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Who falls into the category of Credit Invisibles?


In 2015, a study revealed that 26 million Americans, or roughly 10% of adults, are “credit invisible,” meaning they lack any credit history with the three major nationwide credit reporting agencies. This lack of visibility disproportionately affects Black and Hispanic individuals, as well as those in lower-income areas, limiting their ability to generate a credit score due to insufficient or absent credit history.


We’re now sharing key insights and a guide for individuals who are either new to credit or aiming to rebuild their credit profiles.


Discover more through our summary on credit invisibility and our comprehensive action item checklist.


Credit reports and scores are pivotal for American consumers, but there are strategies available for effectively building credit:

Key Considerations

  • Ensure timely bill payments, as payment history is crucial for a good credit score.

  • Maintain credit utilization below 30% of your total credit limit to avoid negative impacts.


Products to Aid in Credit Building

  • Secured credit cards: Function similar to regular credit cards but require a deposit that serves as your credit limit. Usage is reported to credit agencies, aiding in credit building. Many offer a pathway to unsecured cards after demonstrating consistent payment behavior.

  • Credit builder loans: Offered by financial institutions, these loans help establish credit by locking a small loan in a savings account while you make payments, which are reported to credit agencies. At the end of the term, the total amount paid is returned to you.

  • Retail store credit cards: Often easier to obtain, these cards can help build a credit history with responsible use.


Reporting Alternative Payments

  • Explore services that report non-traditional payments like rent or cell phone bills to credit agencies, potentially enhancing your credit history. Research any associated fees or conditions.


Accessing Credit Reports

  • You’re entitled to a free annual credit report from each major credit bureau via annualcreditreport.com. Regularly reviewing your credit report is essential for identifying and correcting inaccuracies.


Correcting Report Errors

  • Actively dispute any inaccuracies on your credit reports with both the credit reporting agency and the information provider. They are required to investigate and correct verified errors at no cost to you.


For further assistance on credit reporting or to address issues with financial products or services, visit Ask CFPB or submit a complaint through consumerfinance.gov/complaint or call 855-411-2372.


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