Annual Credit Report With No Score? Learn How to Fix It!

I was stunned to learn that I had an annual credit report with no score? Here is how I fixed It.

What Causes An Annual Credit Report With No Score?

Everyone starts with a clean slate when it comes to credit. Unless someone used your social security number illegally, you should have no credit score when you turn 18 and start making adult decisions.

If you had credit once upon a time then went years without using it, you may find that all past accounts have fallen off your report, leaving you with an annual credit report with no score.

While many lenders will work with someone who has no credit history, some view it as worse than having bad credit. Your credit score tells lenders how much risk is associated with your financial history. If you have no accounts to report, your level of risk is a big question mark.

The good news is that some lenders will work with you despite your lack of a credit score. You can also do some things to start building your credit score, which we’ll discuss here.

Why You Must Open an Account or Two Early!

The first step to building credit is to secure credit. Before you go wild filling out credit card applications online.

Keep these 5 tips in mind:

Don’t apply for too many credit cards or loans at one time. Each application results in a hard inquiry on your credit report, which can temporarily lower your score. Spread your applications out to keep the damage minimal if you notice it at all.
Don’t go for cards aimed at consumers with good to excellent credit. You’ll take a hard inquiry and a likely decline. You need to prove your credit trustworthiness first.
A secured credit card may have better terms than an unsecured credit card intended for people with bad credit. Secure means you pay money onto the card to establish your maximum spending limit, providing security for the lender. It’s a starting point, not a final destination!
Don’t just consider credit cards. Maybe a credit card and a small loan is the best combination to get your credit score started.
Only apply to credit cards and loans that report monthly to all three credit bureaus. You can’t build credit when your accounts don’t get reported, and you will end up still having an annual credit report with no score.

Once you secure a line of credit, keep your balance as far below 20% of your maximum spending limit as possible. Try to pay your balance off ten days before the end of your billing cycle, and never miss a payment.

Also, don’t rush to pay off your first loan. The goal is to show that you’re responsible with credit, and closing the account even on favorable terms doesn’t offer much, long-term.

Secure a Credit-Builder Loan.

Some banks and credit unions will allow you to take out a loan without receiving and spending the money. It’s in an account, and you make monthly payments. The financial institution reports those payments to the credit bureaus to help you establish credit.

When the loan is complete, you receive your money back along with at least part of the interest you paid and the repayment to help remove that annual credit report with no score.

Make Your Utility Bills Work for You!

If you have a history of paying utility bills from your bank account on time, you can sign up for Experian Boost for free. It will comb through your bank account to identify on-time utility payments and then record those payments on your credit report.

Some services will report your on-time rent payments to the credit bureaus. They require a fee but are worth consideration if you pay rent responsibly. Some of the most popular services include RentTrack and Rent Kharma. You may need to get your landlord on board to sign up.

Become an Authorized User, Overnight!

Is there someone in your life who is financially responsible with a high credit score to prove it? If you feel comfortable asking them to add you as an authorized user on one or more of their credit cards, you can benefit from their on-time payments.

Payment activity will start showing up on your credit report as well as theirs. It is a quick way to fix an annual credit report with no score.

Keep in mind that the lender will issue a credit card in your name, but it will connect to the primary account holder’s line of credit.

The account holder can choose not to give you the card if they’re helping you build credit but don’t want you to use the credit. If you’re worried about charges on you, then keep the card yourself and never use it.

You should only take this approach with someone you know trusts and respects you. You should also trust them completely.

We have one more suggestion, and then you’re free to start building your credit. You can purchase an expensive item and finance it through the store. Many stores now offer this service online, or you can walk in to shop and buy. Ensure that the store reports to all three credit bureaus every month, or it won’t help you build credit.