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What Credit Score Do You Start With?


The most important factor for getting a credit card or credit is your credit score. Nowadays, as the need for credit card or credit increases, credit score has become one of the most curious subjects. So much so that people at an early age began to understand the importance of credit score and wonder how to increase the credit score.  The question that comes to the minds of people who will have credit points for the first time is undoubtedly what is the initial score of the credit grade. It is important to know that everyone starts without credit score.

Which credit score do you start with?

In order for your basic information to be reported, a real credit or credit card on your behalf must be available for 6 months. You do not have credit score until this time is up. Do not assume that your credit score will be 0 based on this information. Because the credit scores of the three leading credit reference agencies start at a certain limit. In general, your credit score will be around 300.

Each of these three main loan reference agencies has its own unique scoring systems. If you look at these scoring systems, you start with 280 credit score for Equifax, 300 credit for Experian and 300 credit for TransUnion. According to 3 credit reference agencies, the credit score ranges determined to have a good credit score are also different for each.  In order to have a good credit score, you must have at least 725 credit score according to Equifax, at least 700 credit score according to TransUnion and at least 661 credit score according to Experian.

After the credit account created in your name is active for 6 months, your first credit score will be based on the reports obtained and generated by each credit reference agency. Since one of the criteria used in calculating the credit score is the length of the account history, your credit score will be slightly interrupted in the first stages. The most important criterion of this information is to see if you pay on time. When you make regular payments for 6 months, your first credit score will be high. However, if your payments fail, they may appear in any credit score range.

How is the your first credit score calculated?

If you know how your credit score is calculated, you can improve your credit score. But there is one more thing you should know beforehand. The types of credit score calculation do not vary solely by credit reference agencies. There are also different types of calculation used to calculate the credit score. The most common is the FICO score. Therefore, factors affecting credit score on FICO score type will be considered. The elements used in calculating your first credit score are as follows;

  • Payment history;

Payment history has the power to influence your credit score by 35% and is therefore the most important factor. You should pay attention to make your payments on time for 6 months. This factor is also the first thing lenders pay attention to because it shows how often you make your payments.

  • Credit usage;

The value of credit usage indicates what percentage of your total loan amount you are using. This rate should not exceed 30%.

  • Length of credit history;

This is the credit score content that will create problems for you in the first place. It will have a negative impact on you when your first credit score is generated and will lower your score. Because the longer the account history, the better it is reflected in the credit score. The effect on credit score is 15%.

  • Credit mix;

This is what you need to do after your first credit score is generated. Creditors want to give credit to people who can handle different types of payments together. The effect on credit score is 10%.

  • New accounts

In order to keep your credit score high, you need to know when you need to apply for a new credit card or loan. Adjusting the time intervals as desired will have a 10% effect on your credit score.

Your first credit report is as important as your first credit score. You can request your credit report free of charge every 12 months through 3 leading credit reference institutions. With this report, you can observe the situations in which your credit score increases and decreases and you can follow the right way to increase your credit score.

What is inadequate credit history you encounter with your first credit score?

Inadequate credit history is simply a lack of credit history to meet the needs of a lender. It is not uncommon to encounter insufficient credit history when creating a new credit score. You can use these ways to get rid of this situation when you create your first credit score;

  • Apply for a credit builder loan
  • Apply for a secured credit card
  • Add an authorized user to your credit card, or become an authorized user on someone else’s account
  • Ask your landlord to report your monthly rent payments.

It takes approximately 8 months to upgrade from a poor credit score to a fair credit score. It takes approximately 14 months to increase from fair credit score to good credit score. It takes approximately 7 months to increase from a good credit score to an excellent credit score. As can be seen from these aforementioned, it is time consuming to increase the credit rating. Your first credit score is therefore very important. The beginning must be good for it to rise over time.

The reason why the credit score is so important is the interest rates that change depending on the credit score. There is an inverse relationship between credit score and interest rates paid. The higher the credit score, the lower the interest rate paid. When your first credit score is encountered, the interest rate set for you will be based on that credit score. If you want to make a big trade, unfortunately your first credit interest rate will be higher than you expect. In such a case, consider adding a co-signer to your application. This allows you to take advantage of the lower interest rate until you improve your first credit score.


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