Dude, where's my credit?
May 8, 2015 8:44 PM Subscribe
Last I checked (a bit under a year ago), I had a fantastic credit score. Now, a leasing agent just ran a background and credit check on me and says that I have no credit at all. What gives? Should this worry me? What am I supposed to do about it?
I don't know if any of this is relevant to the question, but just incase:
I am 28 years old, no loans of any sort ever, had a credit card for several years several years ago and paid the balance in full every month (which is the cause of the excellent credit), haven't had a credit card since roughly 2012. I've been primary on several rental leases and utility bills since then. I've also been continually employed since then. I live in the US.
The only weird things that have happened with my finances since checking my credit score are that in November or December, someone tried to spend all of the money on my debit card in Nigeria. My credit union caught it and refunded me the money nearly immediately. Also, I learned in December (in retrospect, December sucked this year) that I screwed up on my 2012 taxes and owed the IRS a few thousand dollars. I paid it within the deadline, they screwed up on their filing of my payment and sent me a late fee notification a few months ago, and I resolved it over the phone with them. I've since gotten documentation that they don't want any more of my money.
I am a financial moron, so please hope me.
I don't know if any of this is relevant to the question, but just incase:
I am 28 years old, no loans of any sort ever, had a credit card for several years several years ago and paid the balance in full every month (which is the cause of the excellent credit), haven't had a credit card since roughly 2012. I've been primary on several rental leases and utility bills since then. I've also been continually employed since then. I live in the US.
The only weird things that have happened with my finances since checking my credit score are that in November or December, someone tried to spend all of the money on my debit card in Nigeria. My credit union caught it and refunded me the money nearly immediately. Also, I learned in December (in retrospect, December sucked this year) that I screwed up on my 2012 taxes and owed the IRS a few thousand dollars. I paid it within the deadline, they screwed up on their filing of my payment and sent me a late fee notification a few months ago, and I resolved it over the phone with them. I've since gotten documentation that they don't want any more of my money.
I am a financial moron, so please hope me.
Have you pulled your three free credit reports this year? What do they say? I'd print those off and take them into your agent.
posted by Beti at 9:08 PM on May 8, 2015 [6 favorites]
posted by Beti at 9:08 PM on May 8, 2015 [6 favorites]
Annual Credit Report.com will give you your credit history from all three credit reporting bureaus for free.
It will cover all open lines of credit as well as any negative marks your report may have.
posted by Karaage at 9:08 PM on May 8, 2015 [4 favorites]
It will cover all open lines of credit as well as any negative marks your report may have.
posted by Karaage at 9:08 PM on May 8, 2015 [4 favorites]
No credit (as opposed to bad credit) would imply that the agent ran your name or SSN incorrectly, as opposed to any actual problem. I'd follow up on that angle.
posted by Itaxpica at 9:27 PM on May 8, 2015 [2 favorites]
posted by Itaxpica at 9:27 PM on May 8, 2015 [2 favorites]
Response by poster: Updates from my threadsitting:
Credit Karma shows credit scores from Equifax and TransUnion (lower than a year ago, but given my lack of credit activity, that's not terribly surprising).
Annual Credit Report says it can't process my request.
The leasing agent confirmed my SSN and the spelling of my last name with the credit check company while I was on the phone with her today.
I still got the apartment, so I'm not worried about having something to show to the leasing agent.
posted by cheerwine at 9:34 PM on May 8, 2015
Credit Karma shows credit scores from Equifax and TransUnion (lower than a year ago, but given my lack of credit activity, that's not terribly surprising).
Annual Credit Report says it can't process my request.
The leasing agent confirmed my SSN and the spelling of my last name with the credit check company while I was on the phone with her today.
I still got the apartment, so I'm not worried about having something to show to the leasing agent.
posted by cheerwine at 9:34 PM on May 8, 2015
credit.com is also free and what I use monthly (you get 1 free score every 30 days) because credit karma kept spamming the hell out of me even though I unsubscribed from all alerts.
Weird that annualcreditreport can't process, that's the one recommended to use by the FDIC. I use the once a year free report on that one.
posted by M Edward at 10:02 PM on May 8, 2015
Weird that annualcreditreport can't process, that's the one recommended to use by the FDIC. I use the once a year free report on that one.
posted by M Edward at 10:02 PM on May 8, 2015
You should be aware that things like utilities and leases don't show up on your credit report unless you're delinquent. Having a closed credit account and nothing else is going to see your credit dropping like a stone. Closed in good standing three years ago should still be giving you some credit history (that is, in my former life as a worker bee in customer service for a credit card, I'd be surprised to see things disappear after three years), but more recent accounts are more heavily weighted.
