What Do I Consider My Credit Score if I Have None?

Some people pride themselves on having no credit score -- proudly declaring a score of "zero." Not having a credit score could be beneficial because you have no loans growing. However, you may have accounts that should go toward building your credit but the major credit bureaus either don't know about them or are not picking them up.

Identification

The credit reporting agencies do not rate consumers who have an empty credit profile or a limited credit history. In this case they just report something in the vein of "insufficient credit history." To have a credit score you must hold a loan that is reported to the three major credit bureaus. This is usually a credit card or installment loan, such as a student loan or mortgage.

Check For Accounts That Should Be Reported

If you have open accounts, keep paying them on time and wait for the agencies to list them -- this typically takes six months. Review your report for unlisted accounts. Some of your lenders may forget to report your history to the credit bureaus. Try to verify the account with the credit bureaus by sending in your monthly statements or ask the lender to update your file with the bureaus. If the lender does not subscribe to the credit reporting services, however, the agencies won't report the account.

Importance

Having a zero credit score may not be all bad. Taking on debt just to pay it back and get a credit history is a poor move. You essentially pay money to get a score and if you miss payments, you could up with a low score, which is worse than a nil score. On the other hand, expect to pay more for most services, such as cell phone service, insurance and deposits on utilities, without a good credit profile.

Tip

The bureaus have different information on you, which means you usually have a different score at each of the major agencies. If you have no information with any bureau, consider self-reporting payments to an alternative credit agency. For a monthly fee, the alternative agency verifies and reports nontraditional accounts, such as cell phones, to lenders. If you want a FICO score, you will need a revolving account, such as a credit card, or an installment account, like a student loan, for the agencies to calculate a score.