It’s wise to check your credit to assess where you stand financially. However, you may be among the 45 million plus adults who don’t have FICO scores. If you don’t have extensive experience with credit, it’s unlikely that you have a substantive credit score. This is especially common among young people who haven’t had the chance to establish credit histories. Alternatively, if you did have a credit score before, but have had dormant credit accounts for several months, your credit score may not be visible anymore.
Understanding what credit scores are and how they’re calculated will help you understand your lack of a credit score.
Why You Don’t Have a Credit Score
A credit score is a numerical expression or summary based on a level analysis of an individual’s credit files. The score represents your creditworthiness and is a method whereby your ability to pay off debts is gauged. A higher score indicates a higher likelihood of repaying credit obligations based on your history of handling credit.
Considering the fact your credit report’s information is a numerical compilation of your credit accounts (loans, credit cards, lawsuit records and judgments, debt collections). You won’t have a credit score if you’ve never had these kinds of accounts. No credit history means no score.
On the other hand, you may have only recently opened your first ever credit card. To have a visible credit score, you need to have an account that’s been active for six months or more. You’ll receive a credit score when you have enough history.
No Credit Score Isn’t an Indicator of Bad Credit
It’s important to understand that not having a credit score isn’t necessarily a bad thing for the simple reason that it doesn’t mean you have poor credit. Once you do receive your score, it may actually be far better than you realize. Of course, your credit habits will then determine where your credit score stands, so it’s crucial that you handle it wisely. Make your credit card and loan payments on a timely basis.
If you’re looking to get your credit score in order, you’ve come to the right place.
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