Often times no credit is better then a low credit score, programs through many bad credit lenders and even conforming lenders are available for a borrower with no credit scores. However to get a conforming loan with no credit scores there will have to be good compensating factors such as down payment, good financial reserves and good job history.

With a bad credit card you often can establish other forms of credit at many smaller stores. Although these forms of store credit are not the greatest type to have, it will put you on the way to establishing trade lines and timely payments.

Fha loans are a great alternative to bad credit loans for borrowers who may have bad credit but have gotten their finances back on track. The FHA underwriters will often ask for proof of timely account payments. Alternative trades such as cell phone, cable tv and rent can be used to prove timely payments.