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When you have no credit history, you also have no credit score. This happens because there's simply no information available to create a credit report or calculate a score, either because you've never used credit before or haven't used it in a very long time.
Without a credit history, it can be tough to get approved for credit cards, personal loans, or our best debt consolidation loans. But don't worry—everyone starts somewhere, and there are practical ways to begin building credit from scratch.
Key Insights
- "Credit invisible" means having no credit history or score, not the same as having bad credit.
- Having no credit history limits access to loans, rental housing, and some employment opportunities.
- Check your credit status free via AnnualCreditReport.com to see if you have history with major bureaus.
- Build credit with secured cards, credit builder loans, or as an authorized user on someone's account.
What Does It Mean to Have No Credit Score or Credit History?
When you have no credit history, it simply means there is no information about you to create a credit report – a summary of your credit history that is used to generate your credit score. People with no credit history also have no credit score and are considered “credit invisible.”
This can happen for one of two reasons:
- You never established credit in the first place (by taking out a loan or opening a credit card).
- You haven’t actively used credit in such a long time that the old information has fallen off your credit report (closed accounts typically get removed after seven years).
“When lenders and service providers are considering whether or not to extend credit to you, they look at your credit history, which indicates how reliable you are in repaying debts or making regular payments.
When a person has no credit history, they’re generally considered ‘credit invisible,’ which means they don’t have a credit score at all. This doesn’t imply [they have] bad credit; it just means a clean slate,” says Dennis Shirshikov, educational leader at Fullmind and an adjunct professor of finance at the City University of New York.
How Having No Credit Score Creates Financial Challenges
- Difficult to get approved for credit: Lenders rely on credit history to assess risk, so without a credit score, you'll struggle to qualify for credit cards, personal loans, or mortgages. Banks and credit unions simply don't have enough information to evaluate you as a borrower.
- Renting challenges: Many landlords check credit reports before approving tenants. While you might not be automatically rejected, property owners often prefer applicants with established credit history, putting you at a disadvantage.
- Limited job opportunities: Some employers run credit checks during the hiring process, particularly for positions involving financial responsibilities. Candidates with solid credit history may have an edge over those with no credit background.
How to Check Your Credit History
Don’t know what’s in your credit history? The best way to find out is to check your credit reports with all three credit bureaus—Equifax, Experian, and TransUnion. Creditors and other third parties supply information to the credit bureaus to create your credit report.
You can check your credit reports for free once a week in the following ways:
Request your credit reports online at AnnualCreditReport.com.
Request your credit reports over the phone by calling 877-322-8228.
Request your credit reports by mail by completing and mailing in a Credit Report Request Form.
“You can get a look at your credit history for free by requesting a free credit report from each of the major credit bureaus (Experian, Equifax, and TransUnion) at AnnualCreditReport.com.
These reports won’t create or influence your credit, but they’ll make clear if any credit history exists with your name. If you find no record, you’re credit invisible,” says Shirshikov.
How to Start Building a Credit History
There are several ways to start building a credit history when you don’t have any. Some financial products were even created specifically to help people with limited or no credit history. Consider these options when you’re credit invisible:
Get A Secured Credit Card
One of the simplest ways to build credit is to open a credit card. To establish a positive credit history over time, keep your balances low and always make your payments by the due date.
If you can't qualify for a credit card because you have no credit score, you might qualify for a secured credit card—a card that you open with a security deposit, but otherwise functions like a traditional credit card and builds credit history.
Take Out A Credit Builder Loan
Making regular monthly payments on a loan is another reliable method for building credit history. Some banks and credit unions even offer credit builder loans to borrowers who would have trouble qualifying for a traditional loan.
With a credit builder loan, you borrow a small amount of money from the bank, and the funds are deposited in a CD or savings account. You make regular monthly payments until the loan is paid off, then you get access to the funds.
Become An Authorized User
If you have a trusted friend or family member who responsibly manages their credit card, you can piggyback off their credit activity by getting them to add you to the card as an authorized user.
You don't need to use the card yourself at all, but you can benefit from the card activity getting reported under your name. This only works if the primary cardholder uses their card wisely—if they max out their balance or stop making payments, your credit score could be damaged.
Frequently Asked Questions
What credit score does an 18-year-old have?
Most 18-year-olds don't have a credit score because they haven't had time to build a credit history yet. However, some may already have a score if they opened a credit card right at 18 or were added as an authorized user on their parents' credit card while still a teenager.
What is my credit score if I have never borrowed money?
You likely don't have a credit score at all. Credit scores require payment history data, which comes from borrowing money or using credit cards. The only exception is if you were added to someone else's credit card as an authorized user or if your rent or utility payments are reported to credit bureaus.
What happens if you have a 0 credit score?
You can't have a 0 credit score—the lowest credit score range on the FICO and VantageScore credit scoring models is 300. If you have no credit history, you simply don't have a score, rather than having a zero score. This is different from having bad credit, which would show up as a low score starting at 300.
Written byBrian Acton
Brian Acton is a seasoned personal finance journalist at BestMoney.com who specializes in loans and debt consolidation. His work has appeared in The Wall Street Journal, TIME, USA Today, MarketWatch, Inc. Magazine, HuffPost, and other notable outlets.