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Regular Contributor
MMart078
Posts: 125
Registered: ‎08-08-2009
0

18 Year Old and Credit Cards

I am 18 years old and I have 4,550  in available credit. I am guessing this is pretty decent, but I won't your opinion. I have had credit since August, not long enough to have FICO's but I have FAKO's (I know I know) of 721,736 & 728. I would like an American Express, but I was declined because I have no FICO. Well questions are is this enough credit for my page with an income of 67k and how much should I expect to have in about 2 years?

 

I do not intend to use all of the lines, but I put everything on the card and pay it off at the end of the month and I notice when my balance reports my FAKOS dip. I would just like  enough available credit so that I will not have to pay the card before the statement date.

 

Any thoughs?

Regular Contributor
mgs2010
Posts: 185
Registered: ‎07-26-2009
0

Re: 18 Year Old and Credit Cards

Well first off...you have a very good start for being 18. And congrats on being so young and wanting to stay on top of things---this will help you more than you think as long as you keep your credit in good standings. you have plenty of credit right now, you will not get anything else for awhile. I was in the same situation just 4 years ago and what i'll say is DO NOT APPLY FOR ANYMORE CREDIT for at least a year. You don't need it, nor will you get approved for it. Keep what you have and BUILD on it. your credit limits will increase depending on what cards you have. What cards are you currently carrying? When I was 18 I had Capital One, Discover, and Chase....all of which have very large limits today (4 years later more than 10x the credit limits i started with). So its hard to say exactly what you will have 2 years from now, just focus on keeping everything in perfect shape until then...this will maximize your liklihood of getting cli's. Also, 67k is a pretty impressive income especially for an 18 year old....What do you do for a living if you don't mind me asking? Lastly, don't apply for amex for quite some time...wait until you're at least 20. I tried getting an amex between 18-19 and it did not happen even though everything looked good on my record. Last year I was finally approved for one. I dont think they like short, unestablished credit histories.

 

Good Luck!

Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008
0

Re: 18 Year Old and Credit Cards

[ Edited ]

Unless you have NO reported credit on your reports, then you do have a FICO score.  Did you attempt to purchase your scores on this site?  If you have no FICO, then you have no reported credit data meaning your $4550 in available credit is either failing to report, or not reporting to the correct identity.

 

My kids at your same age, with nothing but a single account as authorized user had FICO scores.

 

 

 

 

Message Edited by txjohn on 12-05-2009 11:35 PM

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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Regular Contributor
MMart078
Posts: 125
Registered: ‎08-08-2009
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Re: 18 Year Old and Credit Cards

To Mgs2010, they cards of NFCU 1k, Citi 1.8k, CFCU 1k, USAA 500 & ODUCU 250, I am a real estate agen, and a financial & research consultant.I am also a junior in college (finance major)...I am a junior due to advanced placement and dual enrollment. (That question always comes up)

 

And to the other I think you are forgetting that fico does no longer count authorized user the way they used too. I am sure you are aware of the no piggyback if not (look it up!) and the requierments for have a fico score

 

There's really not much to it; in order for a FICO® score to be calculated, a credit report must contain these minimum requirements:

  • At least one account that has been open for six months or more (5 MONTHS FROM ME, AUG TO DEC)
  • At least one undisputed account that has been reported to the credit bureau with in the past six months(SAME ISSUE)
  • No indication of deceased on the credit report (Please note: if you share an account with another person this may affect you if the other account holder is reported deceased). AND IM ALIVE AND WELL

here is the link: http://www.myfico.com/CreditEducation/questions/requirement-for-fico-score.aspx

 

EVERYONE PLEASE!: BEFORE REPLYING TO MY FORUM, KNOW WHAT YOU ARE TALKING ABOUT THIS IS WHY SO MANY PEOPLE WOULD RATHER NOT BOTHER WITH CREDIT, PEOPLE ALWAYS CONFUSING EVERYONE ELSE.

 

(exhale)...I HAD TO VENT

Regular Contributor
honeybunnygal
Posts: 162
Registered: ‎03-30-2008
0

Re: 18 Year Old and Credit Cards

[ Edited ]

txjohn wrote:

Unless you have NO reported credit on your reports, then you do have a FICO score.  Did you attempt to purchase your scores on this site?  If you have no FICO, then you have no reported credit data meaning your $4550 in available credit is either failing to report, or not reporting to the correct identity.

