How can I build my credit score with no credit history?

Everyone's credit score starts off differently, though the lowest credit score you can have is 300. Some of the best ways to improve your credit score quickly when you have no credit history include becoming an authorized user, opening secured credit cards, or getting a small loan in your name .

Why does Experian say I have no credit history?

It's possible to not have an Experian credit report if you have not opened a credit account or if none of your accounts are reported to Experian . Because credit reports record your history managing credit, you won't have one if you've never had a credit account.

How to get a credit card if you don't have a credit history?

Student credit cards One option for an unsecured credit card for an applicant with no credit history is a student credit card. Student credit cards don't require a deposit like secured cards do, and usually function more like a regular credit card.

What if I don't have credit history?

If you have no credit history, consider the following approaches to building credit: Apply for a secured credit card , typically the easiest type of credit card to qualify for. Become an authorized user on a family member's or friend's card.

How fast can you build credit with no credit history?

The Takeaway. It usually takes a minimum of six months to generate your first credit score. Establishing good or excellent credit takes longer. If you follow the tips above for building good credit and avoid the potential pitfalls, your score should continue to improve.

Is no credit history good credit history?

Having no credit is better than having bad credit , though both can hold you back. Bad credit shows potential lenders a negative track record of managing credit. Meanwhile, no credit means lenders can't tell how you'll handle repaying debts because you don't have much experience.

Is a 350 credit score bad?

As mentioned, an 350 credit score is generally considered to be a poor credit rating . Depending on your other qualifications, such as income and employment, you may be able to qualify for certain types of loans (more on that in a bit).

How do you build credit when you are broke?

It's possible to rebuild credit with responsible use, like paying bills on time, managing your credit utilization and only applying for credit you need . Becoming an authorized user or getting a secured card could help show your ability to repay debt.

How to get approved for credit card with no history?

Credit Cards for People With No Credit History You may qualify for a secured credit card, store card or student credit card —even if your credit file is thin. These can help strengthen your credit history and make it easier to get approved for a traditional credit card.

What credit card has a $2000 limit for bad credit?

First Latitude Select Mastercard® Secured Credit Card Choose your own fully-refundable credit line – $200 to $2000 – based on your security deposit. No minimum credit score required for approval!

What is my credit score if I have no history?

Instead, if you don't have any credit history, you likely don't have a score at all . Credit scores are calculated by taking into account a few factors like payment history, current debt, credit utilization, credit mix, credit age and new credit applications.

Will I pass a credit check with no credit history?

Lenders will look at more than just your credit report. Their decision is also based on your affordability – all the information they collect from your application and three months of bank statements will be deciding factors for this. So yes, it's possible to get credit with no credit history .

7 Ways to Build Credit if You Have No Credit History

To view important disclosures about the Experian Smart Money™ Digital Checking Account & Debit Card, visit experian.com/legal.

Finding a lender to approve you for a loan can be an uphill battle if you're new to credit, or "credit invisible." Credit invisible consumers don't have enough payment history reported to the credit bureaus to produce a credit score.

It's no secret that credit is key when it comes time to finance big purchases, such as a car or a home. But even if you don't see yourself borrowing in the immediate future, having no credit history can be a barrier to accomplishing everyday tasks. Credit can come into play when you're renting an apartment, opening utility accounts, buying insurance and even looking for a job.

1. Become an Authorized User

If you don't have a history of managing credit accounts, it can be difficult to get approved for loans or credit cards. Becoming an authorized user on a family member's or friend's credit card is one way to build credit that doesn't involve applying for your own credit card. As an authorized user, you'll be added to the primary cardholder's account and get your own card you can use to make purchases. The credit card account, and its payment history, will appear on your credit report, helping you establish a credit history and score.

Before asking a family member or friend to add you as an authorized user, it's important to make sure that the lender reports authorized user accounts to the credit bureaus. If payments aren't reported, this strategy may not do you much good.

2. Try a Credit-Building Debit Card

If you're thinking about opening a new checking account, the can help you build credit without debt by automatically linking to Experian Boost^®^ø, which gives you credit for eligible bill payments after three months of payments. Payment history is the most important factor in calculating your FICO^® Score^☉ , so Experian Boost could help you make strides in your credit.

Beyond connecting you with credit-building features, the Experian Smart Money Digital Checking Account has other benefits. You'll also pay no monthly fees^¶ for Experian Smart Money, have access to more than 55,000 fee-free ATMs worldwide^** and could receive your paychecks up to two days early when you enroll in direct deposit^†.

You can get an Experian Smart Money Account through a free or paid Experian membership, which also gives you access to your FICO^® Score, Experian credit report and more. See terms at experian.com/legal.

3. Apply for a Secured Credit Card

Applying for your own secured credit card can be an excellent way to build credit. A secured card is typically easier to qualify for than a traditional unsecured card because it requires a deposit upfront that "secures" your credit line.

The deposit you'll need to provide varies depending on the credit card. Credit limits can also differ, but they are often equal to the amount of your security deposit. Some secured cards may charge an annual fee and other additional fees. If you're considering a secured card, shop around to see which credit card best fits your needs. Experian can help you find secured cards that may be right for you.

Once you establish a positive payment history on the secured card, you may get your deposit back and the opportunity to upgrade to an unsecured card.

4. Apply for a Credit-Builder Loan

A credit-builder loan is a type of installment loan designed to help borrowers build up a positive payment history. Unlike a personal loan, where borrowers receive a lump sum of money and pay it back over time, a credit-builder loan deposits monthly payments into an account each month.

Beyond helping you build up a positive payment history, credit-builder loans have the added benefit of leaving with a chunk of savings. At the end of the loan term, the borrower gets their money back—minus any interest or fees the lender charges.

Rather than reviewing your credit history, some lenders may look at your banking history or income to determine whether to grant you approval. That could make these types of loans a good option for borrowers with no credit. Missing a payment damages your score, so you should only pursue this option if you're confident you'll be able to afford to make on-time monthly payments.

5. Apply for a Store Card

Credit cards offered by stores are generally easier to qualify for than other traditional unsecured credit cards. If you frequent a certain store often, signing up for the associated store card could help you build credit while you do shopping you planned to do anyway.

One thing to be aware of, however: Store cards tend to charge higher interest rates than other cards. If you decide to open a store card to build credit, the best strategy is to pay off the entire balance each month. This way, you can avoid high finance charges.

6. Have Rental Payments Reported

If you pay rent on time each month, those payments could also potentially help you build credit. Like utility payments, rental payments are typically not included in your credit report. But you can ask your landlord or property management company to report your on-time payments. You could also get credit for rental payments using Experian Boost.

7. Establish Credit With Experian Go™

Experian Go is a free program offered to consumers with no credit report. It allows you to sign up for a membership account and create an Experian credit report so you can begin your journey to credit visibility.

Building Credit Takes Time

Building credit from scratch usually doesn't happen overnight. After opening your first credit account, it could take several months before enough payment history is reported to generate a credit score. That's why it's a good idea to start working on your credit before you actually need it.

While working on your credit, remember that slow and steady wins the race. If you keep account balances low and pay on time consistently every month, you'll be on your way to attaining the credit you need to achieve your financial goals.

7 Ways to Build Credit if You Have No Credit History - Experian (2024)