for cheaper than in years back.

We have a problem with gas prices, people having to sell their homes and people looking for jobs. Something does not sound right. There has to be a solution to these problems.

The car lots are full and it sounds strange they are not working with you to buy a car. A home is more understandable since there is more to it then just signing a piece of paper and giving them some money. Something needs to be done to help people of all kinds.

I wonder why having no credit is worse than having bad credit? It is the unknown factor? Does it really make much sense? If lenders were able to take a chance on people who have had no credit records, the lenders might often be pleasantly surprised, probably more often than they do be with people who have had bad credit in their past.

Reach Paul R. Harbaugh at prharbaugh@hotmail.com