 

My kids at your same age, with nothing but a single account as authorized user had FICO scores.

 

 

 

 

Message Edited by txjohn on 12-05-2009 11:35 PM

 

Hmmm...I thought there had to be six months of credit history reported for a FICO score to be generated. OP stated he's only had credit since August, so he hasn't hit the six month mark yet.

 

If the account your kids were added on as AUs had a history longer than six months, that would be the reason why they had scores.

 

Found this thread on the forums about generating a FICO score:

 

http://ficoforums.myfico.com/fico/board/message?board.id=myficoprod&message.id=4673&query.id=76828#M...

 

:smileyhappy:

 

ETA: There was discussion back in 2008 about revising the scoring formula to not include AU accounts. However the decision was made to NOT remove AU accounts from scoring.

 

http://myfico.custhelp.com/cgi-bin/myfico.cfg/php/enduser/std_adp.php?p_faqid=71

 

Message Edited by honeybunnygal on 12-06-2009 08:29 AM
Hard work & patience can go a long way!
8/2009 (myFICO): TU - 599, EQ - 656
7/23/2010 (LO pull): TU - 738, EQ - 801, EX - 785
4/12/2012 (myFICO): TU -778, EQ - 791
Valued Contributor
Jazzzy
Posts: 2,679
Registered: ‎07-29-2009
0

Re: 18 Year Old and Credit Cards


MMart078 wrote:

To Mgs2010, they cards of NFCU 1k, Citi 1.8k, CFCU 1k, USAA 500 & ODUCU 250, I am a real estate agen, and a financial & research consultant.I am also a junior in college (finance major)...I am a junior due to advanced placement and dual enrollment. (That question always comes up)

 

And to the other I think you are forgetting that fico does no longer count authorized user the way they used too. I am sure you are aware of the no piggyback if not (look it up!) and the requierments for have a fico score

 

There's really not much to it; in order for a FICO® score to be calculated, a credit report must contain these minimum requirements:

  • At least one account that has been open for six months or more (5 MONTHS FROM ME, AUG TO DEC)
  • At least one undisputed account that has been reported to the credit bureau with in the past six months(SAME ISSUE)
  • No indication of deceased on the credit report (Please note: if you share an account with another person this may affect you if the other account holder is reported deceased). AND IM ALIVE AND WELL

here is the link: http://www.myfico.com/CreditEducation/questions/requirement-for-fico-score.aspx

 

EVERYONE PLEASE!: BEFORE REPLYING TO MY FORUM, KNOW WHAT YOU ARE TALKING ABOUT THIS IS WHY SO MANY PEOPLE WOULD RATHER NOT BOTHER WITH CREDIT, PEOPLE ALWAYS CONFUSING EVERYONE ELSE.

 

(exhale)...I HAD TO VENT


Hi...you may want to do some research on that. You may have confused some people with that comment.

Moderator Emeritus
MarineVietVet
Posts: 14,136
Registered: ‎07-14-2009
0

Re: 18 Year Old and Credit Cards


MMart078 wrote:

 

And to the other I think you are forgetting that fico does no longer count authorized user the way they used too. I am sure you are aware of the no piggyback if not (look it up!) and the requierments for have a fico score

 



I'm not sure what you mean by this. If you mean that AU's are not allowed at all anymore then you are incorrect. I added my son as an AU to 4 of my cards just a few months ago and he is listed by all the CRA's as an "authorized user" He inherited the entire history of all my accounts.

 

 

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
0

Re: 18 Year Old and Credit Cards

This thread is already mired with misinformation.

You need an account age of six months before the FICO algorithms will generate a score for you. However, you can (obviously) obtain credit before FICO will generate a score for you.

 

Even under FICO08 (which as of yet no credit issuer is using for other that evaluation studies) AU's will generally count. FICO claims that certain fringe AU's will no longer be counted and that they have a secret special method for determining which AU's should be out. Since you can't obtain a FICO08 based report anywhere and no one uses FICO08 it is impossible to determine the veracity of this claim.

Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
0

Re: 18 Year Old and Credit Cards


MMart078 wrote:

To Mgs2010, they cards of NFCU 1k, Citi 1.8k, CFCU 1k, USAA 500 & ODUCU 250, I am a real estate agen, and a financial & research consultant.I am also a junior in college (finance major)...I am a junior due to advanced placement and dual enrollment. (That question always comes up)

 

And to the other I think you are forgetting that fico does no longer count authorized user the way they used too. I am sure you are aware of the no piggyback if not (look it up!) and the requierments for have a fico score

 

There's really not much to it; in order for a FICO® score to be calculated, a credit report must contain these minimum requirements:

  • At least one account that has been open for six months or more (5 MONTHS FROM ME, AUG TO DEC)
  • At least one undisputed account that has been reported to the credit bureau with in the past six months(SAME ISSUE)
  • No indication of deceased on the credit report (Please note: if you share an account with another person this may affect you if the other account holder is reported deceased). AND IM ALIVE AND WELL

here is the link: http://www.myfico.com/CreditEducation/questions/requirement-for-fico-score.aspx

 

EVERYONE PLEASE!: BEFORE REPLYING TO MY FORUM, KNOW WHAT YOU ARE TALKING ABOUT THIS IS WHY SO MANY PEOPLE WOULD RATHER NOT BOTHER WITH CREDIT, PEOPLE ALWAYS CONFUSING EVERYONE ELSE.

 

(exhale)...I HAD TO VENT



Congrats on the advanced placement! The last year of high school is often a waste of time for some students.

As to the highlighted statement above, you are incorrect. FICO 08 was originally going to do this, but backed off, probably due to potential violations of the FCRA. (look it up!) There's a lot of obsolete and incorrect info on the internet, as I'm sure you are well aware.

You're right, since you seem to have no AU cards (older than 6 months), you won't have a score until you do hit 6 months.

How much what should you expect to have in two years? (this question from your first post) Total credit limit? If it's total CL, no telling. Banks have pulled back available credit big time over the last 18 months. I have always shot for (and not always hit) a minimum of $1K on a store card, $5K on a bank card, and $10K on a CU card, but those are pretty much numbers pulled out of a hat.

If you want to be an early FICO High Achiever, I'd advise keeping your total card count to 5, with at least one from a major national bank, and possibly one a store-only card (the jury's still out on this.) With banks being stingier, you're more apt to get good CLI's with fewer cards, because otherwise, it's too easy for an individual bank to evaluate your record and decide that you don't need any additional credit. The classic High Achievers only have about 5 cards going, and they tend to be all excellent cards, chosen carefully for rewards, growth potential, and so forth.

Meanwhile, as sort of a general observation, many of us enjoy having college-age members join the forums. I for one appreciate the energy and excitement. But don't be so quick to assume that you know what's what about everything. Credit is pretty tricky, and often contradictory. At a minimum, you might want to check the number of posts next to someone's name before blowing off their advice. We do have some high-volume posters who live in confusion, but most give valuable advice. :smileyhappy:
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Regular Contributor
MMart078
Posts: 125
Registered: ‎08-08-2009
0

Re: 18 Year Old and Credit Cards

[ Edited ]

The piggybacking thing can not be correct as your stating it, I see that you are a moderator and I understand that reponsibilty. I am the authorized user on a Discover and Visa, and haven been since July 2007, I still have no credit score. Thus I have drawn the conclusion that the piggybacking is not calculated in the credit score. No to your fallacy, you must agree that the number of post has no correlation of the accuracy of their information. To say that you would have to agree that someone who talks more than another is more correct. I thank you for your credit on my advanced placement and dual enrollment. Howver, right is right and wrong is wrong. All respect given.

 

After talking to a MyFICO representative and my own experience, I have arrived at the conclusion that, having an authorized user on your account, is included in your fico score if you have credit in your own name. However, it can not establish a score for you, but impact if you do have one. (one of those contradictories)--- thatg haulingupthescore was talking about. I feel apologizes are in order from me, as I was partially correct. However, others where partially wrong.

Message Edited by MMart078 on 12-06-2009 02:16 PM

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