Would someone not having a credit score be a red flag?

[Anonymous 1]

This guy I have been dating told me he doesn't have a credit score. He has never used credit. Part of me thinks it is a massive red flag but on the other hand the fact that he owns two homes, multiple cars, and other fun things all with no debt doesn't actually seem like a bad thing.

Opinions?

As it happens, I've never needed to buy things on credit - I inherited several properties.

You should be aware that, if the guy you're dating comes from old money, he is going to be in the habit of not revealing exactly how wealthy he is. Don't hold that against him. It isn't that he doesn't trust you. It's that he's been taught, from birth, to keep it confidential and share only as much information as a particular person 'needs to know'.

I'd suggest asking if his family has any traditions about having formal engagements.

He does not come from old money. He's just a hard working guy who doesn't like to buy things he can't afford outright.

[Anonymous 1]

That is so weird to me. I've never paid a deposit for utilities.

He is great with finances he just never wants to buy anything he can't afford outright or ever have to pay interest on anything. He could have great credit but he made the choice to never use credit a long time ago.

Where I live, if you have poor credit or no credit, you have to pay a pretty hefty deposit for things like new utilities. We're talking $500 that you won't get back for years until you move. Homeowners insurance and car insurance is typically higher for people with poor or no credit.

I wouldn't necessarily see it as a red flag but I would assume he doesn't know much about finances. Truly wealthy people don't necessarily pay for everything in cash; they leverage other people's money (aka, loans) to buy income-producing assets.

If he really has that much money, he could afford to build his credit.

[MonarchMom]

This guy I have been dating told me he doesn't have a credit score. He has never used credit. Part of me thinks it is a massive red flag but on the other hand the fact that he owns two homes, multiple cars, and other fun things all with no debt doesn't actually seem like a bad thing.

Opinions?

As it happens, I've never needed to buy things on credit - I inherited several properties.

You should be aware that, if the guy you're dating comes from old money, he is going to be in the habit of not revealing exactly how wealthy he is. Don't hold that against him. It isn't that he doesn't trust you. It's that he's been taught, from birth, to keep it confidential and share only as much information as a particular person 'needs to know'.

I'd suggest asking if his family has any traditions about having formal engagements.

He does not come from old money. He's just a hard working guy who doesn't like to buy things he can't afford outright.

That is true for a lot of folks, our family included. No mortgage, no car loans, no CC balances, no home equity loans. But I still have credit cards for convenience when traveling and shopping, and I still have a credit score. Having a good credit score and being debt free are not mutually exclusive.

[RIZZY]

That is so weird to me. I've never paid a deposit for utilities.

He is great with finances he just never wants to buy anything he can't afford outright or ever have to pay interest on anything. He could have great credit but he made the choice to never use credit a long time ago.

Where I live, if you have poor credit or no credit, you have to pay a pretty hefty deposit for things like new utilities. We're talking $500 that you won't get back for years until you move. Homeowners insurance and car insurance is typically higher for people with poor or no credit.

I wouldn't necessarily see it as a red flag but I would assume he doesn't know much about finances. Truly wealthy people don't necessarily pay for everything in cash; they leverage other people's money (aka, loans) to buy income-producing assets.

If he really has that much money, he could afford to build his credit.

Probably because they ran your credit instead.... Utility companies don't just give you a month of free services until your bill is due simply because you sign up. They either run your credit, or they ask for a deposit.

It's cool that he avoids debt but what people keep repeating in this thread is that credit scores are not just useful for borrowing money. Does he not have homeowner's insurance? Let me guess, he also doesn't own a car or have car insurance? Insurance companies check your credit and if you have poor or no credit, your rates are higher.

Credit scores can be used for a multitude of things. So, no, I wouldn't think of it as a red flag, but I also wouldn't think, "Wow, this person knows so much about money."

[Anonymous 7]

https://consumer.ftc.gov/articles/getti ... t%20harder.

https://www.allstate.com/resources/car- ... tory%20can.

https://www.transunion.com/article/why- ... our-credit

https://www.nerdwallet.com/article/fina ... r-checking

[WellPreserved]

He doesn't take out loans and would never want to so a credit score isn't something helpful for him.

Ok… but he pays a lot more for basic living than someone with a good credit score does.

If he’s that wealthy, having a good credit score can help him keep more of his wealth.


Even something as basic as internet…or cell phone service…on paper hes living like someone who is just making it paycheck to paycheck regardless of what his actual financial reality is… sad to say they have to pay more for just about everything than someone who has healthy credit.





