If you’re new to the world of credit, you might be wondering what credit score you start with. Before we dive into that, let’s take a quick look at what credit reports and credit scores are.
Your credit report is a summary of your credit history. It includes information about your credit accounts, such as your payment history, credit limits, and account balances. This information is used to calculate your credit score.
Your credit score is a three-digit number that ranges from 300 to 850. The higher your credit score, the better your creditworthiness is perceived by lenders. A good credit score can help you qualify for loans and credit cards with better terms and lower interest rates.
What Credit Score do You Start With
So, what credit score do you get assigned first? The answer is, it depends. There are several different credit scores out there, but the two most commonly used are FICO and VantageScore.
FICO scores range from 300 to 850, with a higher score indicating better creditworthiness. The current version of FICO is FICO Score 10, but many lenders still use older versions like FICO Score 8 or even FICO Score 5.
VantageScore, on the other hand, ranges from 300 to 850 as well. The current version of VantageScore is VantageScore 4.0.
So, what’s an average credit score? According to Experian, one of the three major credit reporting agencies, the average FICO Score in the United States is 711. The average VantageScore is 688.
But what about someone who is just starting out and has never had a credit score before? Well, if you have no credit history, you’ll not have a score. However, once you have a limited credit history, you might be assigned a score around the average. I have seen people get a first Fico score as high as 700.
Get started on the right foot, it is easier
So, how can you give a good first impression to credit score companies? Here are some tips:
- Pay your bills on time. Payment history is the most important factor in determining your credit score.
- Keep your credit utilization low. Your credit utilization is the amount of credit you’re using compared to your credit limit. Aim to keep it below 30%.
- Only apply for credit when you need it. Too many credit inquiries can lower your score.
- Monitor your credit report regularly. Make sure there are no errors or fraudulent accounts listed. Go to annualcreditreport.com for this. It is free.
Enter tradelines, a secret
Finally, there’s one more thing you can do to give your credit score a boost in the beginning: become an authorized user on someone else’s credit card. This is called a tradeline, and it can help establish a credit history and improve your score.
Just make sure that the person whose card you’re using has a good payment history and low credit utilization. And remember, being an authorized user doesn’t give you the same rights and responsibilities as a primary cardholder, so be sure to use the card responsibly. If you don’t know of find any good soul to do this for you, you can pay to be added. See the resources below.
Resources
The following is a list of resources to start learning about tradelines. We have a list of tradelines for sale, and a tradelines FAQ. Also various posts about tradelines, and a chart of tradeline prices from competitor sites. Finally, a contact form to ask further questions.
Foreword
Your first credit score will depend on your slim credit history or lack thereof. There are different credit scores out there, but FICO and VantageScore are the most commonly used. To make a good first impression, pay your bills on time, keep your credit utilization low, monitor your credit report, and consider becoming an authorized user on a good credit card.
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