Forging Smart Futures | Real Money Advice for Real People

No Credit Is Not Good Credit: How I Learned the Hard Way (And What You Can Do Better)

About 20 years ago, I was ready to buy a new car—a Saturn Ion 3 with all the bells and whistles (which wasn’t much, but I was proud of it). At the time, I had no credit card debt, no car loan, and other than my mortgage—zero debt.

I figured I was in great shape.

Then the dealership ran my credit... and the loan officer gave me a look.

“Your score’s too low to qualify for a good interest rate.”

I was shocked.

I had no debt—how could I have bad credit?

Turns out, I didn’t have bad credit—I had no credit history at all.

And that, I learned the hard way, can be just as damaging.

Why No Credit Can Still Hurt You

Without a track record of borrowing and repaying money, lenders have no way to judge how “trustworthy” you are with credit. So they assume the worst.

I ended up getting an interest rate five times higher than what someone with “good credit” would’ve paid. It cost me thousands over the life of the loan—and it taught me a lesson I never forgot.

Start with This: Know Your Credit Score

Before you try to build or fix your credit, you need to know where you stand.

Check your score for free with:

• Credit Karma – Tracks your TransUnion and Equifax scores

• Experian – Often includes your FICO score

• You can also check your credit score with Credit Sesame, which offers free monitoring and personalized tips to help you improve over time.
  

These tools help you:

• See what’s on your report

• Identify missed payments or inactive accounts

• Spot errors that might be dragging you down

The 3 Credit-Building Tools I Wish I Knew About

If you’re starting from scratch—or starting over—here are the best first steps.

But here’s the thing:

Building credit is a marathon, not a sprint.

There’s no quick fix—but small, consistent actions over time add up to big changes.

🔒 1. Get a Secured Credit Card

A secured card works like a regular credit card, but you back it with a cash deposit—typically $200 to $1,000. That deposit becomes your credit limit.

You make purchases, pay off the balance, and the lender reports your activity to the credit bureaus.

My Story: Harley-Davidson® Secured Visa

When I finally understood how credit worked, I got the Harley-Davidson® Secured Visa.

I put down $1,000—my own money—and used the card responsibly for a full year. After 12 months, I was eligible to get that deposit back, and my credit had improved significantly.

How it works:

• You send a deposit (e.g., $1,000)

• That becomes your credit limit

• You use it like a normal card and pay on time

• After 12 months, it can graduate to an unsecured card
  

It’s backed by U.S. Bank, has no annual fee, and reports to all three bureaus.

→ [See full details in our Secured Cards Post](#)

💼 2. Try a CD-Backed Loan

Here’s how it works:

• You open a certificate of deposit (CD) at a credit union like [PenFed](https://www.penfed.org) or [Navy Federal](https://www.navyfederal.org)

• Then take out a small loan against that deposit

• Make regular payments, and they report that activity to the credit bureaus

• Choose a 12–24 month term for the best credit-building results.
  

→ [Learn how to build credit with a CD loan](#)

🧰 3. Use a Credit Builder Account

These are low-risk accounts designed for people starting out:

• You “borrow” a small amount held in a locked savings account

• You make monthly payments over 6 to 24 months

• Once paid off, the money is yours—and your credit is stronger

• They’re great if you don’t qualify for a traditional card or loan yet.
  

→ [Explore credit builder cards and apps](#)

You’ve Got This—One Step at a Time

Credit can feel like a gatekeeper—but it doesn’t have to be.

You don’t need perfect timing, or a massive income, or a clean history.

You need a plan.

And a willingness to take consistent steps, even small ones.

I’ve lived the frustration of getting it wrong.

Now, I’m here to help you get it right—**without shame, without scams, and without wasting another year.**

Start Now:

1. Check your score

2. Pick one tool above

3. Track your progress in [The Real Money Reset Kit](#)
   
   

Let’s forge a smarter future—together.