Think of it this way… if he opens up a bank account with nothing in it, then both spends $200,000 a year and funds the account with $200,000 a year… if he uses a debit card only his account will have $0 in it at the end of the year.

If he uses a credit card with a 3% cash back rate that account would have $6000 in it by the end of the year. Keep that up for ten years and you have $60,000 in savings and you can fund your kid’s entire college education just from the amount of money you were given back…

I agree. Just to get utility services turned on, you have to either pay a huge deposit or have your credit checked. IDK about you but I'd rather not have to pay a deposit. That money would serve me better being invested. Investment portfolios run your credit.

The thing is...you can't work forever. You're going to want to retire at some point. And no one who is good with money keeps $200K lying around in a checking account.

I agree that having credit is helpful but as someone with probably no credit score, I have investment accounts, a 401K, and feel no need for credit cards. I've also never had to pay extra for utility hook ups. Many people who find themselves suddenly single as aged adults don't have a credit score.

[RIZZY]

Ok… but he pays a lot more for basic living than someone with a good credit score does.

If he’s that wealthy, having a good credit score can help him keep more of his wealth.


Even something as basic as internet…or cell phone service…on paper hes living like someone who is just making it paycheck to paycheck regardless of what his actual financial reality is… sad to say they have to pay more for just about everything than someone who has healthy credit.





Think of it this way… if he opens up a bank account with nothing in it, then both spends $200,000 a year and funds the account with $200,000 a year… if he uses a debit card only his account will have $0 in it at the end of the year.

If he uses a credit card with a 3% cash back rate that account would have $6000 in it by the end of the year. Keep that up for ten years and you have $60,000 in savings and you can fund your kid’s entire college education just from the amount of money you were given back…

I agree. Just to get utility services turned on, you have to either pay a huge deposit or have your credit checked. IDK about you but I'd rather not have to pay a deposit. That money would serve me better being invested. Investment portfolios run your credit.

The thing is...you can't work forever. You're going to want to retire at some point. And no one who is good with money keeps $200K lying around in a checking account.

I agree that having credit is helpful but as someone with probably no credit score, I have investment accounts, a 401K, and feel no need for credit cards. I've also never had to pay extra for utility hook ups. Many people who find themselves suddenly single as aged adults don't have a credit score.

They are allowed to charge you more on your per kilowatt rate in lieu of charging a deposit and you'd never likely know. They're not going to tell you unless you ask or read the fine print. Any company out there that runs credit has multiple options for people with no or low credit. I'm just giving examples. Is it possible to have all of these things and never have an issue, yes.

[WellPreserved]

I agree. Just to get utility services turned on, you have to either pay a huge deposit or have your credit checked. IDK about you but I'd rather not have to pay a deposit. That money would serve me better being invested. Investment portfolios run your credit.

The thing is...you can't work forever. You're going to want to retire at some point. And no one who is good with money keeps $200K lying around in a checking account.

I agree that having credit is helpful but as someone with probably no credit score, I have investment accounts, a 401K, and feel no need for credit cards. I've also never had to pay extra for utility hook ups. Many people who find themselves suddenly single as aged adults don't have a credit score.

They are allowed to charge you more on your per kilowatt rate in lieu of charging a deposit and you'd never likely know. They're not going to tell you unless you ask or read the fine print. Any company out there that runs credit has multiple options for people with no or low credit. I'm just giving examples. Is it possible to have all of these things and never have an issue, yes.

True. People who live in rural communities (I'm one of them) tend to have now credit scores and banks and utilities adjust rates for the communities that they serve. I admit that if I were to try to move to an urban area with no credit score, it would be much more challenging. Personally, I don't see myself moving or ever applying for a loan so don't see the need but have encouraged my daughter to work on her credit. She was able to take out a small business loan through a local grant with no credit score but it could be that now that she makes payments on that loan, she is establishing credit.

I realize that my whole thinking about credit cards and credit scores is a little skewed but I'm a bit of a conspiracy theorist regarding them, lol. Living in Europe where less than 40% of the population has credit cards and speaking with friends who were equally wigged out by them has definitely shaped my view.

[SisterSomeone]

The only people I've ever personally known who didn't have credit were drug dealers, so I can't say I'd have a good first impression.

[Traci_Momof2]

I don't think lack of credit would raise a red flag but it might raise an eyebrow. It's just highly unusual for anyone beyond the age of 30 to have no credit at all.

People can do what they want but I am already talking to my 18 year old about getting a credit card and only charging groceries every month and paying it off every month so he can start building credit. There are so many benefits, and so many things that are easier, if you have credit and at least one well managed credit card.

The key in life is managing credit well, not avoiding it completely.