Credit Invisible: The New Term in the Finance Market

Have you recently heard the term credit invisible? Wondering what is it? Well, folk, it is nothing but having an insufficient or non-existent credit history that makes it difficult to access credit and obtain favorable terms. Want to know more about it? Keep reading the article to know more.

Credit Invisible:

Well, folks, as we know today, our credit history plays a crucial role in many aspects. This includes obtaining loans to secure a favorable interest rate. Hence, a strong credit history is extremely important when it comes to financial needs and requirements. But as we speak, there is a significant part of the population that remains largely unrecognized by the traditional credit reporting system, and they are known to be credit invisible.

Credit Score and Credit Invisible:

We know that a credit score is a three-digit number that the banks, financial institutions, and lenders check before they give out secured loans. However, for having a credit score, you will need a credit history. When there is no credit history, you become credit invisible, and the lender has no point of reference based on which they can determine if you are a good debtor or not.

Hence, credit invisible essentially means that Experian, Equifax, and TransUnion, which are the three major credit bureaus, have no credit history of yours. That is the reason why they can’t determine your creditworthiness, and you end up being in a tough spot, just as a person with a poor or fair credit score would be.

So, it is important to maintain a credit card and a good credit score which will help you in getting a lot of financial favours in the future. Let us dig deep into the topic of credit invisibility. Head to the next section of the article to decode a few more facts about credit invisibility.

Credit Invisibility:

In this section of the article, we will be discussing about credit invisibility. Since you all now have a good understanding of the term ‘credit invisible,’ the word invisible gives away the meaning here. Credit invisibility is that there is no trace of your credit history in your financial records of yours. However, the most common reason for this is a lack of credit history. Hence, to become visible to the credit system again, such people can take a credit builder loan or a secured credit card. They can build a credit history as well as get a credit score.

However, you can easily get confused with credit invisible and credit unscorable. Hence, you must make sure you understand the difference. While a credit-invisible person has no credit history and is invisible to the credit system, a credit unscorable person is someone who has a credit history. However, either it is very old information or not enough information to calculate a credit score. So, folks, you must understand the difference and the clear meanings between both terms.

Why Being Credit Invisible is Bad?

Now that you have a good understanding of what it means to be credit invisible, you must be wondering if it is bad to be credit invisible. Well, folks, we are afraid that it is true. There are a few reasons why it is bad, and here are the reasons behind it:

Landlords may not be renting out their property to you because they, too, sometimes check your credit history to determine if you can manage payments or not.

You might be forced to pay more for car insurance as credit score is an important factor for an insurance company for your evaluation.  Other utility service providers may also charge you more than usual as you are credit invisible and would have come as a riskier customer.

When you are looking for a job in the finance sector, you must know that there are certain job roles that might not be open to you if you are invisible to the credit system.

As your credit history is a mystery, you might not be able to find any givers. Obtaining loans or other credit options may no longer be an option for you. This means no credit cards no mortgages, among other things.

Now that you have a clear understanding about invisible credit and the way it is a bad indicator. It is now time to look at some of the credit invisibility statistics all across the globe. Have a look at it.

Credit Invisibility Statistics:

Many people have the opinion that being credit-invisible is not a big deal. However, credit invisibility is a major issue that affects millions of people, and this is not just in the US but around the world. So now we will be looking at some Credit Invisible statistics for a better understanding of the situation.

  • 40% of credit-invisible people are those who are aged less than 25. 64.5% of people aged 18 or 19 are credit invincible, while only 0.4% of them are credit unscorable. 28.9% of people aged over 70 are credit invisible, and additionally, 4% of them are credit unscorable.
  • Almost 30% of people from poor neighborhoods are credit invisible, while 16% are credit unscorable. In high-income neighborhoods, these percentages are 4 and 5%, respectively.
  • 28 million people in the US come down as credit invisible, and a further 21 million people are credit unscorable. They also make up 19% of the total population of the US. 11% by credit invisible and 8% by credit unscorable.
  • Of all communities, black people have the highest credit invisibility rate at 28%,  followed by 26% of Hispanic people and 16% of white and Asian people.

These are the stats when it comes to credit invisibility and credit underscorer. In the next section of the article, we will be showing how the credit invisibility is evaluated.

How is Credit Invisibility Evaluated?

We have already mentioned that being credit invisible is not a great sign, especially when it comes to getting loans and securing interest, among other things. However, they cannot be ignored fully. Folks, you must know that there are still ways for people with credit invisibility to get access to financial aid, but for that, they would be evaluated a bit differently. Now, let us look at the way credit invisibility is evaluated:

  • Income Data: If you are someone whose income has been in the good books and consistent for quite some time now, then you can use that to show yourself to be a good debtor.
  • Asset Ownership: Your account balance can also play a strong role here. If you can show the creditor that you have enough resources to pay off credit amounts, then they will not think twice before giving you a loan or a credit card.
  • Payment History: By looking at the non-credit card bills paid by a person, one can get a good idea of how good a person will be at paying loans or credit card payments. Payments of utility bills and child care bills, among others, can be considered here.

These are the ways by which you can evaluate yourself in front of creditors if you are credit invisible.


Being a credit invisible poses significant risks and challenges, but you must know how to defend yourself in front of creditors. In this article, we have briefly discussed credit invisible, credit invisibility, and other additional information. That’s all, folks. I hope the article helped you in getting all the information you needed.

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