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What Does It Mean When You Have No Credit Score?

According to a published FICO report, there are over 50 million FICO score qualified people without a credit score. It is therefore advisable to always check your score to know where you stand in terms of financial possibilities. That said, what does it mean when you have no credit score? We have expounded more on this below.

Why You Don’t Have a Credit Score

No Credit ScoreWhile there are several reasons why you don’t have a credit score, this doesn’t mean you have a bad credit score. Here is why you may not have a credit score:

  • You haven’t applied for a loan in the last 7 years.

Since your credit score is calculated from your credit, your credit report is therefore blank.

  • You are young or fresh from college

If you don’t have a credit card or haven’t taken a student loan at this stage, you have no credit history because you haven’t yet been listed on any credit account.

  • You have moved to a new country

If you relocate to a new country, credit bureaus may have no information that can be used to give you a score.

  • You have open inactive accounts for the past 2 years.

This also goes for any credit cards not used within the last 2 years or you have closed accounts appearing on your report.

  • Your lenders don’t report any information to any of the three credit bureaus

While they aren’t required by any law to report to any of them, if the creditors fail to report, your credit history will be very thin.

  • You haven’t applied for or used credit in the last 6 months.

This means your recent reports are very thin. Banks and other lenders can’t calculate a credit score from a thin file because the information isn’t enough

Why Your Business Doesn’t Have a Score

Upcoming businesses and startup scan also lack a credit score. Business accounts with no credit scores are assigned the code 9002. This means that there aren’t enough credit account records (trade lines) for calculating a typical credit score. The business profile report lacks sufficient trade lines to satisfy credit bureaus in the following ways

  • Lack of a Status date for last 6 months
  • No balance in the last 6 months

Unlike for individuals, Experian calculates your business score using an Intelliscore Plus algorithm which gives a range from 1-100. The closer the score is to 100, the better it is for any business.

For a business to have a proper credit score, they need to:

  • Have a trade lines which has been open for 6 months or longer
  • Have at least one undisputed account. It shouldn’t have been reported to Experian within the past 6 months.
  • There also shouldn’t be an “indication of deceased” on the business credit report.

What are your Credit Options If You Lack a Credit Score?

Here are your options:

  1. Credit Builder Loans

These are loans that you apply for but you have to pay up before receiving the funds. If you applied for a $10,000 loan, with an interest of $2000 and your monthly payment is 1,000, it should take you at least 1 year to repay.

During the 12 months of paying up, you will be building your credit score. Once you’ve finished paying, you will be given access to the $10000.

  1. Secured Credit Cards

Without a credit history, you can’t get a traditional credit card; you get a secured one. A secured card differs from the regular ones in that you are required to make a deposit against the credit limit of the card- if your deposit is $500; your credit limit becomes$500.

  1. Getting Store credit cards

These are cards offered by retail shops with which you can only buy things from those stores. They will help you build your score while getting access to items you need

  1. Finding a Cosigner

This can be a family member or a friend with a strong credit history that cosigns your loan to help you establish a credit history. They help you get better interest rates when building your score.

  1. Become a credit card authorized user

You can be added to a credit card account by a close person, giving you access to the credit. As an authorized user you can start building credit. For this to be effective, your creditors need to report your authorized user account to the credit bureaus

The Take-Away

While you may rejoice in having no debt and not taking loans, this may work against you when you need large sums of money that require taking credit. To be on the safer side, you should aim at building an impressive credit score, and a good one. This will go a long way in shielding you from limitations brought about by not having a score at all.

