How Many People Are Credit Invisible in the US?

Name: How Many People Are Credit Invisible in the US?
Item: How Many People Are Credit Invisible in the US?
Author: Chris Lacagnina

Nearly 50 million people in the United States are considered credit invisible or unscorable. Learn which factors can increase someone’s chances of falling into one of these categories.

By Chris Lacagnina

Edited by Katrina Raenell

Updated: November 5, 2024

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Credit Invisibility Statistics: Age, Background and Location

A reported 26 million people in the U.S. are currently considered credit invisible — not having a credit record — and another 21 million have unscorable credit. Both credit invisibility and unscorable credit can lead to issues accessing credit in the future. Lenders are much less likely to issue credit to the 49 million Americans with unscorable credit or who are credit invisible.

Credit records through a nationwide credit reporting agency (NCRA), including TransUnion, Equifax or Experian, are required for credit scoring. An individual with unscorable credit can fall into one of two categories: They have too few accounts or haven’t provided enough information to obtain a credit score or they haven’t had any recent credit activity, so their records have become “stale.” Learn more about the U.S. demographics of those who are considered credit invisible or unscorable, as well as our experts’ insights on credit scoring.

There are about 28 million credit invisible people and 21 million credit unscorable people in the U.S. These categories comprise about 19% of the population.

Credit invisibility and unscorability more frequently impact minorities: 26% of Hispanic consumers and 28% of Black consumers, compared to just 16% of white and Asian consumers.

Credit invisibility and unscorability are more prevalent in rural areas, which house more consumers who have never obtained an NCRA credit report compared to those who live in metropolitan and micropolitan areas.

Youth is another key factor in credit invisibility: About 40% of “invisibles” are under age 25.

Sources:

OliverWyman

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. Income rates by community have a major impact on these categories. Nearly 30% of consumers who live in low-income neighborhoods are considered credit invisible and an additional 16% are considered unscorable. In higher-income neighborhoods, these numbers are just 4% and 5%, respectively.

Credit Invisible by Ethnicity

The credit population of the U.S. can be further broken down by ethnicity. A reported 14% of Black Americans and 16% of Hispanic Americans are considered credit invisible, compared to 9% of white Americans and 10% of Asian Americans. In terms of unscorable credit, 13% of Black Americans and 10% of Hispanic Americans are unscorable, compared to 7% of white Americans and 6% of Asian Americans.

About 14% of U.S. residents who fall into the “other ethnicities” category are credit invisible, and 12% are unscorable.

Credit Invisible by Age

Credit invisibility in the U.S. can also be broken down by age category. The largest group of credit invisibles by far is comprised of residents aged 18 to 19, at 64.5% of all invisibles. However, only 0.4% of unscorables fall into this category.

The next-highest percentage of credit invisibles fall into the age 20- to 24-years-old category, at 20.2% of all invisibles. Just 3.8% of all stale or unscorable credit holders fall into this category, though. At the other end of the spectrum, residents aged 70 or older make up 28.9% of all credit invisibles, and 4% of those with stale or unscorable credit.

Credit Invisible/Unscored by Age

Age Group	Credit Invisible	Stale-Unscored	Insufficient-Unscored
18 to 19	64.50%	0.40%	18.90%
20 to 24	20.20%	3.80%	11.50%
25 to 29	8.90%	5.90%	5.90%
30 to 34	5.50%	6.10%	4.90%
35 to 39	7.60%	5.60%	3.90%
40 to 44	5.10%	5.40%	3.40%
45 to 49	7.40%	4.70%	3%
50 to 54	6.40%	4%	2.40%
55 to 59	6.30%	3.40%	1.70%
60 to 64	2.70%	3.10%	1.30%
65 to 69	8.60%	2.30%	0.90%
70 to 74	11.10%	2%	0.60%
75 years over	17.80%	2%	0.40%

Source: Data Point: Credit Invisibles. CFPB 2015

HOW AGE RELATES TO CREDIT INVISIBILITY

Youth factors into credit invisibility — 40% of invisibles are under the age of 25.
While about 35% of 18- to 19-year-olds are credit visible, most start becoming visible a few years later. Visibility spikes to 91% in the 25- to 29-years-old age bracket.
Student loans, student credit cards and guarantor credit make most teens credit visible early on since they don’t require any prior credit history to be obtained.
Despite teens’ options to become credit visible early on (e.g., student loans, etc.), their opportunities may be limited by their socio-economic background. Living in low-income neighborhoods, not having a relative who can serve as a guarantor, and not being involved in an educational or training program, such as college, can all lead to a denial of credit.

Credit Invisible by Age and Ethnicity

Credit invisibility can be broken down even further, by age and ethnicity. Though the numbers are fairly similar between 18- to 19-year-old white and Asian Americans (at 63.9% and 65.6%, respectively) and Black and Hispanic Americans (at 66.6% and 64.0%), the similarities end there. In the age 25 to 29 range, only 6% of white Americans and 9.2% of Asian Americans are considered credit invisible. However, 11.1% of Black Americans and 15.5% of Hispanic Americans within this same category are already credit invisible.

The numbers are also much different for those in their senior years. For those aged 70 to 74, 9.4% of white Americans and 15.5% of Asian Americans are credit invisible. At the same time, 17.8% of Black Americans and 18% of Hispanic Americans are invisible within the same group.

