topic Re: Zero Credit, No FICO in Rebuilding Your Credit

Zero Credit, No FICO

Anonymous — Mon, 06 Apr 2009 20:19:28 GMT

Hi All,

First time poster here and have been lurking for about 2 weeks or so now. I just recently checked my credit score and found out I have nothing...nada...ziltch on all three reporting agencies. I don't even have a FICO score.

I am 37 and have been living under the radar since around 97' due to bad luck (i.e., medical bills, student loans, repoed car) no CC bills though...I have never had one. The last time I checked my credit scores was back in 2003 and I owed around 40g total. I just checked it again last week 2009 and everything is gone. I have a clean slate, I think. Now what?

I so need a CC now. I will be traveling pretty soon and it's almost mandatory. I applied for a secured card through Applied and am waiting for it. My limit will be $500. Any suggestions on how I can raise my score to a nice respectable level? My income is pretty good, 6 figures a year so financially I am good to go.

Re: Zero Credit, No FICO

llecs — Mon, 06 Apr 2009 20:39:52 GMT

Welcome to the forums!

FICO has some minimum score requirements before issuing a score. One of those is that you have to have an account reporting as "open" for an age of 6 months or greater before receiving a score. There's a couple others too, but this is the biggie. If you have no open accounts, then that is the reason.

After 6 months of Applied reporting, you should have a score.

Let that CC report, but fix your baddies, if you have any as mentioned. I'd recommend pulling your CRs directly from the CRAs to get some detailed info. You can do so for free via annualcreditreport.com once a year. Look it over for any lates, bad references, etc. and post back. Someone will help you.

If nothing is reporting, then the only thing that can help is time.

Re: Zero Credit, No FICO

moondog7324 — Mon, 06 Apr 2009 22:30:38 GMT

Please read this and adjust according to your needs:

http://ficoforums.myfico.com/fico/board/message?board.id=creditcard&message.id=144356#M144356

Re: Zero Credit, No FICO

Anonymous — Tue, 07 Apr 2009 03:23:48 GMT

Hi llecs,

I got my report directly from Equifax...cost me $30. Everything is ZERO. Yeah I know I prob could have gotten a free one from annualcredit but I thought directly from Equifax would be more official. I requested all three credit reports and all are ZERO. All th "baddies" are gone away.

Thanks for the replies...I'll look into that link the other member posted

Re: Zero Credit, No FICO

Anonymous — Tue, 07 Apr 2009 03:24:57 GMT

PharmaDude wrote:
Hi llecs,

I got my report directly from Equifax...cost me $30. Everything is ZERO. Yeah I know I prob could have gotten a free one from annualcredit but I thought directly from Equifax would be more official. I requested all three credit reports and all are ZERO. All th "baddies" are gone away.

Thanks for the replies...I'll look into that link the other member posted

The reports from annualcreditreport.com come directly from EQ, TU, and EX.

Re: Zero Credit, No FICO

llecs — Tue, 07 Apr 2009 04:18:02 GMT

PharmaDude wrote:
Hi llecs,

I got my report directly from Equifax...cost me $30. Everything is ZERO. Yeah I know I prob could have gotten a free one from annualcredit but I thought directly from Equifax would be more official. I requested all three credit reports and all are ZERO. All th "baddies" are gone away.

Thanks for the replies...I'll look into that link the other member posted

Actually the reports are exactly the same, whether you pulled from annualcreditreport or directly from each CRA. The TU and EX scores you paid for are not FICO scores. Lenders do not use these scores and they don't matter. However, the score from EQ is an actual, real FICO score. EQ and FICO partnered up together.

The only way to get a score from this point forward is to wait 6 months and let the Applied count age.

Message Edited by llecs on 04-07-2009 12:18 AM

Re: Zero Credit, No FICO

RobertEG — Tue, 07 Apr 2009 07:40:25 GMT

If prior debt that you may have owed was on an account with a DOFD of more than 7 -71/2 years ago, it cannot show in your credit report. So I am not surprised that it no longer shows.

Your problem in establishing new credit is that you now have a very "thin" credit file. No accounts upon which to rate your credit risk over the last two years. No showing of payment history. No established revolving or installment accounts. So, in the credit scoring mentality, you are only 18 years old, and starting out.

You might have to start with a secured CC to build new credit history.

Your income means absolutely nothing to FICO scoring.

Raising your FICO score is time intensive. In fact, when you ffirst app for the secured card, you will take a FICO hit of around 10 points just for the new inquiry.

Just keep the balance on your new CC well below 50%, and pay timely.

Message Edited by RobertEG on 04-07-2009 12:40 AM

Re: Zero Credit, No FICO

Anonymous — Tue, 07 Apr 2009 13:16:30 GMT

Thanks for the responses...I thought the balance of the CC had to be 10% utility. or do I even need to worry about those types of specifics right now? 50% balance is much more plausible since my credit limit will be so low.

Should I get more than 1 secured card?

