Credit score Q&A: “What credit score do you start with?”
Questions related to credit scores are always difficult to answer because companies like Fico don’t reveal all their scoring algorithms.
Credit scores also happen to be very unique from consumer to consumer.
It’s worth noting that you won’t even have a credit score unless you’ve got enough information on your credit report.
By enough information, I mean at least one credit account that has been open for six months or longer.
And that account must have been reported to the credit bureaus within the past six months.
Without that, you probably won’t even have a credit score.
So assuming you do have the bare minimum, your credit score will be determined by the open account(s).
If your one account is in good standing, meaning you’ve made payments regularly and kept the balance low (credit utilization), you should have a good credit score.
After all, without any negative information, there’s no reason you should have a bad credit score.
However, it’s hard to say whether it’ll be above 800 or just above 700 – that will depend on a number of different factors, some that Fico and the other credit score creators don’t really make clear.
Credit Scores Means Little without Credit History
Keep in mind that without much credit history, a credit score means very little.
In other words, that three-digit score needs to prove itself before credit card issuers and lenders give you any, ahem, credit.
For example, mortgage lenders typically require three open credit lines with two years of history on each.
Without them, even your excellent credit score may be useless.
In conclusion, don’t concern yourself with the credit score you start with – focus on it long term, and make sure you take the right measures to keep it high, like making on-time payments, keeping balances low, and applying for credit sparingly.
Tip: How to raise your credit score.