There are a number of reasons why you may not have a credit score. This might be because you’ve not had many dealings with credit. This scenario commonly plays out if you haven’t established credit histories (like young adults) or if you’ve had credit previously, but all your credit accounts remain dormant for several months, or they were closed.
Reasons Why You May Not Have A Credit Score
First, you have to understand how credit scores are calculated, to better understand why you don’t have one. A credit score is a numerical summary of information in your credit report. Your credit score is used to gauge your creditworthiness and determine whether or not you can pay debts on time. Higher credit scores mean that there’s a likelihood that you can repay credit obligations depending on how you’ve handled credit in the past.
Credit scores are fueled with information in your credit report, which is a compilation of your credit accounts, including credit cards, loans, as well as any negative records like debt collections or lawsuit judgments. If you’ve never had any of these types of accounts, it best explains why you are without a credit score.
If you’ve recently opened your first credit card, but you’ve only had it for a few months, you may be without a credit score as well. The FICO score requires you to have at least one account that’s been active within the past six months. Immediately your account has enough history, you’ll be able to retrieve a credit score.
Also, if you have several accounts that have been dormant for several months or even years, it may deprive you of a credit score, even when you have a credit history. This is because all your accounts have been inactive for a long time. To curb this, you should start using your accounts again as long as they are not closed to establish a credit score, and maintain a healthy one.
How To Check Your Credit History
Obtain a recent copy of your credit report to see your credit history.
There are credit scores based on each of your credit reports from the three major credit bureaus which are: Equifax, Experian, and TransUnion. Note, you can have a credit score with one bureau and not the others if the account(s) you have opened do not report your history to all three credit bureaus.
How To Establish Your Credit Score
- Apply for a retail store credit card
- You can apply at your local bank or credit union, mostly if you already have a checking or savings account there.
- Another option is applying for a student credit card if you’re an enrolled student.
- Become an authorized user on a friend or relative’s existing credit card.
Once you’ve opened a credit account which reports to at least one of the major credit bureaus and has used your account for up to six months, you should have a credit score.
- You can also apply for a secured credit card, which needs a deposit to secure your credit limit