There are a lot of myths surrounding credit scores and you need to ignore them! A good credit score is not a reflection of your financial health.
I have “thin” credit is how they put it. In otherwords, because I move often (change states) and I don’t have credit cards, it is hard for the credit score companies to rack up good data on me. I have been told repeatedly that I can’t get insurance. Well, I have insurance thru two different companies on two different vehicles. I have the state minimum required because my vehicles are “older”. I have Geico for my 1995 Jeep and National General for my 1986 Blue Bird (self converted school bus/RV). My rates seem to be about the average that others (in debt) pay. So the “highter rates” thing looks to also be a myth. But then, I have noticed that a lot of things that people “say” or “heard” are myths.
I suspect you would get lower overall rates with a ‘multi-car’ discount from one company. I realize that is a separate issue from your point, but it is probably worth looking into.
Very few insurance companies will insure my bus. It’s just one of those things. A School bus is safe enough to haul the kids to school but they feel they aren’t safe when not filled with kids. National General is one of the few who will insure a former schoolbus. And at that they won’t insure if someone lives full time in the converted bus.
I GUARANTEE you the company that insures the bus will insure your other vehicle.
So, how does one not have a credit score after having one forever?
So, how does one purchase a home with no or a low credit score? They can’t. I am a big believer in home ownership for “most” people. I disagree that you don’t need a credit score. As a real estate agent, I feel you cannot even rent a good home without GOOD CREDIT SCORE. Virtually all landlords are pulling FICO scores. You MAY have limited success renting an apartment in a large complex with no credit score, but you will not find many houses that will accept someone with poor or no credit.
You can buy a house without credit, you would just need to save up for a larger down payment. A lot of people don’t like the idea of the work it takes to live without credit because it involves waiting for a lot of the things we want now, but it is possible.
My husband and I are renting a home in a new state (moved out here due to a new job) that we just moved into. We have no credit card debt and our scores are slowly becoming 0. Our landlord wanted to run our credit score but we told him our situation and he became super happy to give us the keys as soon as we told him that we were willing to pay the entire lease term upfront plus a pet deposit and the security deposit. So you can rent without a credit score. Note: we are also building our new home, we are planning on putting down 20% and getting a 15- year mortgage. Again, with little to 0 credit score.