What Credit Score Do You Start With?
You don’t start with a credit score at all. Your score doesn’t exist until you open your first credit account and enough of a payment history is reported. Once you do, your score won’t start at zero, and it won’t start at the lowest FICO score of 300. How high it lands depends on how responsibly you manage your credit.
When do you get your first credit score?
Getting your first credit score depends on the scoring model. With FICO, you’ll typically need at least six months of credit history and activity reported to at least one of the three major credit bureaus — Experian, Equifax and TransUnion. With VantageScore, you can get a score much faster, sometimes within a month of opening your first account.
One account can only get you so far, though. Fewer than five open accounts is considered a thin credit file, meaning scoring models don’t have much data to work with. Your score becomes more stable and accurate as you add accounts and build a longer track record.
A credit score is a three-digit number that tells lenders how likely you are to repay debt. Scores range from 300 to 850. The higher your score, the better your odds of getting approved for credit cards, loans and mortgages, and the lower your interest rates will be.
How is your credit score calculated?
According to FICO, these are the five key factors that determine your FICO score:
- Payment history (35%): Late or missed payments that are 30 or more days past due damage your credit. Meanwhile, a history of making payments on time is essential to good credit.
- Amount of debt (30%): Using a small amount of your available credit and paying off your balance every month will improve your credit. Your credit utilization ratio, or how much credit you use compared to how much you have access to, should stay below 30% for the best results.
- Length of credit history (15%): Having credit for a long time boosts your credit score, since you’ve established a history that lenders can rely on. This is why experts often recommend keeping old credit card accounts open.
- New credit (10%): Applying for several credit cards or loans in a short period of time is a red flag. Each application will result in a hard inquiry and a small dip in your credit score, but credit scoring models do make exceptions for rate shopping.
- Credit mix (10%): Having a mix of different kinds of credit — like personal or car loans, credit cards and a mortgage — demonstrates responsible management across account types.
Check out LendingTree’s full guide to how your credit score is calculated.
How to get a credit score
If you haven’t opened a credit card or taken out a loan, you don’t have a credit score — this is called being credit invisible. To get one, you’ll need to do things like open some form of credit — like a credit card, car loan or student loan — or become an authorized user on a credit card.
The good news is that no credit is better than bad credit, since you’re starting with a clean slate.
You can check your credit score for free with LendingTree. Checking your own credit won’t damage your score. Contrary to popular belief, it only counts as a soft inquiry.
How to build credit with no credit
Building credit from scratch means responsibly managing your credit and making on-time payments. Here are the most common ways to get started.Take out a loan
Credit-builder loans are designed specifically for people with no credit history. The lender holds the funds in a savings account while you make payments, then releases the money to you at the end of the term. Make sure the lender reports to at least one or two of the three credit bureaus to get the full benefit.
If you need money for an expense, a secured loan is another option. Lenders are more willing to approve borrowers with no credit history because the loan is backed by collateral.
If a family member, friend or other trusted person with good credit is willing to cosign your loan, your odds of approval improve significantly.
Become an authorized user
One of the easiest ways to build credit without opening your own account is to become an authorized user on a family member’s or friend’s credit card. Choose someone with good credit who pays their bill on time.
If the credit card company reports authorized users to the credit bureaus, their payment history will show up on your credit report and can boost your score, even if you never use the card.
Keep in mind that if the primary cardholder carries a high balance or misses payments, it could negatively affect your score as well.
Get a credit card
You can qualify for a credit card even without a credit score. A few options work well for first-time borrowers:
- Secured credit cards: Require a refundable deposit that typically becomes your credit limit. After several months of on-time payments, you may be able to upgrade to a regular card.
- Student credit cards: Designed for young adults, often with cash back rewards and credit-building tools.
- Store credit cards: Easier to qualify for but often carry high interest rates.
Frequently asked questions
A good FICO score starts at 670. Scores from 670 to 739 are considered good, 740 to 799 very good, and 800 and above excellent. For VantageScore, good starts at 661.
Getting your first FICO score takes six months, but reaching a good score of 670 or above typically takes 12 to 18 months of responsible credit use. Making on-time payments and keeping your credit utilization below 30% are the two fastest ways to get there.
Learn more about how to improve your credit score fast.
Yes. Some lenders specialize in loans for borrowers with no credit history. Your options will be more limited and interest rates higher than for borrowers with established credit, but credit-builder loans and secured loans are designed specifically for this situation. Having a cosigner with good credit can also improve your odds significantly.
Learn more about what credit score is needed for a personal loan.
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