Can a Senior Citizen Not Have a Credit History

It is possible for a senior citizen to not have the credit history even though you have purchased houses, pay the utility bills along with all your taxes. In order to have a credit report with the National credit bureau you need credit activity to be reported.  Different national credit agencies use different criteria for determining a credit score.  Some require credit activity to be reported within the last six months while others may require it to be reported within the last 24 months.  Your credit history can disappear altogether if you have not had credit agreements for a long time.

A credit history is created for a person the first time that they open a credit account. The history keeps getting updated as long as you keep using your credit account and even for some time after you close it.  An active credit account will stay on your credit history as long as you keep using it, while a paid off and closed account will stay on your credit history for a period of 10 years provided that the account had no negative history.

On the other hand negative information is deleted seven years from the original delinquency date.  If you close an account that was reported as delinquent to the National credit bureau it will be deleted seven years from that particular date.  The same holds true for any credit account that was written off by that credit and turned in to the collection agency.  This account to will be deleted seven years from the original delinquency date.

So if you opened a credit card account or took out a mortgage for the purchase of a home these accounts will seize to build your credit history if they have been inactive paid off more than 10 years back. The use of credit report as a tool for lenders to determine the risk of an individual has increased over the last few years..  More and more lenders use the credit scoring model to make decisions about individuals qualification for a loan.  However, in the past it was not uncommon for many creditors to not report their consumer credit data to the credit bureaus.  Is possible that the creditors you dealt with did not report your credit accounts to the credit bureau.  For this reason you may have never had a credit history at all.

Payments like utility bills, phone bills and taxes are not reported to the credit bureau. The reasons for this are that some states prohibit the reporting of utility payments and also that these payments while resembling typical credit on many ways, are not considered as good the representative of a person’s creditworthiness as traditional credit.

If you are concerned about not having a credit history at all the only way to begin to do this is to start a credit account such as a credit card and start using it. When this data gets reported to the credit bureaus you will once again have a credit history that you can build over time with moderate and responsible use of your credit.  Be sure to pay down all your balances every month in order to avoid heavy interest and financial charges.  Make all your payments on time and very soon you will have a positive and healthy credit rating with the National credit bureaus.

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