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Credit Absolute
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Ulysses Martinez
Ulysses Martinez
21:06 05 Jun 20
Credit Absolate is helping me get my credit score up. They have done by far a fantastic job. I couldn't be more happy with the experience and the customer experience is phenomenal as if your part of the family. They make sure you understand your credit usage and the educational videos are very clear. They are changing my life around. Just being with them for 2 months I got my score from poor to fair and dropped of some accounts from my cresit report. I cant thank them enough. Truly a success story
Angel  Maldonado
Angel Maldonado
14:27 30 May 20
They are amazing! Not just Derk but the whole team is great. The videos they provide are so helpful. They just don't help you improve your credit score, they also teach you how to manage your credit score. If you have bad credit contact them 1st before you even start trying to fix your credit on your own!!!
Keith Russell
Keith Russell
23:40 29 May 20
Easy to work with. Very fact based and focus on teaching me how the credit scoring system really works. My credit score increased by 100 points. Best investment in my credit worthiness. Great customer service, this is the real deal.
Fanisha Vela
Fanisha Vela
16:05 05 May 20
This is a wonderful team to work with. They have made the process so easy and efficient. Results seen within the first round of action!
Brandon Dickinson
Brandon Dickinson
01:04 26 Mar 20
What an awesome team. They work hard and get things done. My credit has jumped amazingly and the coaching videos are very informative to every detail. Would recommend this company to anyone looking to better their credit.
Bre Udave
Bre Udave
22:59 04 Mar 20
this has been one of the best experiences i've had working with a company! i am very happy with my success thus far and everyone (especially Leslie) has been so helpful with everything! If you're looking to fix your credit, stop searching and use this company!!
Steven Lasseson
Steven Lasseson
14:51 28 Feb 20
I've tried a few other credit repair companies and Credit Absolute has provided the best service I've come across. In just over a year, they were able to get numerous items removed from my credit report. The process is simple, the staff is easy to work with, and the results are everything you'd hope for. If you are looking for help in your journey to financial freedom, do yourself a favor and give Credit Absolute a call.
Kade Deeyor
Kade Deeyor
21:51 19 Feb 20
Credit Absolute has been a huge help for me. Since the beginning I’ve seen an enormous increase in my credit score. Felicia and Leslie are especially helpful, concise, and very informative. They both always get back to me within minutes if I have any questions or concerns. I would highly recommend Credit Absolute to anyone seeking a better understanding of how Credit Scores actually work or if you’re looking to increase your scores.
Phuong Mai Pham
Phuong Mai Pham
17:56 13 Feb 20
Credit absolute has helped me tremendously over the past few months. My scores for all 3 credit bureaus have increased by 50+ points. I appreciate the education on credit. I am now much more knowledgeable and strategic about when I should and should not use my credit cards. I look forward to my progress as my goal is to purchase a home by the end of the year!
Doug Donaldson
Doug Donaldson
06:13 21 Dec 19
I noticed a few changes on my credit report that had lowered my score which concerned me and after looking at reviews online I decided to set an appointment with Derek at Credit Absolute. I was fully expecting to spend hundreds of dollars for his advice on what I should do to get it back up to where I had it. After consulting with him and looking in depth at my report, he gave me some tips and helped me understand how the 3 bureaus work and what I could do to increase my score. Best of all..... he didn't charge me a penny. Derek is an honest guy, running an honest business, and if you are looking to build your credit score then he is the guy to turn to. It was about a year ago that I met with him and my score is up over 90 points. 10/10 would recommend Derek at Credit Absolute!
Ashley Krolak
Ashley Krolak
21:58 25 Nov 19
Thank you to entire team at Credit Absolute! We have accomplished so much in a short amount of time. They have helped my whole family increase our scores. They are organized, helpful and get the job done all while teaching you helpful hints along the way. I highly recommend this company for any credit needs.
dan uyematsud
dan uyematsud
21:29 13 Nov 19
Simply the BEST!!!!!!! Derick, Felicia and Becky are extremely good at their job. They work very hard to teach one how to improve their credit as they work very hard on their end to build your credit. I am very pleased as I see my credit score increasing in a short period of time. Thank you again, Dan U
nestor victore
nestor victore
22:14 04 Nov 19
You guys have done an amazing job, I'm very happy with my score has improved over 100 points. I'm happy with you guys services and help, thanks.
Tina Abbott
Tina Abbott
02:07 01 Nov 19
My experience with Credit Absolute has been nothing but wonderful! The entire staff are very knowledgeable and understanding. Felica is the one of the nicest people.
Christopher Moore
Christopher Moore
15:10 03 Oct 19
Communication with Derick and the team couldn't be better. I spoke directly to Derick and he was upfront, honest and didn't waste time. I would certainly recommend Credit Absolute to anyone who is looking into credit repair. They'll give you an honest overview of where you are and what they can do to help you reach your goals!
David Burgess
David Burgess
19:02 20 Aug 19
Derick and his team have been extremely helpful and informative throughout this entire process. I would recommend to anyone who wants/needs to repair credit quickly! Worth more than the money without question!
steve moore
steve moore
23:32 16 Aug 19
Derick and his team were awesome! I would highly recommend their services if you are looking to refurbish your credit score!!! +A all around for his team and the willingness to help me out !
Zacary Roberts
Zacary Roberts
03:00 26 Jul 19
Felicia helped me out so much, the company is professional l, but they treat you like your their only client. They are thorough and honest and my credit score has gone up remarkably ever since I started working with them. Thank you so much!
Chris Gunn
Chris Gunn
18:50 25 Jul 19
Good folks. Money well spent. Their service works! I finally got my credit straightened out to where I could buy a home because of them.
Christy Russell
Christy Russell
15:37 25 Jul 19
This company provides a great service! Friendly staff, plain-spoken, direct, no nonsense. They really make you feel like they care. Simple and straight-forward approach. They analyze your credit report and quickly make a plan to step-by-step repair any flags. I highly recommend their program.
Christian Wunder
Christian Wunder
19:35 18 Jul 19
They have been great to work with. Going on 3 months now and my score has taken a huge jump. I've had items removed from my credit and every month we go over our strategy to maximize the improvements. Highly recommend :)
Baron Adelmann
Baron Adelmann
21:59 26 Oct 17
Derick and his team have helped me tremendously! He explains the process of improving your credit and does all of the work for you! My credit score has improved drastically and I know that I couldn't have done it without the help of Credit Absolute. Because of them, my business has continued to thrive in a way I never thought possible. Thank you Derick and the Credit Absolute Team!
Gabriela Lovelace
Gabriela Lovelace
23:17 30 Jun 17
I want to thank the wonderful team of Credit Absolute for all the work they did in help me clean my credit! They have teach me how to keep my credit clean and how to make it grow! I will be their customer for life and I recommend to anyone who needs help with their credit! Credit Absolute you are awesome!!!!
Sho Sho Smith
Sho Sho Smith
22:31 16 Feb 17
Derek just made my day when I thought my credit was being compromised due to a balance on my late husband's credit card. He checked it out my credit health and assured me that I lost no points and the balance was forgiven. Great news! He gave me pointers on how to get my credit score even higher to put me into the premium level and coached me on getting back on my feet, credit-wise, after my husband's death. A great experience!
Vanity Hernandez
Vanity Hernandez
20:15 19 Jul 16
I was referred to Derick when my credit score dropped 3 points as I was in the process of trying to get a mortgage loan. Derick gave me GREAT advise and also helped confirm all the credit myths I have overheard on how to improve your credit score. Not only did he give me advise, he not once tried to have me hire him like others usually do. Derick was genuine and that's hard to come across with business. :)
Ian Farruggio
Ian Farruggio
19:29 05 Jul 16
Derek was completely professional and offered helpful suggestions to help me improve my credit. He was honest, in that his services were really not needed and helped to point me in the right direction free of charge. If you have any questions regarding your credit, this is the only place to go!!!
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