What Does Your Credit Score Start At? (2024)

FAQs

What Does Your Credit Score Start At? ›

The truth is there's no such thing as a “starting credit score.” Some people wonder whether the starting credit score is zero, for example, or whether we all start with a credit score of 300 (the lowest possible FICO score).

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.

You will not have any credit score at all. FICO will not calculate any credit score unless you have had an active account for at least six months. Once you do have an account, your credit score will likely be in the 600s.

What Is a Good FICO^® Score? The base FICO^® Scores range from 300 to 850, and a good credit score is between 670 and 739 within that range. FICO creates different types of consumer credit scores.

The credit score range is anywhere between 300 to 900. The higher your score, the better your credit rating. Your credit score helps lenders to assess your credit capacity. The higher your score, the more likely you are to get approved for loans and credit.

Instead of starting from the bottom, you'll actually start with no credit score instead — and that's not as bad as you might think. Implementing the behaviors to establish good credit is essential to what credit score you start with, but that's after meeting the criteria to get past the no credit history phase.

The time it takes to raise your credit score from 500 to 700 can vary widely depending on your individual financial situation. On average, it may take anywhere from 12 to 24 months of responsible credit management, including timely payments and reducing debt, to see a significant improvement in your credit score.

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.

The longer you've been using credit, the more it means to your credit score. Members of the 800 Club average just under 22 years of using credit. Even the youngest ones, Millennials, average more than 14 years.

After the first few months of credit activity, most people will start at a credit score of around 500. This is calculated based on your credit behavior for each of the FICO® scoring factors during that six-month period.

How much money can I borrow with a 700 credit score? ›

You can borrow from $1,000 to $100,000 or more with a 700 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.

If you have no credit history at all, then you likely have no credit score. Once you begin to build and improve credit, your score may start at 300 and climb from there.

Home loans

Your credit score might be only one piece of your home mortgage application, but it's among the most critical. With a 705 credit score, you're well above the 620 baseline score needed to qualify for most home loans, but borrowers with a 740 score or higher will typically get a better interest rate.

For most credit-scoring models, including VantageScore 3.0 and FICO, the highest credit score possible is 850. We were able to speak to two Americans who belong to the exclusive FICO 850 Club: Brad Stevens of Austin, Texas, and John Ulzheimer of Atlanta.

A CIBIL Score minus 1 means that you have no credit history whatsoever. It is assigned when there is no previous borrowing history, no credit card in your name, and no track record on which your creditworthiness can be based.

The lowest credit score given by two of the most common credit-scoring models, FICO® and VantageScore®, is 300 and the highest is 850. But this also does not mean everyone starts at this number. In fact, you will only begin your credit journey with a score of 300 if you already have a record of poor financial habits.