Not all banks/credit cards report to all credit agencies--if your credit card was from a small bank, for example, and they report to TransUnion and Equifax but not Experian, and the rental agent pulled from Experian...it's not common, but it's happened.
If you want to keep your good credit, you should really do something--lease a car, take out a loan, get a credit card--or this is going to happen more frequently in the future.
posted by MeghanC at 10:04 PM on May 8, 2015 [3 favorites]
Not all banks/credit cards report to all credit agencies--if your credit card was from a small bank, for example, and they report to TransUnion and Equifax but not Experian, and the rental agent pulled from Experian...it's not common, but it's happened.
If you want to keep your good credit, you should really do something--lease a car, take out a loan, get a credit card--or this is going to happen more frequently in the future.
posted by MeghanC at 10:04 PM on May 8, 2015 [3 favorites]
I am 28 years old, no loans of any sort ever, had a credit card for several years several years ago and paid the balance in full every month (which is the cause of the excellent credit), haven't had a credit card since roughly 2012
There you go. You have no current credit accounts, and almost no credit history. Your credit *history* and credit *score* are two slightly different things. It sounds like this person was using imprecise terms, but everyone has a credit score, somewhere between 500-ish (terrible) and 850 (great). Credit history is a factor that goes into deciding your score, but it's also a separate thing: A history of accounts you have had and/or currently have.
As noted above, having and consistently paying some sort of credit card (or loan, I think) is helpful.
In general: This stuff is confusing, but it sounds like there was no mistake, you just have hardly any credit history, and no current accounts of the types credit reporting agencies consider. (Incidentally, another advantage of opening at least one credit card account is that many of the websites will give you access to one of your credit scores for free.)
posted by drjimmy11 at 1:26 AM on May 9, 2015 [2 favorites]
There you go. You have no current credit accounts, and almost no credit history. Your credit *history* and credit *score* are two slightly different things. It sounds like this person was using imprecise terms, but everyone has a credit score, somewhere between 500-ish (terrible) and 850 (great). Credit history is a factor that goes into deciding your score, but it's also a separate thing: A history of accounts you have had and/or currently have.
As noted above, having and consistently paying some sort of credit card (or loan, I think) is helpful.
In general: This stuff is confusing, but it sounds like there was no mistake, you just have hardly any credit history, and no current accounts of the types credit reporting agencies consider. (Incidentally, another advantage of opening at least one credit card account is that many of the websites will give you access to one of your credit scores for free.)
posted by drjimmy11 at 1:26 AM on May 9, 2015 [2 favorites]
If you were actually denied the lease because of your credit history, you have a window of time (60 days, I believe) where the credit bureaus have to provide you with a free copy of your credit report.
posted by radwolf76 at 5:51 AM on May 9, 2015 [1 favorite]
posted by radwolf76 at 5:51 AM on May 9, 2015 [1 favorite]
I too was a financial moron and closed my credit card 10-12 years ago, thinking that it was the smart way to stay out of debt and financial crisis. While that should be true in any logical system, our credit system is not logical. As drjimmy11 states, you need to have some form of credit in order to have a credit history. By closing your credit card, you not only removed your sole line of credit, you got rid of your credit *history*. You also shot yourself in the foot a bit, because "average age of accounts" is a big factor in your credit score, so when you open a new line of credit (or two, or whatever), your accounts are going to be "young" for a while, and it's going to take time for them to age so you can build that credit score.
The best thing you can do right now, ironically, is get a credit card. You might not be able to get a credit card through a bank with no credit history (or if you do get one, it's likely to have an insane interest rate), but you can and should get a secured credit card through your bank. You'll give them $300 or $500 or whatever you can spare, and you will then get a credit card with a credit limit of $300 or $500 or whatever you put down. Use it sparingly, and always make at least the minimum payment (paying it off every month is better), and you will start rebuilding both your credit history and credit score.
Also note that every time you apply for a credit card/loan, the credit check they do will result in a "hard pull." A hard pull will show up on your credit report. A string of hard pulls will indicate that you were shopping around for a line of credit and were maybe turned down repeatedly. That reflects negatively on you, so you want to avoid the hard pulls if you're in a precarious place. (Or even if you're not.) You can always ask a potential lender if they're going to do a hard or a soft pull (which will not show up on your credit report), and decide accordingly whether you want to proceed.
I was in your place about three years ago. I started with a secure credit card. When I got to the point where a bank would give me a real credit card, I got one. I've been steadily using it/paying it off then, and I now have a car loan with a really good interest rate, a credit card with a really good interest rate, and, shockingly, a pretty good credit score.
