what credit score do you start with
image credit: moneywise

When you’re just starting to build credit, what credit score do you start with? You might be wondering what your initial credit score is if you’re a young adult just starting to apply for credit cards, look for an apartment, or get your first car loan. Do you start with the best possible credit score, the worst possible credit score, or somewhere in the middle? It’s possible that the answer will catch you off guard: None of the above is correct, so it’s. In reality, no one has a credit score at all when they first start out. Do you care to know more, well-read further for we cover all you need to know about credit score?

What is a Credit Score?

A credit score is a three-digit figure based on your credit data that summarizes your credit risk. A credit score is used by lenders to evaluate your credit profile and has an impact on the credit you can get, including loan and credit card approvals, interest rates, credit limits, and more. FICO Credit Scores, for example, range from 300 to 850 and are based on your credit history. They can be viewed as a summary of your credit report.


Your credit history is made up of numerous criteria that make up your credit score. Your credit history simply does not exist before it shows in a credit bureau’s file (such as the number of accounts, on-time payments, and so on). You begin to create a credit history whenever you begin to get authorized for credit products such as credit cards and loans.

Until you meet the minimum criteria, you just won’t have a score, and the credit bureaus will communicate this to lenders.

In order to receive a valid FICO Score, the credit report must have:

  • At least one account opened for six months or more, and
  • At least one account that has been reported to the credit bureau within the past six months, and
  • No indication of deceased on the credit report

The minimum scoring criteria may be satisfied by a single account or by multiple accounts on a credit file.

What is Your Starting Credit Score?

We all start with no credit score, which makes sense because our credit scores are dependent on the information in our credit reports, which aren’t generated until we’ve had credit in our names for at least six months. Despite popular belief, your credit record and credit score do not materialize suddenly when you turn 18, especially if you have no credit history.

Depending on your early financial performance, your first credit score could range from below 500 to well into the 700s once you’ve established credit. The age of your credit profile is the only link between your first credit score and the scoring metrics. Given that this element accounts for only around 15% of your total credit score, even if you essentially “failed” this area while performing well in the others, your credit score would still be considerably above 640.

How Your Credit Score Is Calculated

It’s crucial to understand how credit scores work in order to understand why your first credit score is likely to be in the medium range. Five things go into determining your credit score:

#1. Payment history

Whether or not you pay your payments on time is the single most essential element in your credit score. Because your payment history contributes to 35% of your FICO Score, it’s critical to never miss a payment.

#2. Credit utilization

The amount of available revolving credit you’re using is referred to as credit usage. Divide the amount of revolving credit you’re currently utilizing by the total of all your revolving credit limits to get your credit utilization ratio. Maintain a credit usage ratio of less than 30% overall and on each credit account, which you can do by keeping balances low or non-existent. Your credit utilization makes up 30% of your FICO Score.

#3. Length of credit history

The length of time you’ve had credit accounts for 15% of your credit score. This takes into account the average age of all your open accounts as well as the age of each account on your credit report. Credit bureaus have more information about you if you have a longer credit history, which often leads to higher credit ratings.

#4. Credit mix 

You borrow a specified amount and make a fixed monthly payment to pay back the whole amount by a specific date with installment credit, which includes vehicle loans, personal loans, mortgages, and student loans. Revolving credit, on the other hand, allows you to spend up to a predetermined credit limit and either pay off the balance in full each month or carry it over as long as you make a minimum payment. Revolving credit includes credit cards, shop cards, and home equity lines of credit. Your credit score will improve if you can demonstrate that you can responsibly manage several sorts of credit accounts. Your credit mix accounts for 10% of your overall credit score.

#5. New credit

Ten percent of your credit score is determined by the number of new credit accounts you’ve lately created. As well as the number of hard queries on your credit report. When a lender checks your credit report to help them make a decision regarding your application, this is a hard inquiry. Multiple hard inquiries in a short period of time suggest a higher risk and might negatively impact your credit score.

