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what is a "Zero" credit score? and how do I get a number score? I can't seem to qualify for a credit

  • March 24 2009 - US
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Answers (2)

A zero credit score is due to not using tradtional credit - car loans, personal loans, credit cards, etc. - that would be reported to the 3 credit bureaus.  You could still qualify for a FHA loan if you have 4 alternative credit lines with a 12 month history on each with no late payments. One of them MUST be rental history.  Others may be car insurance, utility bills, cell phone bills, cable bills.  However, I have seen many zero score credit reports that do have collections such as medical, paycheck loans, etc.  If that were to be your case, you must pay them off and establish tradtional credit as suggested by the previous answer. Good luck!
  • March 28 2009
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A "zero" credit score means that you have not established any lines of credit.  How you can establish a score is by obtaining a loan, credit card, or any revolving lines of credit. Creditors report to the credit agency the amount of your credit limit, your balance, and payment history.  They then "calulate" these variables and in return produces a score based on "risk".

A simple suggestion to building a good solid credit score is to either get a small balance credit card or a small personal loan at your local bank.  With a credit card, use this very carefully.  I would use it for only small items like groceries or gas and pay the balance off each month.  This will show activity, but you won't be paying interest.  On the small loan, take a loan for like $1,000, put it in a savings account, and make the payments on that loan from that account.  Over time you will develop a score.  This are just some simple ways of establshing credit without putting yourself in a financial bind.  There are many ways to do it, but this is what I have suggested to customers that are not reporting a credit score.

Good luck.
  • March 24 2009
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