Note: DO NOT close credit cards because you think you won't use them or you don't want to use them, no matter how much sense that seems to make. That'll lower your average age of accounts, and will ding your score. Just keep them open and make a token purchase every now and then, then pay it off.
Also, your utility bills won't show up on your score. Back in my hard times, I had numerous late (really late) utility bills. They're not on my credit report. Utility companies might well run your credit when you open an account with them, but that's to determine whether your credit history paints you as a reliable customer; if they think you aren't likely to pay your bills on time, they'll probably ask you for a deposit to hold just in case you go delinquent. Still, that's a whole different matter from utility bills showing up on your credit report.
Money you owe the IRS won't be on there, either.
It's a sucky system we have. It doesn't make intuitive sense. Unfortunately, you have to play the game. Start building now, and you'll be in much better shape a couple of years down the line.
posted by mudpuppie at 8:43 AM on May 9, 2015 [2 favorites]
The best thing you can do right now, ironically, is get a credit card. You might not be able to get a credit card through a bank with no credit history (or if you do get one, it's likely to have an insane interest rate), but you can and should get a secured credit card through your bank. You'll give them $300 or $500 or whatever you can spare, and you will then get a credit card with a credit limit of $300 or $500 or whatever you put down. Use it sparingly, and always make at least the minimum payment (paying it off every month is better), and you will start rebuilding both your credit history and credit score.
Also note that every time you apply for a credit card/loan, the credit check they do will result in a "hard pull." A hard pull will show up on your credit report. A string of hard pulls will indicate that you were shopping around for a line of credit and were maybe turned down repeatedly. That reflects negatively on you, so you want to avoid the hard pulls if you're in a precarious place. (Or even if you're not.) You can always ask a potential lender if they're going to do a hard or a soft pull (which will not show up on your credit report), and decide accordingly whether you want to proceed.
I was in your place about three years ago. I started with a secure credit card. When I got to the point where a bank would give me a real credit card, I got one. I've been steadily using it/paying it off then, and I now have a car loan with a really good interest rate, a credit card with a really good interest rate, and, shockingly, a pretty good credit score.
Note: DO NOT close credit cards because you think you won't use them or you don't want to use them, no matter how much sense that seems to make. That'll lower your average age of accounts, and will ding your score. Just keep them open and make a token purchase every now and then, then pay it off.
Also, your utility bills won't show up on your score. Back in my hard times, I had numerous late (really late) utility bills. They're not on my credit report. Utility companies might well run your credit when you open an account with them, but that's to determine whether your credit history paints you as a reliable customer; if they think you aren't likely to pay your bills on time, they'll probably ask you for a deposit to hold just in case you go delinquent. Still, that's a whole different matter from utility bills showing up on your credit report.
Money you owe the IRS won't be on there, either.
It's a sucky system we have. It doesn't make intuitive sense. Unfortunately, you have to play the game. Start building now, and you'll be in much better shape a couple of years down the line.
posted by mudpuppie at 8:43 AM on May 9, 2015 [2 favorites]
I still think that coming back with literally zero credit suggests an error either on the part of the agent or some sort of error in the credit file. I had a problem a few years ago where someone at Equifax transposed two numbers in my address and none of the automatic systems would clear me anymore. The same thing could potentially have happened to any of your data.
My suggestion would be to pay for a credit protector account for the year ($50-100/annually) and then use the expanded customer service that grants you to make sure it isn't that kind of error.
posted by gerryblog at 5:39 PM on May 9, 2015
My suggestion would be to pay for a credit protector account for the year ($50-100/annually) and then use the expanded customer service that grants you to make sure it isn't that kind of error.
posted by gerryblog at 5:39 PM on May 9, 2015
Oh, joy - this just happened to me today as well. I have excellent credit going back decades, with plenty of steady use, and Equifax and Transunion both love me. Experian doesn't seem to think I exist. I'm pretty sure whatever this is happened within the last month or so - I switched wireless service not long ago and that involved a credit check, with no problems. Today, I'm screwed. Yay.
posted by current resident at 7:59 AM on May 15, 2015
posted by current resident at 7:59 AM on May 15, 2015
And I just got it sorted - turns out there was a freeze on my Experian credit report (I have no idea how it got there - had to be a glitch), and removing the freeze cleared it right up. Phew.
posted by current resident at 8:56 AM on May 15, 2015
posted by current resident at 8:56 AM on May 15, 2015
« Older Am I judgemental for not dating people who... | Kondo-ing my place. Should I keep books from grad... Newer »
This thread is closed to new comments.
It's also possible that your leasing agent spelled your name wrong or got your SSN wrong.
posted by clone boulevard at 8:50 PM on May 8, 2015 [4 favorites]