As you begin building credit for the first time, it can help to understand what influences your starting credit score Show
October 28, 2021 |4 min read When you check your credit score for the first time, you might be surprised to find a three-digit number, even if you’ve never used credit before. That’s because your credit score doesn’t start at zero. In fact, the lowest possible score from FICO® or VantageScore® is 300. But unless you’ve had some recent trouble with on-time payments or high spending, your score likely won’t be that low. Read on to learn more about where your score starts and why using credit responsibly is important from day one. What Credit Score Do You Start With?Since everyone’s credit journey is different, there’s no one standard score everyone starts out with. You won’t start with a score of zero, though. You simply won’t have a score at all. That’s because your credit scores aren’t calculated until a lender or another entity requests it to determine your creditworthiness. The key, and more important question, is how to use your credit responsibly to help build the best score possible. How Is Your Starting Credit Score Calculated?Once you open a line of credit, there are some factors that will have a direct impact on your scores. Here are a few the Consumer Financial Protection Bureau (CFPB) says can influence your credit score:
At What Age Does Your Credit Score Start?Most people won’t have credit reports or scores before turning 18. You typically have to be at least that age to open a credit card in your own name. If you’ve never used any form of credit before, there’s no way to track your credit usage. And in many cases that means credit reports and scores may not exist. But when you’re eligible to start borrowing on your own, you’ll see credit scores and reports as more lines of credit or loans are opened in your name. In some cases, you’ll also see scores and reports in your name if you’re added as an authorized user to someone’s account. How to Establish and Maintain Good CreditBuilding credit is a process. But that doesn’t mean you’re totally out of luck if you’re just starting to establish credit and considered credit invisible. Here are just a few ways to build credit for the first time:
Your Starting Score Isn’t Your Forever ScoreAs you start your credit journey, remember there are ways to start positive financial habits right away to help you continue building to a better credit score. Consider monitoring your credit to see how your most recently reported balance impacts your scores. CreditWise from Capital One is a free tool that lets you monitor your VantageScore® 3.0 credit score. Using CreditWise to keep an eye on your credit won’t hurt your score. And it’s free for everyone, not just Capital One customers. You can also get free copies of your credit reports from all three major credit bureaus—Equifax®, Experian® and TransUnion®. Call 877-322-8228 or visit AnnualCreditReport.com to learn more. Keep in mind that there may be a limit on how often you can get your reports. You can check the site for more details. Learn more about Capital One’s response to COVID-19 and resources available to customers. For information about COVID-19, head over to the Centers for Disease Control and Prevention. Government and private relief efforts vary by location and may have changed since this article was published. Consult a financial adviser or the relevant government agencies and private lenders for the most current information. We hope you found this helpful. Our content is not intended to provide legal, investment or financial advice or to indicate that a particular Capital One product or service is available or right for you. For specific advice about your unique circumstances, consider talking with a qualified professional. Your CreditWise score is calculated using the TransUnion® VantageScore® 3.0 model, which is one of many credit scoring models. It may not be the same model your lender uses, but it can be one accurate measure of your credit health. The availability of the CreditWise tool depends on our ability to obtain your credit history from TransUnion. Some monitoring and alerts may not be available to you if the information you enter at enrollment does not match the information in your credit file at (or you do not have a file at) one or more consumer reporting agencies. |