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How to Become Scoreable and Build Your Credit

What Does It Mean to be Unscoreable?

If you don’t have a credit history in the U.S. or haven’t used credit recently, you might not be scoreable by the main credit scoring models. This can make it difficult to qualify for new credit cards or loans with favorable terms. However, there are several ways to establish your credit or become scoreable again.

5 Ways to Become Scoreable

Here are five simple and low-cost options to add new information to your credit reports and become scoreable:

1. Open a Secured Credit Card

Secured credit cards are designed for people who are new to credit or rebuilding their credit. They work like regular credit cards but require a refundable security deposit. Use the card for small purchases and pay the bill in full each month to build credit without paying interest.

2. Take Out a Credit-Builder Loan

A credit-builder loan is a secured loan that helps you build credit. The lender places the loan funds in a locked savings account, and you gain access to the money as you make payments. Ensure the lender reports to all three credit bureaus to build your credit effectively.

3. Become an Authorized User on Someone Else’s Credit Card

If someone adds you as an authorized user on their credit card, the account history might be reported to the credit bureaus under your name. This can help you establish credit without requiring a credit history or credit check.

4. Get a Cosigner on a Loan

Adding a creditworthy cosigner to your loan application can help you qualify for a loan. Both cosigners are equally responsible for the debt, so it’s best to cosign with someone you trust completely.

5. Sign Up for Experian Go™

Experian Go™ helps you establish your Experian credit report and provides recommendations for improving your credit. You can also use Experian Boost® to add eligible rent, utility, phone, and streaming service payments to your credit history.

How to Use Credit Responsibly

Becoming scoreable is just the first step. Here are some tips to improve your credit scores over time:

• Pay all your bills on time. On-time payments are crucial for your credit score.
• Don’t use a large portion of your credit limit. A lower credit utilization ratio is better for your score.
• Limit how often you apply for new accounts. Too many new credit applications can hurt your score.

Track Your Progress for Free

Credit scoring models consider the age of your accounts, so it takes time to build good credit. Monitor your progress with Experian’s free credit monitoring feature, which includes a monthly FICO® Score, real-time alerts, and insights on what’s affecting your score the most.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We’re here to help you navigate your credit journey and achieve your financial goals.

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