What Credit Score Does an 18 Year Old Start With?

Turning 18 is an exciting milestone. You get more freedoms and responsibilities as a young adult. One of these is the chance to start building your credit history. So, if you’re 18 years old and have never had a credit card or loan, you might be wondering what credit score they start with.

The short answer is that most 18 year olds start with no credit score at all That doesn’t mean your score is 0 – it simply doesn’t exist yet Here’s a look at why that is, how credit scores are calculated, and steps you can take to establish and build your credit score starting at age 18.

Why 18 Year Olds Start With No Credit Score

A credit score is a three-digit number that is based on what is in your credit report. Equifax, Experian, and TransUnion are the three main credit bureaus that keep track of people’s credit reports. These reports show all of your credit accounts and how you’ve paid them, not paid them, been collected on, gone bankrupt, and other things.

Credit score models like FICO and VantageScore are used by lenders to look at your credit report and figure out your credit score. When you apply for a loan or credit card, they use your score to figure out how risky it is to give you money.

But if you’re 18 and have never applied for credit, you don’t have a credit report yet. Without any historical information to evaluate, there’s no way to calculate your credit score. You start with what’s called a “clean slate” or “blank credit file.”

How Credit Scores Are Calculated

To understand where you’ll likely fall on the 300 to 850 credit score range when you first establish credit, it helps to know what goes into the calculation

The FICO scoring model looks at five main factors:

• Payment history – Whether you pay your bills on time. This has the greatest impact, accounting for 35% of your FICO score.

• Amounts owed: This shows how much credit you’re using compared to your credit limits. This is also called your credit utilization ratio. This accounts for 30% of your score.

• Length of credit history – How long your credit accounts have been open. This makes up 15% of your score.

• New credit – How many new accounts and inquiries you have. This factors in 10% of your score.

• Credit mix – Whether you have experience with different types of credit like credit cards and loans. This is 10% of your score.

As a new credit user, you won’t have established length, history, or mix yet. But as long as you make payments on time and keep balances low, you can start off with a pretty good credit score.

What Is the Average Credit Score for an 18 Year Old?

According to Experian, the average credit score for an 18 year old is 681. This falls in the good credit range.

Here’s how average scores stack up across different age groups:

• Gen Z (18-25 years old): 681
• Millennials (26-41 years old): 691
• Gen X (42-57 years old): 709
• Baby Boomers (58-76 years old): 746
• Silent Generation (77+ years old): 759

In general, older generations tend to have higher scores because they’ve had more time to build their credit histories.

Does Your Credit Score Start at Zero?

Some people think their credit score starts at 0 or 300. But in reality, scores below 600 are quite rare. Here are some key facts:

• Your score doesn’t automatically start at 0 or 300 when you turn 18. You start with no score.
• The lowest possible FICO score is 300, but it’s uncommon to actually score that low.
• Even if you have bad credit, your score is unlikely to be below 550.
• When just starting out, most people score in the fair to good range (around 600 to 700).

The average 18 year old score of 681 confirms it’s perfectly normal to start with a score in the mid-600s.

How to Check Your Credit Score

Wondering what your personal credit score is? You can easily check it for free.

Your credit card company or bank may provide your score on your monthly statement or online account. You can also get it by signing up for free access through Experian.

Checking your own score doesn’t hurt your credit. As long as you don’t fill out credit applications, you can view your credit score as often as you like. Monitoring it regularly is smart to catch any suspicious activity or errors early.

Steps to Build Your Credit Score at 18

Here are some tips to start establishing credit and building a healthy score as a young adult:

• Get a secured credit card. This requires a refundable deposit and helps beginners build credit responsibly.

• Become an authorized user on someone else’s card. You get the credit building benefits without being responsible for the bills.

• Open a credit builder loan. These require a deposit, which is given back after you make monthly payments on time.

• Use a retail credit card. Store cards tend to have lower requirements than general credit cards.

• Make all payments on time. Payment history has the biggest impact on your score. Set up autopay if it helps.

• Keep balances low. High utilization hurts your score, so keep it below 30% of your limits.

• Limit new accounts. Too many new credit accounts or inquiries can lower your score temporarily.

• Review your credit report annually. Dispute any errors with the credit bureaus to keep your report accurate.

Establishing Credit Early Pays Off

The sooner you start using credit responsibly, the sooner you can build a strong credit history and excellent credit score. Aim to establish at least one credit account by age 18.

With a good credit score, you’ll have a much easier time qualifying for credit cards, loans, apartments, and other needs as a young adult. The habits you build now can put you on solid financial footing for the future.