Is 702 a Good Credit Score for a 20-Year-Old?

A credit score of 702 is considered to be an excellent credit score. Scores between 700 and 749 are considered to be in the good range, while scores between 750 and 850 are considered to be excellent. Individuals who have scored in this range are in a strong position to qualify for the best possible mortgages, auto loans, and credit cards, among other financial products and services.

What’s the Average Credit Score to Buy a House?

When applying for a traditional loan, you should aim to have a credit score that is at least 620 points high if possible. If your credit score is below 620, lenders will either not be able to approve your loan or will be required to offer you a higher interest rate, which can result in higher monthly payments. If your score is above 720, lenders will either be able to approve your loan or will offer you a lower interest rate.

Is 770 a Good Credit Score for a 20-Year-Old?

Your result is within the range of scores that are regarded as Very Good, which is from 740 to 799 total points. A credit score of 770 on the FICO® scale is considered to be excellent. Customers falling within this price range may be eligible for lower interest rates from various lenders.

Is Credit Karma Accurate?

The quick response is as follows: The credit scores and reports that are displayed on Credit Karma are procured directly from two of the three major consumer credit agencies, namely TransUnion and Equifax. The credit scores and reports that are displayed to you on Credit Karma should accurately reflect the information about your credit that has been submitted by those bureaus.

How to Check Your Credit Score

If you’re new to credit, check your credit score before applying for more credit cards or loans. You won’t make the mistake of applying for a credit card made for persons with exceptional credit while your credit is still mediocre that way.

What is the best way to check your credit score? Start with free credit scores, which are available from many banks and credit card providers. Credit monitoring services keep track of any dangers to your credit and send weekly reports (like identity theft attempts). Certain popular personal financial apps, such as Mint, can also provide you with your credit score.

Instead of a FICO score, some free credit score providers will give you a VantageScore. Although VantageScore’s rating system differs slightly from FICO’s, the credit ranges are similar. If your VantageScore is good, your FICO score will also be good.

How to Build and Maintain a Good Credit Score

How can you assist preserve or increasing your credit score once you have one? To begin, you must first comprehend what constitutes a good credit score. The FICO Score and VantageScore models both have a range of 300 to 850 points. A score of 670 or above on the FICO scoring model is good. While a score of 800 or more is extraordinary. A VantageScore of 661 or higher is good, while a score of 781 or higher is exceptional.

The better your credit score, the more likely you are to get loans or credit at the best possible rates and terms. It will be more difficult to obtain a credit card and obtain advantageous conditions on a loan. Or even rent an apartment if your credit score is poor.

Whether you want to increase your terrible credit score to the fair range or enhance your credit score from good to superb. There are a number of things you can do right away to establish a credit history and boost your credit score.

What Does Your Credit Score Start at?

It relies entirely on how you begin to use credit. Some people ask whether we all start with a credit score of 300 (the lowest possible FICO score) and work our way up from there, or if we all start with a credit score of zero. The truth is that a “starting credit score” does not exist. Based on how we utilize credit, we each develop our own personal credit score.

You will not have a credit score if you have not yet begun to use credit. After you open your first credit lines, such as a credit card or a student loan, you begin to develop your credit score. The way you use that initial credit account determines your credit score at this stage. You’ll begin to create a credit file as lenders report your credit activity to the three major credit bureaus (Equifax, Experian, and TransUnion). Which will be to generate your initial credit score.

When a lender or landlord does a credit check on you. They get a credit score that reflects how they use their open credit accounts. The most important factors are whether you make timely payments and how much of your available credit you use. You might create good credit before you know it if you use your first credit account appropriately. Your brand-new credit score may deteriorate if you miss payments or use all of your credit cards.

Can you have a credit score without a Card?

