Question

All > Miscellaneous

cee11: 11 months ago | Last edited at 8:59PM on 6/22/2012

I have no credit score, but I pay my bills on time, so why do I have no credit?

I'm a student, i'll be 19 July, and I have 2 bills (cable/internet) in my name, which get paid on time every time. I've had internet almost a year, and cable for a couple of months. I have no credit AT ALL.

Answer This Question

Report as

Answer 1

DeanaWynn: 11 months ago

Hi cee11, "utility" companies such as cable and internet as well as electric/gas/landline phone do not report to the credit companies. To build credit you need a credit card, take out a loan or buy something with "local credit" like jewelry, a computer etc.

Helpful (2) Fun Thanks for voting Comments (4)

Report as

cee11: 11 months ago

What's local credit? I've applied for a credit card,mainly the ones that are supposed to build credit for people who don't have it, but all the companies say I can't because I have no credit, which confuses me because that's why I applied or a credit building credit card.

Report as

SummerSucks: 11 months ago

^ Those cards are for people who have really bad credit.

You should be able to just go to a bank and apply for the credit card. I'm surprised that you haven't been pressured into it because that's the only reason I opened the stupid account: every single time I went to the bank to make a transaction the tellers would do everything to convince me to open the account. I got sick of the pressure so I decided to just give in.

Report as

DeanaWynn: 11 months ago

sometimes you can get "in house" credit through local jewelry stores, furniture stores that sort of thing. You can also do it by purchasing electronics and using the company's house credit (I know toshiba does this for example if you order online) OR you can go through one of those companies that will sell you a computer for $20 week etc. Also getting a "secured" credit card works, you have to give them money in advance and that is all the credit you will have on it, but as long as you pay it every month (or better yet pay it off completely every month) it will add credit to your score :)

Report as

sillergoo: 11 months ago via iPhone

I think by local credit she is referring to local stores that offer credit. One of my first credit accounts was from a Heilig-Meyer furniture store. We bought a mattress I think. Rent-to-own places and places like Kay Jewelers also do this, though I'm not sure what their credit requirements are.

Report as

Add a comment...

Answer 2

sillergoo: 11 months ago via iPhone

Have you looked into secured credit cards? Basically, you give the company say $250. They then give you a credit card with a $250 limit. Use it to purchase stuff you would normally buy anyway, and then pay it off in full each month. They will give them to anyone, since they have your money in case you don't pay. Paying a credit card on time each month, and having a credit card that has a low balance on it will give you a good start.

Helpful Fun Thanks for voting Comments (2)

Report as

cee11: 11 months ago

Yes, and I was pretty much denied one for the same reason. I kinda don't want to take out a loan since I am a student, and feel a credit card would be better than a loan.

Report as

sillergoo: 11 months ago via iPhone

I'm really surprised they turned you down. What would they have to lose? The credit market is crazy these days. I definitely agree with you on the loan. At least with a credit card you can pay off purchases before they accrue interest charges. You're stuck paying the interest on a loan. I'm fairly certain you could get approved at a rent-to-own place, but I also wouldn't recommend buying something you don't need just to establish credit. Have you checked with your bank? They often have credit cards, and might be more willing to give you one if you've had an account there.

Report as

Add a comment...

Answer 3

joeknownans123: 11 months ago

Some companies never prepare credit scores for their customers. If you want credit score for your bills, I would suggest that you get a credit card. By using credit card to pay of your bills, you will have a credit score to show your credit report in case you need it.

Helpful Fun Thanks for voting Comments (0)

Report as

Add a comment...