You may be wondering why I don’t have a credit rating or a zero credit rating. Lack of credit rating can be a bit frustrating at first. But don’t worry, because you can create your credit rating from scratch.
Understanding why your credit rating is not zero or zero will help you better define your financial situation. So, let’s first look at what a credit rating means and then the possible reasons why you don’t have a credit rating.
Once you understand why your credit rating isn’t and appears to be zero, you can start taking other steps to build your credit rating and increase your score.
Understanding Credit Rating
A credit rating is a number with several digits in your credit report. Your note can be updated by changing over time. This credit rating update, which takes place every 45 days, is based on factors such as whether you pay your debts to all credit products you use, such as a credit card or consumer loan on time, or your existing debt and limit utilization rates.
In simple terms, as a rule, the higher your credit rating, the more willing banks are to give you credit products. For example, you can get credit easier or you can increase your credit card limit more easily.
At the same time, a high credit rating does not guarantee that you will always receive credit or raise your credit card limit. In fact, both credit usage and credit card purchase or limit increase requests will be based on factors such as income. You shouldn’t forget that.
Why is your Credit Rating Not Available?
If you don’t have a credit rating and appear zero when the query is made, there are usually two reasons:
You have no credit history
Your credit history is too old
Let’s take a look at each of them in more detail.
No Credit History
To have a credit rating, you must have a credit history. If you don’t have a credit history, your credit rating will not be calculated. That is, you will not have a credit rating or appear as zero in the query.
The credit history begins when banks report information about you to the Credit Bureau. If you have never used credit products such as credit card, credit, overdraft account, you will not have a credit history to be reported to the office. This means that you will not have a credit rating.
You must start creating your credit history to calculate your credit rating. One of the best and easiest ways to do this is to start using a credit card. For example, if you take a credit card and start using it, your credit history will be generated, your bank will notify the office and your credit note will start to calculate.
However, of course, it is important to keep your credit rating as high as creating a credit rating. This is because your bank will tell the office whether you have made your payments on time and how responsible you are using your credit product. As these notifications form your credit history, it is important to pay attention to factors that affect your credit rating, such as regular payments.
It is easy to create a credit rating, but it is difficult to eliminate the problems that may arise as a result of not using the credit products responsibly. Because it takes several months to create a credit rating from scratch, but correcting a bad credit rating can cost years. Therefore, you should know that it is important to use your credit products responsibly as well as to build your credit rating.
You can find the most important tips to keep your credit rating at an ideal level in our article How to upgrade your credit rating.
Your Credit History Is Too Old
You may have used credit products before. You had a credit note at the time, but not now. This is most likely due to the fact that your credit product accounts have been overdue.
That is, when you close a credit account (for example, when you finish your credit payment or close your credit card to never use it again), your credit product usage information will remain in your credit report for 6 years. However, after 6 years, this information times out and is no longer included in your credit report. Because you no longer use credit products, and as such, your bank cannot notify the credit bureau to maintain your credit history.
Therefore, if you close all your credit product accounts and do not open new accounts, you will no longer have a credit history and credit rating after approximately 6 years. Because of this situation, you should continue to use credit products in order to continue calculating your credit rating and keep your credit history active.
You can continue to use a credit card to keep your credit history active. If you use your credit card responsibly, your bank will notify the office and your credit rating will continue to be calculated. Opposite
for Not Having a Credit Rating