Skip to content

Improving credit scores for those who don’t use credit

May 14, 2015

Here’s a great idea…

“Pay as you go” is a tried and true philosophy for good money management.  However, it’s been tough for non-credit folks to qualify for good interest rates, or sometimes, even to obtain loans. Coming soon – a good track record of paying your bills on time will increase your credit score.

In other words…

Limited or no use of credit is an increasing trend among today’s consumers. However, credit scores are based on use of credit or one’s credit history.  Lenders use credit scores to determine eligibility for loan amounts and to determine which applicants qualify for the best interest rates. Now, there’s good news for consumers who have limited or no credit history.  Regular payments for phone and utility bills are being considered as proof of responsible money management behavior.

How this applies to you…

It’s always been the case that late payments on any bill could ding your credit score, but until recently, regular payments of utilities didn’t help to improve your score. The Fair Isaac Corporation (FICO) developed credit scores to determine the risk of lending to a potential borrower. FICO data analysts recently determined that property records, telecommunications, and utility information are also reliable predictors of a consumer who will be a good credit risk. A new credit scoring method that incorporates this data is currently being pilot tested.  FICO anticipates that it will be available more extensively by year’s end.

To find out more…

Visit to obtain your free report and to learn more. You’re entitled to a free annual credit report from each of the three bureaus – Equifax, Experian, and Transunion.  Check one every few months to monitor your credit report throughout the year.

The Cooperative Extension Service is your source for reliable, research-based information to improve quality of life. Discover the latest recommendations for creating a spending plan, managing credit, building your savings and investing for the future. Learn more at

Comments are closed.

%d bloggers like this: