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In order to have a credit score, you must have a credit report. The reason is that score is calculated from the data on the credit report. The credit report information has to be current and include enough credit information in order to calculate a score. Point being, you’re not guaranteed to have a score just because you have a report.
A credit score is a complex and complicated mathematical formula that predicts future credit behavior, using both current and historical information. If you don’t have enough information and/or the information is not current, the credit report can’t be scored. Those most likely to be scoreless are those new to credit, who haven’t used credit for awhile, or who decided not to use credit and pay with cash only.
FICO 08 score
Each credit score requires a minimum of information in order to calculate the score. I will use the FICO score as an example, because it is the most widely used and the most information is provided about it. FICO 08, the latest version of the FICO score, requires the minimum information:
One account opened six months or longer.
One undisputed account updated on the credit report in the past six months. An account is disputed when there is an error, an account is listed that isn’t yours, or disputed. The dispute could be regarding merchandise or services received or not received. You have contacted the credit bureau regarding the dispute and who contacts the credit grantor. The account is considered in dispute until the credit grantor responds and gets back to the consumer. You should have also contacted the card issuer and merchant.
The account cannot belong or be shared with someone who is deceased. It will not be included in scoring.
The requirements can be fulfilled with one account. For example, an undisputed account that has been opened six months or longer and has been reported to the credit bureaus within the past six months can qualify.
Reasons for no score
To help to explain, I have listed some of the reason you might not have a score.
All accounts haven’t had any activity in the past six months.
All accounts are in dispute.
All accounts were recently opened less than six months ago.
Determining how to get your credit report score depends upon the reason you didn’t receive one. If you are new to credit, you will have to wait until your accounts are six months old. If you have not been credit active, you need to use one of your credit card accounts. That is, if your account is not considered inactive by the card issuer. If it is inactive, you may have to contact the card issuer to activate it.
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Credit Reporting Expert, John Ulzheimer, is the President of Consumer Education at SmartCredit.com, the credit blogger for Mint.com, and a Contributor for the National Foundation for Credit Counseling. He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry. Follow him on Twitter here.
