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Because the most popular credit scoring models start at 300, your starting credit score will likely be at least 300. However, practicing healthy credit habits like making payments on time and keeping your utilization rate low can help build your starting score to around 500.
Credit scores aren’t magical three-digit numbers that materialize as soon as you start using a credit card. The reality is that it takes between three to six months of account activity, such as from a student loan or credit card payments, for you to build up enough credit information to comprise your first credit score.
The lowest credit score calculated by most credit bureaus is 300. However, if you’re diligent about payments within your first six months, your first credit score will likely be much higher than the minimum. After the first few months of building credit, most people will have a “starting” credit score between 500 and 700.
Below, we dive into how your starting score is calculated and offer tips for how to start off your credit journey on the right foot.
What is your starting credit score?
After the first few months of credit activity, most people will start at a credit score of around 500. This is calculated based on your credit behavior for each of the FICO® scoring factors during that six-month period. If you opened just one line of credit and have been paying it on time each month, you will likely have a decent starting credit score.
It’s important to note that credit scores may differ depending on each person’s unique financial situation. Even if you pay your bills on time every month, you may have a lower starting credit score than a peer who, say, has less student loan debt than you do.
Contrary to popular belief, credit scores do not start at 0. Zero is actually lower than any credit scoring model will go.
The lowest starting credit score for both FICO and VantageScore is 300. However, it’s unlikely that your starting score will be as low as 300 if you manage your credit accounts well by paying on time and keeping your credit utilization rate low.
Credit scores are calculated using information from your credit reports. This information is summarized into a three-digit score that lenders can use to determine your financial trustworthiness.
In the U.S., most credit scores are created by FICO or VantageScore Solutions. While both scoring methods include a score range, the two methods weigh certain credit factors a bit differently.
FICO Scores range from 300 to 850 and are compiled from five main data points:
VantageScore credit scores also range from 300 to 850. This scoring method is determined by the following six data points:
How to check your score for the first time
You can check your score by purchasing it directly from FICO or VantageScore, working with certain services (like credit repair companies, credit card lenders, or some banks) or visiting a free credit scoring website.
Additionally, you can request a free copy of your credit report from each of the three major credit bureaus (Equifax®, TransUnion® and Experian®) at AnnualCreditReport.com or by calling toll-free 1-877-322-8228.
Once you receive your scores and reports, read over the information carefully. You’ll want to look out for inaccurate and inconsistent information. If you do spot any errors, dispute the inaccuracy with the bureau within 30 days of receiving your report.
Once you’ve pulled your free credit report and know what your score is, here’s what you can learn about your current financial information:
For most credit cards and loans, you must be 18 or older to open an account. You must first establish a credit history before you’re given a credit score, meaning that just because you turn 18 or open a credit card doesn’t mean you’ll automatically have a credit score awaiting you.
Instead, you must establish credit by having an account in your name and make subsequent payments in order to build up enough credit information to result in a score.
If you’re just starting out on your credit journey, here are a few options to help you build up your credit score.
The good news is that improving your credit score and building credit is fairly simple, and you can see significant improvements in under a year. Here are a few ways you can establish healthy credit habits and improve your credit score:
Starting your journey in the credit world can be complex, but you have people around to help you — like our team at CreditRepair.com. Take a look at our credit education services to learn more about how you can increase your starting credit, and visit our credit fix solutions for expert help.
Note: The information provided on CreditRepair.com does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only.
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