Building a Credit Score?

Question

According to Experian, my VantageScore is 653. I am only 18 years old with a cell phone and few credit cards under my name which I use and then pay all or most of the balances off each month. According to my credit report I have 5 accounts in good standing at the moment, one or two of them are just older accounts with my mom on them.

So, is this a normal score for an 18 year old with very little credit history? I am not 100% sure how credit scores work, so I wasn't sure if you start at the top and your score falls from there or if you start with a low score and have to build your way up.

Thanks.

Answer 1

While 653 is a good Vantage Score for someone your age, you need to be aware that this score will probably never be used on anything you apply for credit. Your FICO score will be.

That being said, you are doing everything right to build a solid credit history, and you will be thankful for that in about 5-10 years when you are trying to build wealth, buy a home, etc.

Answer 2

That's really good for your age, keep doing what your doing and by the time your a little older and want something then you will have no problem getting it. I'm not really sure where it starts but I know that not even alot of 30year olds have a score that good so don't let it go.

Answer 3

Ya that's actually a pretty decent score for an 18 year old.

I'm so glad that at your young age you are inquisitive and interested enough to enquire about credit --- it really warms my heart :)

Anywhoooo...no you don't start at the top...you just start and hope that you land somewhere safe.

What you need to do is keep your debt to income ratio at a minimum. So don't use more than 25% of your credit limit at a time, even if you're paying it off in full...which is still very good. The more you charge , the more it appears that you're dependant on credit. Keep the old accounts on your report...account history accounts for 30% of your credit report...that's a good thing.

Make sure you're diligent in keep all your accounts current and balances paid. Don't overuse use your credit and DO NOT close any accounts. In a year or 2 you'll be a proud member of the 700+ FICO score club.

Good luck and keep up the good work.