Did you graduate from school and are you on your own for the first time?
Are you in the military and did you just return from overseas deployment?
Are you a recent immigrant to the United States?
Did you and your spouse get divorced?
If so, then like millions of Americans, you are probably classified as either credit invisible or credit unscorable. Either way, the end result is the same – you can’t get access to credit. So, right now, you’re probably asking yourself, what’s the difference and does it matter?
If you want to start building your credit score, first, you need to know which category you fall into. Only then can you make a plan to get the credit score you deserve.
If you’re credit invisible, you do not have a credit score and/or credit report from one of the three the nationwide credit reporting agencies. Why? Because the payments you are making are not being included in your credit files. That means you need to get on the radar of the NCRAs. For example, if you’re paying your rent on time each month, start building your credit score by having your rent payments reported to the NCRAs.
If you are credit unscorable, you have a limited – or “thin” credit file. Why? Because you are new to using credit or you have not used credit recently, so you need to either build or revive your credit score. You can start by getting a secured credit card or becoming an authorized user on someone else’s credit card. You can also have your rent payments reported to the NCRAs.
Whether you’re credit invisible or credit unscorable, with a plan, you can start building your credit score. Services like RentReporters can help you get there by reporting your monthly rent payments to TransUnion, one of the nationwide credit reporting agencies.