When you apply for any loan, the lender will check your credit report. If your credit score is low or you do not have any, there is a huge chance that your loan application will be rejected. Read on to learn the implications of low credit score and no credit score.
Similarities between the Two
Bad credit and no credit mean that you do not meet an important criterion to be considered for a loan. When a lender receives your loan application, he checks your credit score first. The lender would like to see a good credit score, which will give him confidence to lend you the money. A person with a bad credit score means they is not trustworthy and may not be able to repay in a timely manner.
