I applied for the Disney Visa (for the discounts) and was rejected because my Credit was too good, because I pay all my bills on time with no debt thus according to the reporting agency they use - no credit history so to them I am a bad risk.
You may want to get a copy of your credit report and find out what's on it....because paying off your bills each month does not make you a bad risk. They actually see that as a good risk.....you won't run up bills and not pay, you are responsible in charging and payment your debt.
Having no credit history however does hurt you big time....so if you mean that you don't have a credit card, don't have a mortgage or car loan, in other words you live a "cash only" lifestyle...........then that actually works against you because you have no history of responsible credit payments. Your credit history is blank, like a teen ager just starting out, so to them you are untried.
If that's the case and you live a cash only lifestyle.....IF you want to start to create a credit history so that you don't get denied in the future, you will have to start creating that history. It doesn't mean they're requiring you to go into debt or anything, but they do need to see you are a responsible person. Since they can't see you paying for things everyday and not getting things if you can't pay for them, etc which of course YOU can see and know you are a responsible person.....but they need to see it the only way they have available to them....your credit report.
There are many credit cards available to those with little or no credit history....department stores are usually the easiest to get and don't carry annual fees (after all who wants to pay to prove they're responsible with their money, lol). So next time you pass one of those tables with the free gifts for opening a Sears or Macy's card......apply. Charge a few things and pay them off at the end of the month so you don't pay any fees. If even the idea of having that debt sitting out there bothers you, then realize that most credit cards allow you to make payments on line as soon as the item posts, so you can pay it off within a day or so of charging it. But this will build a credit reputation for you. If you ever intend to purchase a house, a car or any other large ticket item (DVC anyone?)....you will need a credit history/reputation, or will find that you are paying a higher percentage rate. Unfair because you ARE responsible, but it's not something the creditors can SEE, so it's how it is done. Sad but true.
What we do is each payday (for us it's weekly) I go online and pay off the Disney VISA. I charge everything we buy on it all week long so we get the rewards dollars, but by Sunday it's got a zero balance. All my married life this is what we've done and we're constantly getting offers of money to buy cars or do home improvements. We did buy a car last year because our other car died at 220k miles.....and when they ran our credit report it was over 800.....so our little charges and then paying it off each week has built us up an excellent credit rating. And frankly, that rating is what it's all about....if you have no credit reputation you have no rating. Again, sad but true.
Several years ago I worked for VISA and while my job was simply data input, I was friends with many who made the decisions about whether someone would get a credit card or not, and they were always talking about people getting mad at the employee for turning them down when the people had no credit history. And many of them commented that bad credit is sometimes better than no credit. A few late payments but then catching up and never going into default won't get you the best interest rate, but it will get you card with a modest limit....whereas a blank credit report will get you denied.
This obviously won't help you get the Disney VISA in time for the codes, but if you are interested in building a credit history so that next time you apply you won't be turned down, hopefully I've helped you understand the system. Be proud of yourself for not joining the 90% of the country that are in debt to their eyeballs! But build a RESPONSIBLE credit history and then when you do want/need credit it should be readily avaialble to you AND at a great rate.
For instance.....most people are complaining about the high interest rates (in the 20s!!) on the Disney VISA, including people who say they have high credit scores, i.e. good credit....but I'd wager that most of them also have a lot of other outstanding debt that doesn't get paid off each month. This counts against you because VISA worries too much debt and you're one tragedy away from default......get laid off, get sick, etc and there goes the ability to pay debts (and no they don't know that you have savings or other ways to pay it off it that happens, remember they have tunnel vision, all they can see is what your credit report says)....Our Disney VISA interest rate is 10.99, because we are a pretty good bet.....our credit report shows a mortgage that has never had a late payment, and is scheduled to be paid off early (because we make extra payments towards principal each month), a car loan that is also ahead of schedule....and one credit card that is paid off in full each week. They figure if we get laid off we may have difficulty paying on unemployment, but that since they are the only credit card on the block, they figure worst case I'll start running a balance and making minimum payments instead of paying it in full each week....but if I had 5 cards with large balance, I may not being able to make even minimum payments on 5 cards. So while that person is a good enough credit risk to give them a card, it's not with the best rate because they may take a loss later. Unfair, yep, because you have a good steady job, great skills and could find another if you needed, etc....but it's still their tunnel vision talking.
Ok...credit history 101 is finished now. You may return to your regularly scheduled discussions, lol.
