If you've ever tried to get a loan or sign up for a credit card, you've probably encountered the term "credit score." Your credit score is a number that lenders use to determine how risky it would be to lend money to you. A high credit score means that you're a low-risk borrower, while a low credit score means that you may not be able to repay your debts. But what if you don't have a credit score? This can happen if you've never borrowed money before or if you've chosen not to use credit products. If this is your situation, don't worry - here's what it means and what you can do about it.
Why You Don’t Have a Credit Score
Millions of Americans don't have a credit score. You may be one of them. And you're probably wondering why. Here's the thing: Credit scores aren't just for people with loans. They're also used by employers, landlords, and insurance companies. So if you're not using credit, you're missing out on important opportunities. But don't worry!
There are plenty of ways to build your credit without taking on debt.
You haven’t applied for a loan in the last 7 years.
Did you know that having a credit score is important for so many reasons? A good credit score can help you get a lower interest rate on a loan, allows you to rent an apartment, and even determines your insurance rates. Unfortunately, if you haven't applied for a loan in the last 7 years, your credit score may be outdated. This means that it doesn't accurately reflect your current credit health, which could impact your ability to borrow money or get approved for a new credit card. Thankfully, there are ways to improve your credit score even if you haven't borrowed money in a while.
You are young or fresh from college
If you are young or fresh from college, you may not have had a chance to build up your credit score. This is understandable – after all, you're just starting out in life! But it's important to start building your credit as early as possible, so that when you need to borrow money for a major purchase, like a car or a home, you'll be able to get the best interest rates and terms.
You have moved to a new country
Are you one of the millions of people that have moved to a new country, only to find out that your credit score doesn’t transfer? You are not alone. Many people find themselves in this situation, and it can be quite frustrating. Luckily, there are ways to get around this issue.
You have open inactive accounts for the past 2 years.
If you have open inactive accounts, that account is considered active and will be factored into your credit score. In order to improve your credit score, it is important to close any inactive accounts. By closing these inactive accounts, you are demonstrating that you are taking measures to improve your credit history.
Your lenders don’t report any information to any of the three credit bureaus
They say that there are three credit bureaus in the United States - Equifax, Experian and TransUnion. However, your lenders don't report any information to any of them! This means that your credit score is based on a completely artificial construct. Your lenders only care about how likely you are to repay them, not whether you have a good or bad credit score. So don't worry if you've been struggling with your credit - it won't affect your ability to get a loan. Just make sure you can prove that you're able to repay the debt!
You haven’t applied for or used credit in the last 6 months.
You may not realize it, but there’s a good chance your credit score is dropping. Every month that goes by without using credit can lower your score. This is because creditors see you as a higher risk if you don’t have a recent history of borrowing money and repaying it on time. You don’t have to worry though – there are ways to rebuild your credit without taking out any loans.
- Why Your Business Doesn’t Have a Score
If you're like most small business owners, you may have never heard of the term "credit score" until a little while ago. And even now, you might only vaguely understand what it is and how it affects your business. But believe it or not, that simple three-digit number can have a big impact on your ability to get loans, secure credit cards and even lease space or equipment. So if you're feeling lost when it comes to your company's credit score, don't worry - you're not alone.
Call on (888) 804-0104 get help repair your credit now!