In this article, we’re going to answer “What credit score do you start with?” That said, the short answer is “it depends”.
However, we’ll share some of the nuances and common strategies that can be used whether you’re just getting started with building credit or trying to rebuild your credit score.
This article is part of our free series on US banking and credit essentials, ranging from how to get a credit card with an ITIN number to answering questions about credit scores.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- What Credit Score Do You Start With?
- How to Build Your Credit Score?
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
What Credit Score Do You Start With?
What credit score you start with will depend on several factors, including which strategies you use to build credit, how soon after starting to build credit you check, and which additional resources you have available to you. For example, secured credit cards and being added as authorized user are two effective ways to build credit quickly within six months to a year.
Before diving in any further, if this is your first time visiting GlobalBanks, don’t forget to download your FREE US Banking Starter Guide. It’s designed to help non-residents with opening bank accounts at top financial institutions in the US.
What Credit Score Does an 18-Year-Old Start With?
The credit score an 18-year-old will start with is essentially 0, this is because 18-year-olds do not have any credit history to track and therefore no credit score can be issued. However, there are ways for 18-year-olds to quickly build a positive credit score, which we discuss below.
It’s important to note that when using a credit card, credit cards do have pins that are required for certain transactions, which you can learn more about by accessing our free guide, linked here.
How to Build Your Credit Score With Credit Bureaus
To build your credit score with credit bureaus, you will need to understand how your credit score is impacted. In short, the main things that impact your credit score are repayments, total utilization, and actually using credit.
In other words, if you want to build your credit score with credit bureaus, you need to use credit that will then be reported to the credit bureaus. Additionally, you need to ensure that your repayments are always on time. And, according to most experts, you should ensure that you maintain a credit utilization score of less than 30%.
For your reference, credit utilization refers to the amount of credit you use relative to the amount available to you. For example, if you have a credit limit of 10,000 you should maintain an outstanding balance of less than 3,000 (30%).
Bad Credit Score vs Good Credit Score
The main difference between a bad credit score and a good credit score is the lenders that will be open to offering you credit. In most cases, an individual with a bad credit score will have very limited options in terms of mortgages, personal loans, and even credit cards. On the other hand, an individual with a good credit score will be able to access mortgages from a wide range of lenders at standard market rates.
Good Credit Score vs Excellent Credit Score
The main difference between a good credit score and an excellent credit score is the interest rates that will be available to you as a borrower. This is because good credit scores will still provide access to competitive interest rates. However, once an individual obtains an excellent credit score (or even a very good credit score), they will start to unlock the best interest rates available on the market.
Frequently Asked Questions
Below are four of the most common questions we receive from people looking into what credit score you start with. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
Is a Credit Score of 720 Good?
Yes, a credit score of 720 is considered good. In fact, a credit score of 720 will provide access to a wide range of credit products and loans as well as competitive interest rates available. That said, if you want to access the best rates available, you typically need to have a credit score above 750 or 760, depending on which credit experts you ask.
How Can I Quickly Raise My Credit Score?
How you can quickly raise your credit score will depend on how many possible strategies you have available to you. In most cases, you will want to focus on paying down credit cards and other unsecured debt (which report monthly), reduce your credit utilization score (which impacts your score overall), and if possible get added to a credit card from another individual with a higher credit score than you.
What Credit Score Do You Start With at 20?
The credit score you start with at 20 is usually between 500 and 700. However, it is possible to increase your credit score quickly at this age if you immediately demonstrate good credit behavior. This includes not increasing your credit utilization above 30%. Additionally, you will want to use other strategies such as being added as an authorized user to the card of a family member (like a parent or guardian) in order to maximize your credit score.
How Long Does It Take to Get a Credit Score of 700?
How long it takes to get a credit score of 700 will depend on your current credit score, your credit utilization, your repayment history, and the amount of debt that you have available to you. In certain cases, it may be possible to raise your credit score to 700 after only a few months. However, if you are starting from a lower credit score, it could take up to one to two years. With this in mind, the best way to improve your credit score is to reduce your credit utilization and manage your credit usage responsibly.
Ready to Open Accounts With Banks in the USA?
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In fact, GlobalBanks USA even helps non-resident US LLCs and foreign & offshore entities.
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