There isn't a set credit score that each person starts out with. Instead, if you don't have any credit history, you likely don't have a score at all.
The credit history you start with at 18 is a blank slate. Your credit score doesn't exist until you start building credit.
Instead, depending on how well you manage your credit, your first credit score might be around the 500 mark. The age of your oldest form of credit plays a role in your credit score. However, working on other aspects can even get your initial credit score to be around 700.
Depending on the credit reporting agency, your score will be between zero and either 1,000 or 1,200. A higher score means the lender will consider you less risky. This could mean getting a better deal and saving money. A lower score will affect your ability to get a loan or credit.
If you have no credit, you have no score.
That doesn't mean your credit score is zero or even that you have a bad credit score. Without any credit history, you don't fall into any credit range. You're credit invisible.
In a nutshell, you're better off with no credit history at all than a bad credit history and score. That said, both situations have their own challenges that you should be mindful of when attempting to apply for credit.
Unlike credit cards, debit card activity isn't reported to the three credit bureaus (Experian™, Equifax® and TransUnion®) that monitor and provide access to your credit report. When you make a purchase with a debit card, the funds are deducted from your checking account.
Fair credit score (500-649): Late or irregular credit card bill payments and EMI payments can get you stuck in a fair credit score range. While you are still considered a risk by lenders, you are still more likely to get approved for some credit applications.
510-621: Firmly in the average range, people with this score often have to provide additional requirements to be approved. Even with some bad marks in your credit score, your lenders will still look at other credit criteria to determine if home loan approval is possible.
But first, a bit about why you got a zero score. For 85% of people with zero scores, they'll have a default or a bankruptcy on their file. This is the major problem: not paying your bills. Lenders want to know if you're going to pay your bills on time – that's why they check your credit score.
Key takeaways. If you have a limited credit history (or none whatsoever), you have a few options to start building credit, including becoming an authorized user, applying for a secured or store card and using alternative credit-building services.
A credit reporting company generally can report most negative information for seven years. Information about a lawsuit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. Bankruptcies can stay on your report for up to ten years.
Regardless of your age, those who are initially building their credit score can start from 500 to 700, with those in their 20s having an average score of 660.
It's possible to search for a credit history for anyone over the age of 13 using the AnnualCreditReport.com online tool. Federal regulations allow consumers to order one free credit report annually from each of the three credit bureaus (Equifax®, Experian™ and TransUnion®).
Different lenders will have different requirements, and may also factor in other variables. You may be able to get a personal loan with a credit score as low as 580, or even as low as 300 with certain lenders. However, the best loans are typically reserved for people with a credit score of 640 or above.
If you have a credit score that's in the “poor” range—between 300 and 579—finding a loan can be hard.
Making payments on time, keeping credit utilization low and avoiding unnecessary credit inquiries can help you improve your credit scores. Focusing on good credit-building habits, rather than quick fixes, can help improve your credit over time.
The average credit score among Australians is 846 according to credit reporting company Equifax. That means on average Australians have a 'very good' credit score. Women (858) have a higher average credit score than men (836), while the average credit score is higher for older Australians.
Should I Use a Credit Card or Debit Card to Improve My Credit Score? Debit cards and checking accounts do not get reported to the credit bureaus, so using them won't help your credit score.
As long as your account isn't closed, reporting a lost or stolen credit card shouldn't hurt your credit scores. A replacement card should be considered part of the same credit card account as far as your credit reports are concerned.