What Credit Score Do You Start With?Have you ever wondered what is the credit score that everyone starts with? This question arises in everyone’s mind. It can be surprising to know that it takes around six months to get a square one only. Credit is not something you are born with. Turning eighteen doesn’t automatically set everything straight. Everyone has to build their credit score from scratch. Everyone is born with zero credit score. For everything great, there is a humble beginning. Everyone starts from nothing. It depends on you what you make out of it.

Zero Credit

Everyone starts with no record at all on their consumer report. To have a credit score, you must have some reasonable data on the consumer report. If there is no data on the consumer report, it means you start with no credit score.

It is a general misconception that as soon as you turn 18, some processes occur automatically that allow you to borrow some money but unfortunately, it doesn’t work like this. The government is not responsible for providing the agencies with the concerned information of people becoming eighteen years of age. Agencies are supposed to gain information from lenders.

Behavior through the course of time, found on the consumer report is analyzed for credit score processing. So, without any data on one’s consumer report, one doesn’t have any credit score at all.

Getting Started

As stated earlier no one has a credit score. In the beginning banks and sources who lend money are hesitant to give you any money. To start the cycle, some lenders do break the chain and become the first organization to give you a loan. When your first account is opened, there is no credit score available until a few months due to the newness of it. After a few months have passed, you get your credit score.

When you first apply for credit, lenders analyze the consumer report. It happens in every case when someone asks for a loan. The agency for consumer reporting conducts a strict inquiry to build the beginning behavioral information of the lender. Then your request is approved by the lender, and after a period of 30 days, you are sent a bill. Even after this process, you are still not assigned your credit score yet. There is not enough history available. After this, if you ask for one more account for borrowing, the lenders do not see a credit score but a message that reads it’s too new to rate.

Getting Your Score

You finally get your first credit score when your first account for borrowing money has reached a history of six months. The process is starting to have a standard which starts with the lowest number and stops at the highest number. There is a median figure, and you are likely to have your first score fall below that median value. It depends upon your payment history.

If six months of payment history is positive, you can get an average credit score. If you have a payment record that is positive but your history is quite brief, and you only have a few accounts, it results in you having a score that is low though you have a positive payment record. To increase the level of confidence, more and different types of accounts can be opened and a dive
rse borrowing history can be established. If the payment history is poor on six months record, you get a very low credit score.

Disease Called Debt

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Jason Butler is an Atlanta native, as well as businessman, blogger and teacher. Not only is Jason a prolific flipper, marketer, writer and side hustler his number of years in higher education and student support have given him expert knowledge in understanding the economics of the student loan industry.


This entry was posted in Credit by Jason Butler. Bookmark the permalink.

Avatar photo About Jason Butler

Jason Butler is an Atlanta native, as well as businessman, blogger and teacher. Not only is Jason a prolific flipper, marketer, writer and side hustler his number of years in higher education and student support have given him expert knowledge in understanding the economics of the student loan industry.

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Here are some simple guidelines for DINKS to build wealth:

1) Collaborate: Meet regularly to talk about money, set goals together, track and monitor them.

2) Understand and respect your partner. Take time to understand your partners values about money.

3) Watch the numbers. Get a budget, monitor your spending and track your net worth.

4) Max your retirement. Maximize contributions to your tax deferred retirement accounts.

5) Invest in stock. Stocks perform better than bonds or cash.

6) Avoid high interest debt. Credit cards and title loans are financial cancer.

7) Diversify. Don't put all your eggs in one basket.

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