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It is an efficient method for lenders but can be a drawback for individuals who have not had any or many loans and don’t have credit cards. Individuals planning to apply for their first loan and those without accounts in their own name. This can include recently separated individuals whose bills were in the other partner’s name, and younger people may find themselves with ‘no credit’. Individuals who have always paid cash for goods such as motor vehicles and never held a credit card can also find themselves without a credit history.