Are You Credit Score Invisible? Credit Invisibility
Are you credit score invisible?
A recent publication from the CFPB stated concerns about credit invisibility. According to the CFPB 19.4 million Americans, representing 8.3 percent of the adult population do not have enough credit to generate a credit score. Are You Credit Score Invisible?
Remember that with FICO® you need a six-month credit history with at least one open credit card before you can get a FICO® score. I think the CFPB is talking about people who are just starting out with credit or people who don’t use credit very much.
Maybe those people don’t want a credit score and that’s fine for them. They should consider that credit scores are used for auto insurance, homeowners and other insurance policies. Consumers should keep their credit profile open and active to avoid credit invisibility. One great way to do that is to have a utility bill or cable bill automatically paid with a credit card. If a consumer wanted to keep a low credit profile they could use just one credit card and then every month pay their credit card in full. That way you keep at least one account open and active so you avoid credit invisibility. That is a quick tip on credit invisibility.
Be sure to check out my www.getloanready.com website it is free, there are worksheets and videos to help you take six steps to a better credit score. They can really help anyone and I hope you take advantage of it.
If you want to see more videos about credit and credit scoring check these out at www.thecreditguy.tv. If you are a mortgage lender please share this on your Facebook or LinkedIn page. If you have any questions, leave them down below I’d be happy to answer them.