Credit Invisible by Age and Race or Ethnicity

	White	Black	Hispanic	Asian	Other
18 to 19	63.90%	66.60%	64%	65.60%	65.30%
20 to 24	18%	22%	23.50%	26.10%	21%
25 to 29	6%	11.10%	15.50%	9.20%	9.30%
30 to 34	3.30%	6.70%	11.40%	2.50%	5.50%
35 to 39	6.70%	8.40%	11.30%	3.90%	7.30%
40 to 44	4%	7.30%	8.60%	1.40%	5.60%
45 to 49	6.80%	10.70%	8.50%	3.40%	9.50%
50 to 54	5.60%	10.70%	7.50%	3.70%	7.90%
55 to 59	5.30%	11.20%	8.90%	4.20%	8.10%
60 to 64	1.50%	8%	6.60%	3%	4.60%
65 to 69	7.30%	14.80%	13.60%	9.10%	10.20%
70 to 74	7.30%	17.80%	18%	15.50%	13.40%
75 years over	16.50%	23.90%	23.90%	22.50%	20%

Source: Data Point: Credit Invisibles. CFPB 2015

Credit Invisible by Geography

Location correlates to credit invisibility and unscorability as well. Among the categories of rural, micropolitan (which contains urban areas), and metropolitan, those who live in rural areas scored the highest by far for credit invisibility, at 15% of inhabitants. Next-highest in terms of invisibility are those within micropolitan or urban areas, with about 12% considered credit invisible. By comparison, only about 6% of folks who live in metropolitan areas, but not within the principal city, are considered credit invisible.

Credit invisibility and unscorability can be higher in rural and urban areas for several reasons, one of which is a lack of access to banking institutions. Poverty levels are also statistically higher in rural and urban areas than in metropolitans, meaning residents may not have access to loans or education. Without these resources, building a credit history can be challenging.

Credit Invisibility FAQs

Credit invisibility and unscorability are major problems for many residents in the U.S. Some folks may not even realize they fall into one of these categories and the terms can be confusing or misunderstood. MoneyGeek answered some of the most common questions about credit invisibility and unscorability below to help demystify these topics.

What does credit invisible mean?

Credit invisible refers to a person who doesn’t have any records through a nationwide credit reporting agency, including TransUnion, Equifax or Experian.

Why might an individual be considered credit invisible?

If someone is new to the country and has not yet opened a bank account with a credit line, they’re younger and have never had prior experience with credit, or have simply not used credit for any significant period of time for another reason, they might be considered credit invisible.

How many Americans are credit invisible or unscorable?

There are 28 million Americans considered credit invisible and an additional 21 million Americans considered credit unscorable.

How many people in the U.S. have no credit history?

Currently, 45 million Americans do not have a credit history.

What does it mean to be credit unscorable?

Credit unscorable individuals can fall into one of two categories, either they have too few accounts or haven’t provided enough information to obtain a credit score, or they haven’t had any recent credit activity, and their records are considered “stale."

What other factors contribute to credit invisibility or unscorability?

Age, ethnicity and geographical location all factor into credit invisibility and unscorability, with younger, Black Americans in rural areas accounting for the largest percentage of invisibles.

Related Content

There’s more to credit than good, bad, or invisible. Learn more about credit cards, credit scores, and tips for improving your credit in the references below.

A Guide to Credit for Hispanics and Latinos: Hispanic and Latino Americans are among the largest groups of credit invisibles and unscorables. Find tips and strategies to begin building your credit.
Average Credit Card Interest Rates: It can be tough to build credit if you’ve never opened a credit card and don’t know what certain terms like “APR” even mean. Learn more about credit card interest rates, terminology, and the basics of building credit.
Average Credit Score by Age: Youth and senior Americans make up a large percentage of credit invisibles and unscorables. Learn more about the average credit score by age in the U.S. and data demonstrating how credit invisibility and unscorability can be related to age.
Beginning a New Journey in the US: How to Build Credit for Immigrants: Immigrants enter the country with no credit history, which can lead to invisibility and unscorability. Explore ways to build credit as a U.S. resident. This page offers tips for immigrants to begin building credit.
The Practical Guide to Improving Credit Fast: Without a good existing credit score, it can be difficult to build your credit, eventually leading to unscorability. Discover ways to improve your credit quickly and maintain a good score. This page contains tips for how you can improve your credit fast.

About Chris Lacagnina

Chris Lacagnina is a published author and freelance writer with more than 15 years of journalism experience. She has covered many different subjects throughout her career, including just about every type of insurance from the common to the obscure. Her work has appeared in print publications such as AeroSafety World and Frederick Magazine and online on TrustedChoice.com.

Chris holds a bachelor’s degree in print journalism and has a strong passion for learning new subjects. She’s also a published photographer, cat momma and self-proclaimed nerd. When she’s not typing away on her laptop, Chris can be found adventuring in nature, revisiting her favorite retro video games or cuddling her fur babies.

Her published novel is available on Amazon.

sources

The CFPB Office of Research. "Data Point: Credit Invisibles." Accessed November 5, 2024.
Consumer Financial Protection Bureau. "Data Spotlight: Challenges in Rural Banking Access." Accessed November 5, 2024.
OliverWyman. "Financial Inclusion and Access to Credit." Accessed November 5, 2024.

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