If I had no FICO score to begin with, then I couldn't have taken a hit...right?

Re: Zero Credit, No FICO

llecs — Tue, 07 Apr 2009 13:39:08 GMT

PharmaDude wrote:
Thanks for the responses...I thought the balance of the CC had to be 10% utility. or do I even need to worry about those types of specifics right now? 50% balance is much more plausible since my credit limit will be so low.
Should I get more than 1 secured card?

If I had no FICO score to begin with, then I couldn't have taken a hit...right?

Your goal with your CCs should be to let all but one carry a balance; the one with a balance could be tweaked later but get it to report below 10%.

Eventually you'd want one more revolving and one charge card to round out your mix of credit, but I would wait until you have a score, otherwise you risk getting several inquiries and nothing to show. Once your new score reports, then go for another.

Re: Zero Credit, No FICO

Anonymous — Wed, 08 Apr 2009 20:11:46 GMT

Thanks for the info llecs...for now I will await my extremely slow Applied Bank secured card to get here and establish a 50% balance ($250 max) and make timely payments. When the balance gets to zero I will charge another $250 and make payments on that. As soon as I get another different type of card I will try and go to 10% on the secured card and maintain a zero balance on the new card. (i.e., charge something and pay it off immediately). That is if I am understanding your advice correctly.

Maybe by that time, I will be offered a standard CC with a higher limit. Then I'll be living the high life!

Message Edited by PharmaDude on 04-08-2009 01:11 PM

Re: Zero Credit, No FICO

llecs — Wed, 08 Apr 2009 21:01:13 GMT

PharmaDude wrote:
Thanks for the info llecs...for now I will await my extremely slow Applied Bank secured card to get here and establish a 50% balance ($250 max) and make timely payments. When the balance gets to zero I will charge another $250 and make payments on that. As soon as I get another different type of card I will try and go to 10% on the secured card and maintain a zero balance on the new card. (i.e., charge something and pay it off immediately). That is if I am understanding your advice correctly.

Maybe by that time, I will be offered a standard CC with a higher limit. Then I'll be living the high life!
Message Edited by PharmaDude on 04-08-2009 01:11 PM

I hope I didn't say that.

Charge whatever you want on the card and PIF or pay down below 9% before the next statement cuts. If you time it right, that new low balance ($0 to 9%) would be reporting. Next month do the same and again thereafter. You don't have to use it every month, but you should use it every 3-4 months to keep it active.

When you get that second card, do the same, but let one of the two report $0 monthly. Your ultimate goal is to get either 1/2 of your CCs reporting $0 with the other half reporting $1 to 9% OR get all but one to report $0 with one of the cards reporting $1 to 9%. YMMV. You'd have to tweak it and try it out over several months to find the optimum scoring on that.

Re: Zero Credit, No FICO

Anonymous — Mon, 20 Apr 2009 17:46:54 GMT

I gotcha now...thank you. I still am waiting for my secured card so no mistakes made as of yet. I should have it within the next 10 days.

Re: Zero Credit, No FICO

Anonymous — Mon, 28 Dec 2009 19:27:20 GMT

What is the minimum age requirement to establish a FICO score?

Re: Zero Credit, No FICO

llecs — Mon, 28 Dec 2009 19:58:46 GMT

Hardtaco2000 wrote:
What is the minimum age requirement to establish a FICO score?

http://www.myfico.com/CreditEducation/questions/requirement-for-fico-score.aspx

Re: Zero Credit, No FICO

MarineVietVet — Tue, 29 Dec 2009 04:56:19 GMT

@llecs wrote:
@Anonymous wrote:
What is the minimum age requirement to establish a FICO score?
http://www.myfico.com/CreditEducation/questions/requirement-for-fico-score.aspx

I can't find in that link the minimum age to establish a FICO score?????

Re: Zero Credit, No FICO

DI — Tue, 29 Dec 2009 05:06:36 GMT

You need an account to appear for 6 months before a FICO is generated. After that, to raise the FICO score, you need a mixture of credit.

Re: Zero Credit, No FICO

StartinOver — Tue, 29 Dec 2009 05:06:47 GMT

Maybe that is his answer: no age requirement?

Re: Zero Credit, No FICO

StartinOver — Tue, 29 Dec 2009 05:09:15 GMT

Hey, PharmaDude. Please be sure and report back so we can know what score you start with and what makes it go up how much, okay?

Re: Zero Credit, No FICO

llecs — Tue, 29 Dec 2009 05:26:33 GMT

marinevietvet wrote:
@llecs wrote:
@Anonymous wrote:
What is the minimum age requirement to establish a FICO score?
http://www.myfico.com/CreditEducation/questions/requirement-for-fico-score.aspx
I can't find in that link the minimum age to establish a FICO score?????

I assumed that the poster meant "account age" vs. his/her age. AFAIK, there are no age requirements. You technically can have a FICO score shorty after birth if you get a SSN to create a credit file and the parents add you as an AU at that time. Your history would carry over and you'd have a FICO score.