Credit Score is created by your credit accounts such as credit cards, bank loans, car loans or appliance purchases from stores.
When you don’t have any credit or if you had them but they are old and never been used, then your credit score will not come up and a note will appear on your report that says “insufficient credit”.
To build your report and therefore the score follow the advice below:
1- Open a secured credit card. You can use google.com and search for secured credit cards. Be choosey and make sure the fees are not high and the interest rate is reasonable.
2- Become an authorized user of someone else’s credit card but make sure you have the ability to pay the bills. That is the only time the credit card companies report you to the bureaus. The credit card you are going to be the co-signer of should have a balance and should have been around for a while. Also make sure the card owner is not going to default and leave you with the bill.
3- If you have some old credit cards that you have not been used, call the company and ask to get activated again. You may have a chance.
4- Go to www.annualcreditreport.com and get your report and make sure you dispute everything that does not seem correct.