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2 min read

What If I Don't Have a Credit Score?

What If I Don't Have a Credit Score?

Not having a credit score isn't necessarily a bad thing. We all have to start somewhere. Building credit history is important, especially as you begin to think about purchasing a car or a home. Here are three easy ways that you can begin to build your credit history when you have no credit score.

Apply for a Credit Card

Dont Have a Credit Score - a woman happy with her credit card

Credit cards often get a bad rap. However, credit cards can definitely come in handy when you're renting a car or a hotel room.  They are also great for emergency expenses such as car repairs, or travel. 

When applying for a credit card, we suggest starting with a smaller limit, like $500.00 or $1,000.00. Begin charging purchases that you know that you can pay off at the end of each month, such as groceries or gas.  This way, you begin to build a good payment history.

About Savings Secured Credit Cards

Dont Have a Credit Score - a secured credit card

If you have accumulated savings, you can apply for a savings secured credit card. This means that your financial institution will put a hold on your savings account for the amount of the credit line on the card. For example, if you have $1,000.00 in your savings account, and you apply for a $500.00 savings secured credit card, your financial institution will hold or "freeze" $500.00 of your savings. 

You can use the credit card and build your payment history. Savings secured credit cards give you piece of mind, in that you know that if for some reason you get into trouble with the card, the amount in your savings account will pay off the credit card loan. 

Apply for a Personal or Signature Loan

Dont Have a Credit Score - a woman getting a personal loan

A personal loan or signature loan is an unsecured loan with a term. Terms range from 12 to 60 months, or 1 to 5 years. Personal loans are guaranteed by your signature.  If you do not have credit history, and you have accumulated savings for a larger purchase, consider applying for a personal loan for the amount of the purchase. This way, you can use the cash that you would have used from your savings to make the payments on the personal loan, creating credit history. 

How to Build Credit When You Have No Credit Score

Not having a credit score isn’t a bad thing—it just means you haven’t built your credit history yet. The good news? There are easy ways to get started:

  • Apply for a Credit Card: A low-limit credit card ($500-$1,000) helps establish a payment history when used responsibly.

  • Consider a Savings Secured Credit Card: This type of card is backed by your savings, making it a safe way to build credit.

  • Take Out a Personal Loan: A small personal loan with fixed payments can help you create a strong credit profile.

Building credit takes time, but you don’t have to do it alone. First Alliance Credit Union is here to help. Our experts will listen to your story, give you real advice, and guide you toward the best options to start building your credit today. 


Do you know what it will take to pay off your credit cards? 
Use our free calculator to find out.

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