Nothing prompted this question other than wandering curiosity.

We know that it is possible to suffer a poor credit score due to a thin credit history and lack of variety of credit.

Is it possible for a similar scenario to occur for people living at home or in a situation where they do not pay rent, have any contract for a lease and do not own any property on which it can be assumed they live.

There would still be sufficient proof of residence in the form of bills and identification, but is there any situation where it would come up?

  • is there any situation where it would come up? That's an incredibly broad question and it's hard to have any sort of all-inclusive answer. I know you basically said you're just curious, but can you provide any more context? What scenarios are you concerned about? What life changes are you planning for the future? – dwizum Feb 4 at 15:17
  • Probably the minimum context needed would be the country. What effect it might have in Germany might be quite different to the effect in Guyana. – TripeHound Feb 4 at 16:56
  • If you get detained internationally and they want proof of your residence then everything with your name+address will help. – MonkeyZeus Feb 4 at 20:45
  • The title says “no records” but you go on to say you have “bills and identification” (which cover a wide span of records). What kind of records are you thinking of not keeping? – Lawrence Feb 4 at 21:51

Lack of information should not hurt your credit score. Most property owners do not report rent paid to credit bureaus - only collectors if rent has been missed and reported to a collector. So not having to pay rent should not be a red flag.

Where it might hurt is when you apply for a mortgage or other personal loan and they look at your home ownership (to evaluate financial stability). On one hand, not paying rent increases your disposable income, but on the other, you're living off of someone else's good graces, which could be perceived as a risk (e.g. what if you get thrown out?).

Bottom line, don't worry about paying rent just to tweak your credit score. Pay your other bills on time and you'll be fine.

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  • OTOH, just about everyone who gets a mortgage gets one for the first time at some point in their lives, and it can't be all that unusual for someone to get that first mortgage while e.g. living with mom & dad, so it should be something lenders are reasonably familiar with. – jamesqf Feb 4 at 19:44
  • @jamesqf You're right - and I'm not saying it is definitely a red flag, but I could see a loan officer having reservations about initiating, say, a large car loan that's a large percentage of income even without a mortgage or rent payment. That's tangential, though - I was just speculating on how it might affect your ability to get a loan (certainly not your credit score) – D Stanley Feb 4 at 19:51
  • @D Stanley: True (I think). I was thinking of mortgages only, mostly because that's about the only thing I've taken out a loan for. (Other than long ago paid off student loans, which are a different ballgame.) – jamesqf Feb 5 at 4:04

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