Ever feel like you’re invisible? 11% of adult Americans actually are.. credit invisible that is! Credit invisible is a term used for people who have no credit history at any of the three national credit bureaus.
Isn’t it good to not have any credit card debt? Yes. It’s wonderful to not have any credit card debt. However, if you have no credit history, you can not get a credit score. A credit score is a calculation that tells lenders how likely you are to pay them back. A good credit score helps you get lower interest rates and that can make a significant difference over time.
If you’re credit invisible it appears that no one has loaned you money (or you have no “payment history”). Payment history is the largest part, 35%, of a FICO credit score. If it appears that no one has lended you money, then there’s no one who can vouch for you by telling others that you pay people back.
Good news! Extension has developed a new Money Matters module around this exact topic. How to Build Credit is available for free! This resource includes information on how you can build up your credit using secured credit cards, how credit scores are calculated and how you can raise yours.
Building credit is also taught in Extension’s Rent Smart class. Amy Mangan-Fischer, our Human Development and Relationships educator, teaches Rent Smart at the Fond du Lac County Jail, Beacon House, and St Katherine Drexel Shelter. To learn more about Rent Smart, visit the financial capability section of our Extension website: https://fonddulac.extension.wisc.edu/family-financial-security/.