Is it feasible to improve your credit score without having a credit card? Yes, however at least one line of credit in your name is still necessary. When you take out a school loan or a vehicle loan. For example, those credit accounts become part of your credit history and contribute to your first credit score. You might also utilize a service like Experian Boost to add telecommunications. Utility payments to your Experian credit report, or you could become an authorized user on a friend’s or relative’s credit card.

What does your credit score look like if you don’t have a credit card? It all depends on how you use your other credit cards. Making on-time student loan payments, for example, is part of the process of establishing a good credit history. Your credit history and credit score might suffer if you routinely make late payments.

What Does Your Credit Score Start at When You Turn 18?

Because there is no information in your credit report on which to establish a credit score when you turn 18, you do not have a credit score when you turn 18. However, once you reach the age of 18, you are to open credit cards and take out loans. When you get a credit card or take out a loan and start making payments on it. The banks will report the status of your account to the three major credit reporting bureaus, and you will receive a credit score. The agencies will then assign you a score between 300 and 850.

You’ll have a credit score in the 700s in as little as a few months if you make timely payments on your credit card or loan. So don’t believe the fallacies that your credit score begins at 0 or that it begins at 300. Even individuals with unfavorable information on their credit reports will not make it into the 300s. So you can rest assured that if you make on-time loan or credit card payments. You’ll have a good credit score within a few months.

You have a clean credit file when you’re 18. So get a credit card and spend just what you can afford to pay off at the end of the month. This will help you build good credit so that when the time comes to get a credit card or make a significant purchase. You’ll have a good credit score and be eligible for the best conditions. As a result, spend wisely and plan for the future.

What Age is 800 Credit Score?

If you’ve been paying your bills on time and have kept your accounts open for a longer period of time, you’ll have a better chance of building a positive credit history as you get older. For those who have scores of 800 or higher, the average age of their oldest active account is more than 27 years.

Does Everyone start Off With Good Credit?

There is no one standard score that everyone begins with because the process of establishing credit is unique for each individual. However, you won’t begin with a score of zero because that won’t happen. You will end up with absolutely no score at all. This is due to the fact that your credit ratings won’t be determined until a lender or any other institution requests them in order to evaluate your creditworthiness.

How Many Points Can Your Credit Score Go Up in 6 Months?

There is still hope for you even if your credit score is “under construction.” You can raise your score rather rapidly, and you might even see an improvement in as little as a month’s time. It is entirely conceivable, in point of fact, to enhance your score by one hundred points or more within around six months with the application of focused effort.


I don’t advocate going after high scores, but 700 is a good target to shoot for. There are several fresh solutions on the market that could help you get closer to your goal faster while also avoiding the need to take on more debt.

Experian Boost uses your checking account to reflect on your positive payment history for things like cell phone and energy bills. UltraFICO is another tool that uses your banking information to highlight your money management skills and improve your score. It is now in its pilot phase. These goods will only have an impact on your Experian credit score. But for individuals who are new to credit, they may be just what you need.


How long does it take to get a 700 credit score?

It will take about six months of credit activity to establish enough history for a FICO credit score, which is used in 90% of lending decisions. 1 FICO credit scores range from 300 to 850, and a score of over 700 is considered a good credit score. Scores over 800 are considered excellent.

Can you pass a credit check with no credit history?

Because you have no credit to base a lending decision on, you may not be able to qualify for traditional credit on your own at first. Some options for building your credit history include: Ask someone to cosign.

How much can credit score increase monthly?

For most people, increasing a credit score by 100 points in a month isn’t going to happen. But if you pay your bills on time, eliminate your consumer debt, don’t run large balances on your cards and maintain a mix of both consumer and secured borrowing, an increase in your credit could happen within months.

  1. BUSINESS CREDIT SCORE: How to Check Your Business Credit Score
  2. FREE CREDIT SCORE: How to Check My Free Credit Score (+Best Free Credit Score Sources)
  3. Fast Business Loans: The Top Best 2021 UK Options & How-To Guide
  4. BAD CREDIT: Definitions, Examples & Penalties
Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like