Question

Leon is 28 years old and pays cash for everything he buys. He has never had credit in his name and never missed or been late on any bills he has ever had. He recently went online to check what his credit score was. Where do you think his credit score would be?

Answer 1

Answer:

Nothing.

Explanation:

It is known that a good credit score generally comes from a history of managing money responsibly. This doesn’t mean you shouldn’t borrow money though; in fact, companies often like to see a track record of timely payments and sensible borrowing. In Leon's case, he has no dealings with credit cards as he makes all his transaction with physical cash; therefore he has no credit score in any way.

Leon has to work towards improving his poor credit score or need to build up credit history from nothing.