If i have no credit history what is my score

A credit Score is a number used by lenders as an indicator of how likely an individual is to repay his debts and the probability of going into default. It is an independent assessment of the individual's risk as a credit applicant.

CBS's Credit Score:

• A CBS Credit Score is a four-digit number based on your past payment history on your loan accounts.
• The score range from 1000 to 2000, where individuals scoring 1000 have the highest likelihood of defaulting on a payment, whereas those scoring 2000 have the lowest chance of reaching a delinquency status. Together with the score, the risk grade and risk grade description are provided.
• Your credit score is just one factor used in the application process. Other factors apart from your credit report, such as your annual salary, length of employment, bankruptcy/litigation information, number of credit facilities may also be taken into consideration by lenders during a loan application.
• CBS neither "blacklist" nor play a part in the lending approval decision which is fully undertaken by lenders and its lending policies. CBS instead, only provides specific factual credit-related information about consumers who have credit or loan facilities to the lenders.

Description of Credit Score

Factors that Affect Your Credit Score?

1. Utilization Pattern

• This refers to the amount of credit amount owed/used on accounts by individuals.

2. Recent Credit

• Lenders may perceive that you are over-extending yourself if you have newly booked credit facilities within a short period of time.
• Consumers are advised to apply for new credit in moderation.

3. Account Delinquency Data

• Presence of delinquency (late payment) on your loan accounts will reduce your credit score.

4. Credit Account History

• A consumer with long established credit history is deemed to be more favorable or a reliable borrower when compared to one who has limited or no credit history.
• Accounts with history of prompt payments will help to boost your credit rating.
• 12 months of account repayment conduct (closed and defaulted accounts are also included) as displayed under the Account Status History in your credit report is used for score calculation.

5. Available Credit

• This refers to the number of accounts available (open or active) for credit.

6. Enquiry Activity

• This refers to the number of new application enquiries found in your credit
• Each time a potential bank/financial institution pulls your credit report in response to a new loan application, an enquiry is placed on your file. Having too many enquiries in your credit report indicate to lenders that you are trying to take on more debt, therefore increasing your credit exposure.
• To keep your enquiries to a minimum, try to limit the number of loan facilities and credit cards which you apply for.
• Review enquiries on existing loan facilities do not affect your score.

The average credit score is 703 in the U.S., according to Experian. If you don’t know your credit score, you may not know how you compare to the average. You may also not know why it’s important to improve your score. In this article, we provide tips for how you can learn your score and what to do if you don’t have one yet. 

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How to check if you have a credit score

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One way to know if you have a score is to use one of the available credit score services, such as Credit Sesame, Credit Karma, or Mint, to see where you rank. If you’ve opened a loan account with a bank or credit card company more than six months ago, you should have a score. You can also check your free credit history each year at AnnualCreditReport.com to see what credit activity you’ve participated in that would also contribute to this score. 

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Why you don’t have a credit score

There’s no such thing as a zero score. Having “no score” simply means you don’t have any number tied to your credit profile. You can be absent from the scoring model if you’ve never had a credit card or loan, or if you haven’t used credit in a long time. It’s also possible that your new line of credit hasn’t been reported yet.

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What you need to know if you have no credit score

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So, you’ve checked your credit, only to learn that you don’t have a score. Now what? There are some essential facts to keep in mind as you work toward establishing credit.

You may still have credit reports

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A lack of a score doesn't always mean you have a complete lack of credit history. Equifax, Experian, and TransUnion each track things a bit differently, but one or all could have data on you. It's also possible that your credit report will show activity that's too old to be counted in a credit score or too recent to show up. Scores generally only count the past two years in their scoring model. 

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You may have no credit scores even if you have open accounts

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If your open accounts are old and you haven’t used them in the past two years, you could have no score. This is true for accounts that you have closed, or accounts that don’t report to the credit agencies. One way to make sure your data is contributing to a score is to reopen old accounts or only do business with lenders that report to the three major credit bureaus. 

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You have fewer options for credit

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While you can still access some forms of credit without a credit score, it’s very difficult to do so. Plus, it’s likely that you’ll be shut out of some of the better credit options. Yes, it’s true that you need credit to get credit. So, what should those without a credit score do? Consider some of the other credit-building activities listed later in this article. 

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Having no credit score doesn’t mean you have bad credit

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A lack of credit score doesn’t tell lenders that you can’t handle credit. It’s more an indication that you haven’t proven yourself yet. As soon as you start participating in credit-building activities, you can quickly see your score appear—and improve, if done responsibly. It's sometimes much easier to build a credit score from scratch than it is to fix a weaker one.

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It can take time to build a credit score

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Opening a new credit account may not show up on your credit score for six months, or even longer. You must be patient when expecting a score from nothing. This also proves why it’s important to stop delaying credit activities. The sooner you act, the sooner you’ll see a score.

Why do your credit history and score matter?

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Banks stay in business by issuing credit to people who are responsible enough to pay it back. Without an intimate knowledge of how you spend your money, a credit score and credit history are the next best thing. They give the lender an idea of the risk they are taking when they lend to you. Then, they can approve or deny your application based on that risk.

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Credit histories and scores are also important for other areas of your life, such as applying for car insurance or getting jobs in the financial sector. Landlords may also require you to have a suitable credit score before they rent to you.

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What should you do if you have no credit?

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The number one thing to do if you lack a credit score is to start building one. These steps are available for those who are just starting out. 

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1. Become an authorized user

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If a spouse or family member can add you as an authorized user on a card, you have an opportunity to start building credit. Keep in mind that as an authorized user you won’t be solely responsible for paying the bill, so make sure to coordinate accordingly.

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Also, others may be reluctant to add you if you have a history of questionable money mistakes. In that case, see if you can be added as an authorized user but not actually get the physical card to spend on. This move can also affect your score negatively if the person fails to pay a bill, so partner up with someone who is money smart. 

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2. Get a co-signer

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Another option for getting a loan is to use a co-signer. This individual will put their name on the loan as a guarantee that, if you fail to make payments, they would be held liable. This is another situation where it pays to have a trusting relationship with someone who has good credit and who trusts you to make payments on time each month.

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3. Apply for a secured credit card

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If you have cash available, you could be approved for a secured credit card. These cards can be used just like your typical credit card, but they only allow you to charge up to the credit line equal to a cash deposit put down in advance.

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If you put down $500 in cash deposits, for example, you’ll have $500 to spend with that card. Prompt repayment of the card bill will soon have you building that much-needed credit score. 

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4. Diversify your debt

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Your credit score is based on several factors, one of them being your credit mix. Credit mix is a term that describes the types of credit you use. Student loans, car loans, or mortgages are considered installment credit. Credit cards or bank lines of credit are considered revolving credit. Having a little of each is the best way to keep your score healthy.

What would my credit score be if I have no credit?

What do you do if you have no credit history?

Why do I have a credit score with no history?

What credit score do you start out with?