What’s My Credit Score if I Don’t Have Credit?

When it comes to managing your financial future, your credit score plays a significant role. It’s the number that lenders, landlords, and even employers often use to gauge your financial responsibility. But what happens if you don’t have any credit history at all? Will you still have a credit score?

The short answer is: No, you don’t have a credit score if you don’t have credit. Let’s break this down so you understand why—and what you can do to build your credit if you’re starting from scratch.

Understanding Credit Scores

Credit scores are calculated based on the information in your credit report, which includes factors like payment history, amounts owed, the length of your credit history, types of credit accounts, and new credit inquiries. Without any credit activity, there’s no data for the credit bureaus to generate a score, so you essentially have no score.

What Happens When You Have No Credit?

If you’ve never used credit—such as a credit card, loan, or even a car payment—you may be considered a “credit invisible” person. This means that the credit bureaus don’t have enough information to create a score for you.

For most people, it’s hard to imagine not having any credit at all, but for others, it’s the reality of their financial situation. It could be that they’ve avoided credit altogether, are new to the country, or are younger and haven't built up any credit history yet.

How Does It Affect You?

Not having a credit score can put you at a disadvantage when you need to apply for things like:

• Credit cards or loans: Lenders often require a credit score to assess the risk of lending to you. Without a score, they might deny you or require you to offer a higher deposit or higher interest rate to offset the risk.

• Renting an apartment: Landlords frequently run credit checks to evaluate whether you’ll be a reliable tenant. Without a credit score, they might ask for a larger security deposit or seek other assurances that you’ll pay your rent on time.

• Utilities: Some utility companies (like electric or cable) might ask for a deposit if you don’t have a credit score because they can’t gauge your payment history.

How to Build a Credit Score from Scratch

If you find yourself in the situation of having no credit history, don’t worry—there are ways to build your credit score and establish a positive financial reputation. Here’s how:

1. Start with a Secured Credit Card

A secured credit card is one of the easiest ways to start building credit. With this type of card, you deposit money into a savings account that acts as your credit limit. You can then use the card just like a regular credit card, and after a few months of making on-time payments, your credit will start to build.

2. Become an Authorized User

If you have a family member or friend with a good credit history, ask them if they would add you as an authorized user on their credit card. This can help you build credit because the account's positive history will show up on your credit report, even if you’re not the one making the payments.

3. Apply for a Credit-Builder Loan

Some banks and credit unions offer credit-builder loans specifically designed for people without credit. The loan is typically for a small amount, and the bank holds the money in an account while you make monthly payments. Once you've paid off the loan, the money is released to you, and your payments are reported to the credit bureaus, helping to establish your credit.

4. Pay Bills on Time

Even though your rent or utility payments don’t automatically show up on your credit report, you can sometimes get them included through services like Experian Boost. This service helps you build credit by factoring in payments for things like utilities and phone bills, which can be a great way to start showing responsible payment behavior.

5. Use a Co-Signer

If you have someone with an established credit history, you can ask them to co-sign a loan or credit card for you. A co-signer will be responsible for paying the debt if you can’t, but the credit activity will help you build a score. However, this requires a great deal of responsibility and trust, so be sure you're committed to making your payments on time.

While not having a credit score can feel like a major setback, it’s not the end of the world. There are plenty of options to start building your credit and prove your financial reliability. Whether you’re starting from scratch or trying to recover from a poor credit history, taking the time to establish credit responsibly can set you on the path to greater financial freedom.