I have been paying on my car for three years through American Honda my mom is the co-signer I was wondering why my credit score is still at zero when I have never missed a payment or been late?
Country/State/Province of question: united states
I have tried to get a home loan but cant because I have no credit and I dont understand why they have not reported my credit history
That is a good question and I will try to answer it for you.
I am not sure if you have gotten a copy of your free credit report that you are entitled to by law each year, but if you haven't you can use this link to get one -
read the page and then follow the links. Don't use any of the so-called "free" services you see on TV or the internet or hear about on the radio as they are usually only free if you buy some thing (I know, right?).
Anyway, the main reason that may come up is that your co-signed loan is really in your mom's credit history. Since it is her credit that actually secured the loan to begin with, her credit will benefit form the co-signed loan. Sorry, but that is usually the case.
If you truly want to build credit you should try to get something in your name only. Maybe a small bank loan or credit card with a very low limit. Also, you should get a phone or some other utility in your name if possible (we used to have a saying in the lending business - "no phone, no loan"). If yo are making payments on a student loan, it should be reported as well.
Once you get your credit report, look to see what is on it. Your mom should do this too to verify where the Honda loan is being reported (if at all).
I hope this helps. If you think this answer is beneficial, please let me know by providing positive feedback after your acceptance.
One last thing - guard your credit like it is your life! Look at your credit report every year and never be late on a payment. It would be great if you could go through life without needing credit, but sometimes it's unavoidable. Do your best, XXXXX XXXXX keep your record clean and use credit as little as possible (I know, I'm being preachy, but trust me, I'm telling the truth!!)
Thank you so much you have helped me alot and I will look into the credit reoprt website you gave me!
It was my pleasure. Is there anything else?If not, please accept the answer and leave feedback if you want to,I hope the rest of your weekend is great!
Licensed CPA, CFO of Businesses from $10-200 mil., Entrepreneurial coach & consultant - 17 yrs exp.