Can You Buy a House With No Credit?

It's possible to get a mortgage if you don't have a credit score, but you'll probably have to look harder to find the right lender — and be prepared to provide extra documentation to show a record of paying bills on time.

Here's what to know.

What are credit history, credit report and credit score?

• A traditional credit history is a record of how someone has repaid debts such as car and student loans, mortgages and credit cards.

• Your history is contained in credit reports compiled by the three major credit-reporting companies — Equifax, Experian and TransUnion.

• A credit score is a three-digit number based on information in someone's credit reports. Two of the most important elements are whether a person has a history of making on-time payments and the amount of money they owe compared with their available credit. Lenders use credit scores to assess the likelihood that applicants will repay money they borrow.

If you've never taken out a loan, had a credit card or been an authorized user on someone's credit account, then you may not have a credit report or credit score.

The difference between bad credit and no credit

• Bad credit means you've had some missteps and your credit score is low. A score below 630 on a scale of 300-850 is typically considered a bad credit score. You may be able to qualify for a mortgage with a credit score in the 500s or low 600s, but you'll pay a higher interest rate than a borrower with good credit.

• No credit means you don't have a track record of handling credit accounts, so you don't have a credit score. With no credit score to go on, it's more challenging for lenders to gauge the risk of loaning you money.

» MORE: How to buy a home with bad credit