Trying to build good credit but my score is 0

[Lisa]

I have decided to start build good credit, so I requested a copy of my credit reports and also paid for a credit score. it turns out that I have a credit file, but it says that my score is 0?

What does a FICO score of 0 means? And what is the problem with my credit?

[Stuart]

You simply don’t have a score yet

A FICO score of 0 simply means that you don’t have a score yet.

You have no reason to worry. It’s common for people to have a credit report, but not to have enough information on it to actually generate a FICO score.

For a FICO score to be calculated, your credit report must contain these minimum requirements:

• At least one account that has been open for six months or longer
• At least one undisputed account that has been reported/updated to the credit bureau within the past six months
• No indication of deceased on the credit report (In case that your reported account is joint)

Understand that there is a lag time from when you have used your credit card, paid your statement or paid a loan until it gets on your credit report. So, If your credit card is new – you need at least 8 month from the time you applied until you can have a score.

If you whish to build GOOD credit, as opposed to just build A credit – you need more than one account. If you want a good credit score you need at least one or two credit cards, some type of a loan (secured loan is a good choice) and a car loan (installment). Credit diversity accounts for 10% of your total Fico score, and can make the difference between fair to a good credit score.

[Author]

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