Building a credit history – score not building
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I’ve been renting a home for the last 3 years. The utility, internet & cable bill are under my name (aside from the rent contract which is under my name, naturally), and I’ve made all payments on time!
I’ve decided to move to a larger home, and applied for a new lease, but when they ran the credit check on me it said that I have no credit score.
How can this be? I really don’t understand this. Is there any chance they got it wrong? How can I fix it? Can I have absolutely no credit score at all? Do I have to open a credit card before my other bills start counting towards my credit?
Your help is appreciated.
These types of payments don’t build credit
It’s very logical. Unfortunately, you need to use credit in order to build a credit history. Stuff like rent utility bills, gym memberships, checking accounts, saving accounts, cell phones are not extensions of credit and do nothing to build credit score.
These types of payments do not go on your credit report. Since credit scores are based on the information that’s on your credit report, this explains why you don’t have a score.
You nee to use credit in order to build credit history and have a credit score. For this you need to use either Installment credit (Student loan, Car loan, Furniture loan or any other loan) or Revolving credit (Credit Cards) and use them for at least 6 months.
You need to start using credit. The best way to do this is by getting a small secured loan and a secured credit card.
You can read more about it here.
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