Help! I have no Credit Score. What do I do?
This is a very common issue. If you have no credit score it is because you don't have any "open and active" accounts.
According to Fair Isaac Corporation (aka FICO, aka the people who make the credit scores that the banks use) the minimum requirements for having a credit score are as follows:
1. You must have at least one account that has been open for 6 months or more
2. You must have at least one account that has been reported within the last 6 months.
3. If your credit report indicates that you are deceased, you will not be scored.
So you basically start out with a zero. In order to have a credit score, you must have an account that has been open for at least 6 months and active within the last 6 months.
What do I do?
1. Open a credit card
2. Get an auto loan or other installment loan
3. Piggyback on someone else's established credit as an authorized user on one of thier credit cards.
Remember, if you decide to open a new account, whether an auto loan, mortgage or credit card, it will takes 6 months of reported history to give you a credit score.
If you get added to someone credit card as an authorized user, there is a chance that it might not even show up on your credit report. It is recommended that you get added onto as many as possible without going overboard (over 10 would be great but edging towards overboard). This is the strongest strategy for increasing your credit scores quickly because it will add instant history, depth and seasoning to your credit report which will reflect well on your credit scores. Also, the balance and payment history on the account will affect your scores, so please take that into consideration as well.
If you have no credit score, getting approved for a new credit card or auto loan will be very difficult. There are specific lenders who might cater to a person with no credit score. Your best option is probably going to be a secured credit card.
Here is a link to a secured credit card. They will approve you without a credit score.
VISA Secured Credit Card - Reports to All 3 Major Bureaus
If you would like to consult with a credit expert, feel free to call us at (866) 692-1981 or (click here
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I have no credit score.