A no-hit credit score means that there is not enough information on the credit report to calculate a credit score. This usually is because the person has not built up a credit history.
Number of Accounts
In order to calculate a credit score, there must be at least one credit or loan account on record with the credit bureau.
Length of Credit History
Once a loan or credit account has been opened, it takes six months of payment history to calculate a credit score.
Closed Accounts
Accounts that have not been updated in the past six months will not receive a credit score. Accounts that have been paid off or closed are no longer reported.
Deceased Customer
If a creditor receives information that the customer has died, this information is reported to the credit bureau. The credit score no longer will be calculated.
Credit Bureaus
There are three credit bureaus that calculate credit scores: TransUnion, Equifax and Experian. If one of these has a no-hit score, another might have been able to calculate a score. To get a free copy of your credit reports, go to www.annualcreditreport.com.
References
- Annualcreditreport: Free Credit Reports
- Fair Isaac Corporation. "What is a Credit Score?" Accessed Oct. 11, 2020.
- VantageScore Solutions, LLC. "Who Uses Credit Scores?" Accessed Oct. 11, 2020.
- VantageScore Solutions, LLC. "Free Score Providers." Accessed Oct. 11, 2020.
- Fair Isaac Corporation. "What's In My FICO Scores?" Accessed Oct. 11, 2020.
Writer Bio
Sara Huter is a professor of economics. Her background also includes risk management in the banking and energy industries with expertise in credit scores. Huter received an M.B.A. in finance from Texas A&M University and a B.S. in information systems from Kansas State University. She has been writing for over five years with work at Popsyndicate.com, WickedWordSmith.com and Simplejoy.com.