How Many People Are Credit Invisible in the US? (2024)

FAQs

How Many People Are Credit Invisible in the US? ›

Credit Invisible Total Population. The credit population of the U.S. can be broken down by location and credit classifications. Invisibles account for 11% of the total population, or 26 million U.S. residents. Unscorables account for 8% of the total population, or 21 million U.S. residents.

Approximately one out of every ten adults does not have a credit history with a national credit bureau: Equifax, Experian or TransUnion. More than 19 million consumers—about eight percent of the adult population—have unscored credit records.

According to the U.S. Government Accountability Office, as many as 45 million Americans are “credit invisible,” meaning they have no credit history.

Millions of Americans have little to no access to credit. One of the main reasons for this is the fact that they don't have a credit score or have thin credit files. Of the 49 million people who don't have a credit score, 28 million are “credit invisible” and 21 million are “credit unscorable”.

Establishing a credit history is an important financial step to take. Without credit, you may be deemed “credit invisible,” which can be as difficult as it sounds. About one in 10 adults, or approximately 26 million Americans, are credit invisible, according to the Consumer Financial Protection Bureau.

According to a survey conducted in 2023, only a third of consumers in the U.S. had no debt, with the rest of them mentioning, other than mortgages, credit cards and car loans as their main sources of debt.

But when it comes to credit, being invisible can be a liability that can hold your business back from getting the capital or partnerships it needs to grow. When lenders can't find a credit report about your business (or you personally), they may be hesitant to lend you money.

Your 800 FICO^® Score falls in the range of scores, from 800 to 850, that is categorized as Exceptional. Your FICO^® Score is well above the average credit score, and you are likely to receive easy approvals when applying for new credit. 21% of all consumers have FICO^® Scores in the Exceptional range.

Fortunately, no one's credit score can equal zero – the range for FICO scores is 300-850 – and even people with poor or bad credit have a credit score of at least 300. A “no credit score” means there is insufficient information for a credit score calculator to compute a score.

The survey found that 48% of Americans depend on credit cards to cover essential living expenses. This is more common among younger generations: 59% of millennials use credit cards for living expenses.

What is ghost credit? ›

Someone who lacks a credit history with one of the nationwide credit reporting companies is considered "credit invisible" or a credit ghost. "Unscored" consumers have a credit file, but the data is too sparse or too old to produce a credit score.

Thin credit files or credit invisibility are the main causes of subpar credit ratings for 71 million Americans. Of them, 16 million are credit invisible, while 61 million have thin credit files with fewer than four credit accounts.

Consider yourself in “good” shape if your credit score is above the average for people in your age group. Given that the average credit score for people aged 18 to 25 is 679, a score between 679 and 687 (the average for people aged 26 to 41) could be considered “good”.

Since income is not one of the five factors that determine a credit score, the wealthy are just as likely to have a low credit score as the people with lower income. The rich can miss payments, rely too heavily on credit, and open too many new accounts, all of which may lower their credit score.

Approximately 11 percent of Americans are deemed credit invisible, making it difficult to get access to affordable credit and to build wealth.

Though this number — prone to change over the years or even months — is of huge importance, many people are in the dark about it. According to a new survey conducted by BadCredit.org, nearly one-third (31%) of Americans don't know their credit score.