26 million people are considered to be “credit invisible” in the United States. “Credit invisibility” is when a person has no, or very poor, credit. This causes major issues, from loan approvals to housing options. Here are some tips on avoiding it!
#1: Check Your Credit Report
It's good to start with a clean slate. First, check your credit report to ensure there aren’t mistakes on it. You’re entitled to six free reports annually by using FreeCreditReport.com.
If there’s something incorrect, file a dispute with whichever credit bureau, such as TransUnion or Experian, reported the error.
#2: Try a Secured Credit Card
If you don’t qualify for a standard credit card, try applying for a “secured” credit card to build credit. Secured credit cards are easier to be approved for, as the credit they offer is based on money you already have.
#3: Pay Your Bills On Time
Paying your bills on time is one of the best ways to build credit. Some programs, like Experian Boost, can get your bills to count directly toward your credit score as well!
Credit invisibility is another hurdle that could prevent us from achieving the financial freedom a good credit score can provide. If you or someone you know is credit invisible, these steps could be the way to fix that.