Building Credit with No Credit History

Updated on January 14, 2020

In most countries and institutions, getting credit requires you to have an existing credit history. However, this should not discourage you as there exists a variety of proven workarounds to this situation. First, let us review how major credit bureaus view people who have not used credit yet or those who have used it only a few times over a significant period.

They have categorized these types of credit users as either ‘credit invisible’ or ‘unscorable’. The ‘unscorable’ refers to those who have occasionally used a credit card and paid off some loan years ago. This is because there is insufficient information to generate a credit score on such people. The ‘credit Invisibles’ are those that have no credit history at all, be it credit card use, loan acquisition, or a house mortgage payment. 

Lenders usually search for your credit information lack of which is usually regarded as bad credit history making it difficult to get a loan for your car or home. In as much as this may seem unfair but lenders are simply trying to determine if you can commit to making timely payments over a long period. 

Here are some of the ways to improve your borrowing profile as you build a positive credit history: 

Getting a store card

A lot of gas stations and retailers have branded credit card which they give to all their customers regardless of their credit history. By making use of these cards while limiting yourself based on your liquidity, you can pay off the bill when the month ends. As part of your credit history, you can then use the department store customer credit history as evidence with the credit bureaus. Click here to get more information on how to actualize this approach. 

Applying for a bank secured credit card

Banks can award you a ‘secured’ credit card after making a small deposit. With this card, the bank can tap your account as a result of failure to pay a bill. The credit limit is usually set at the amount you deposited. Creditworthiness with your bank is built by timely payment of your outstanding bills without touching your security money. This continually enhances your credit score which then enables you to apply for an unsecured account the moment you achieve a strong credit score. 

Utilize a student credit loan

If you are a conscientious spender, you can make use of student credit cards as a means to build your credit history. However, these cards have low borrowing limits against their high-interest rates. Therefore, you should only apply if you can pay off the monthly bills. 


Credit cards enable you to spend money you don’t have and pay it back later. Credit bureaus, therefore, need to verify your creditworthiness before allowing you to use their credit services. As discussed in this article, there are a couple of ways of getting started as you seek to develop a credit history. Other methods of improving your credit history without a credit card include applying for a credit-builder loan, getting a co-signer, reporting utilities and rent payments to credit bureaus among others. Click here to get further information on how to get started. 

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