There are several reasons. This article will discuss some of the more common reasons a consumer has no credit score. Tips and techniques in getting one will also be discussed.
Credit Report Means Credit History
A person who has no credit history will not have a credit report. Credit history means the different types of credit transactions your name is associated with in the past and present. For example, credit card charge, a salary loan, a mortgage, auto loan, etc.
You Are A Minor With No Credit Related Accounts
Some minors already have credit history. This is because their parents have enrolled them on a savings account, a supplementary card, a debit card, etc. However some minors have always relied on their parents. In this case there will be no credit history to speak off.
You Have Always Paid Cash
Yes there are some consumers who prefer to pay in cash. They may have a bank account but the same is not active or not connected with credit cards. This is not really something to be ashamed about. And in fact, some of these consumers are a shining example of financial planning. However, they will have no credit history, so when it comes time to apply for a loan for a big ticket purchase like a house or automobile, they will have to pay cash as well, which some of them actually do.
You have always been unemployed
Some employers provide their employees with the facility of credit. They have payroll accounts, credit card accounts, checking accounts, etc. Those who have never been employed usually do not have a credit history, because no bank or lender will allow them to open a line of credit.
Your Accounts Have Been Inactive
It usually takes around 6 months to 1 year for an inactive account to show no credit reports and scores. There are several reasons for this, you might have been out of the country, you might be in the military service, or you just stopped minding your credit. This is the easiest to remedy, all you have to do is charge a few items, deposit some money to your accounts, withdraw some money, etc.
You Inputted the Wrong Information
And there are also cases wherein you applied for a credit report, but you inputted the wrong information i.e. full name, address, SSN. If you applied by registered mail on a handwritten letter, the same might have been with poor penmanship. You forgot to fill out necessary information. In order to avoid this, always double check your application information. If possible retain a photocopy for your reference.
Your Credit Facility May Be a Ninja
There are some credit facilities, banks, lenders, etc. that do not report information to the credit bureau. If this is the case, then your credit history exists but it is not on the radar. Talk to your credit facility and ask that your information be reported. You can even do it yourself, but with a written certification from your credit facility.
What Should You Do?
You should build credit history. If you have a dormant account start using it. If you have no account, open some up. If you have a hard time opening accounts with the facility of credit i.e. credit cards, then ask for a supplementary card from a relative or friend.