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What Is Normal at 19?

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DaveSignal
Valued Contributor

Re: What Is Normal at 19?


@takeshi74 wrote:

@cloudchase wrote:

Recently, I have thought about getting a second credit card some time in the next year. Is this a good idea?


For scoring purpioses it help to have at least 2-3 cards but you have to go with what you can responsibly manage and carefully select cards that will actually be useful to you.


@azguy13 wrote:

As to your question about the student loan, I am not 100% sure. Student loans are the one area I am really not too familiar with. 


For the student loans I'd guess it's DTI and/or loan balance to loan amount but don't take my word on it.  I still have student loans that I'm paying and the impact isn't as much but my DTI is low and my student loan balances are also low.

 


@azguy13 wrote:

I will say this though; no matter if you have a 450 or an 850, there will ALWAYS be something written under things that are hurting your credit score. Honestly, if you do not have any derogs on that account, I would not worry about it.  


Yup.  My TU Fico is 796 and utilization is right around 10%.  Despite that I have "% of balances to credit limits is too high on revolving accounts" listed as a negative factor.  Sometime those messages are helpful.  Sometimes you have to take them with a grain of salt.  Sometimes they're like a performance review where the supervisor just has to find a negative to jot down on the review even if it really isn't all that significant.


I don't know if it would say anything if you had an 850.   I like to think of "this is what is hurting your score" as instead: "this is why your score is not 850".  If you don't have a perfect score, the reasons why not are listed.  You might have 12 years AAoA, but if you only have an 849 FICO, it could be because your average age of accounts is not long enough.

EX:694 TU:744 EQ:777
Amex ED $19.5k - BoA Travel Rewards $15k - CSP $5k - SDFCU EMV $15k - NFCU goRewards $20k - Barclays Arrival $6.5k
Message 21 of 30
wa3more
Established Contributor

Re: What Is Normal at 19?

Most college kids your age are piling up student loan debt and are accumulating credit card debt so you are on right track and asking good questions.

 

I would not be a slave to a FICO score however. Your score will take care of itself . At your age, learning disipline is more important.

 

More importantly, learn to live within your means. Save up some cash in case of emergency. Most people end up in debt due to an unexpected car repair or other expense.

 

I would stay away from opening up any more credit. Learn how to stick to a budget and save. Put some cash away by paying yourself first.

 

 

Message 22 of 30
blondy250
Established Contributor

Re: What Is Normal at 19?


@user5387 wrote:

@cloudchase wrote:

Hello,

I am a college freshman, and I got my first credit card, with no cosigner, in September, 2013. I have always been intrigued by the way the credit world works. I just checked my score, and it says that I'm at 697. I don't know if I should be content because it's slightly below average, or so it says, but I also know that because of my very short credit history, my score won't be sky high.

Recently, I have thought about getting a second credit card some time in the next year. Is this a good idea?


I believe the average FICO score is around 711.

 

However, this number is somewhat meaningless, and it might be better to find the average for people like yourself just starting out.

 

If you search this site, there is frequent mention of "buckets" and "score cards", that are used to classify people into various credit categories, and this might be a useful way of approaching things.

 

It sounds like getting another CC would be a good idea, but be sure to do your homework and research first, and don't make mistakes like applying for a CC when the existing one is maxed out.

 


Average FICO scores differ per age group. someone in the OP's age range 18-24 average would be between 630-640, so 697 if its a real FICO score is excellent for your demographic.

Fico 8 12/9/17
Equifax 850, TransUnion 842 10/30/17 , Experian 842 12/11/17 . AAOA 12 years Oldest 20
No inquires since 2014
All credit reports frozen
Fico 8 Equifax Bankcard 866 12/27/16
Message 23 of 30
DaveSignal
Valued Contributor

Re: What Is Normal at 19?


@blondy250 wrote:

@user5387 wrote:

@cloudchase wrote:

Hello,

I am a college freshman, and I got my first credit card, with no cosigner, in September, 2013. I have always been intrigued by the way the credit world works. I just checked my score, and it says that I'm at 697. I don't know if I should be content because it's slightly below average, or so it says, but I also know that because of my very short credit history, my score won't be sky high.

Recently, I have thought about getting a second credit card some time in the next year. Is this a good idea?


I believe the average FICO score is around 711.

 

However, this number is somewhat meaningless, and it might be better to find the average for people like yourself just starting out.

 

If you search this site, there is frequent mention of "buckets" and "score cards", that are used to classify people into various credit categories, and this might be a useful way of approaching things.

 

It sounds like getting another CC would be a good idea, but be sure to do your homework and research first, and don't make mistakes like applying for a CC when the existing one is maxed out.

 


Average FICO scores differ per age group. someone in the OP's age range 18-24 average would be between 630-640, so 697 if its a real FICO score is excellent for your demographic.


It is possible that people here are confusing the concept of scoring buckets.  The purpose of a scoring bucket is to group people with similar reports (for example: all people with reports that contain baddies) and then readjust the algorithm so that the best individuals in the group still have a fighting chance.

 

Lenders don't look at scoring buckets though.  They look at FICO scores and credit reports.  They don't care about your age (or race or religion).  They care about what is on the reports in addition to the risk score they receive.  

EX:694 TU:744 EQ:777
Amex ED $19.5k - BoA Travel Rewards $15k - CSP $5k - SDFCU EMV $15k - NFCU goRewards $20k - Barclays Arrival $6.5k
Message 24 of 30
cloudchase
Established Member

Re: What Is Normal at 19?


@wa3more wrote:

Most college kids your age are piling up student loan debt and are accumulating credit card debt so you are on right track and asking good questions.

 

I would not be a slave to a FICO score however. Your score will take care of itself . At your age, learning disipline is more important.

 

More importantly, learn to live within your means. Save up some cash in case of emergency. Most people end up in debt due to an unexpected car repair or other expense.

 

I would stay away from opening up any more credit. Learn how to stick to a budget and save. Put some cash away by paying yourself first.

 

 


Yes, I'm aware of this. I keep a spreadsheet of my income, outcome, and all my debts. I also save 40% of my paycheck into my money market account as soon as I get each pay check so I'm not tempted anymore. I don't have much financial burden, other than the student loan and my credit card.

EQ: 700 (5/14) | TU: 733 (5/14)
Message 25 of 30
Rikku
Regular Contributor

Re: What Is Normal at 19?


@cloudchase wrote:

 

My parents never taught me how to manage my money. I also never knew how to handle money since I never had a job (even babysitting jobs) or an allowance. My father lives in a place where credit scores are almost non-existent, and my mother never bothers about financial discussions with me because she assumes I won't have to worry about it until I graduate college. With this realization, when I started my senior year in high school, I talked to a teacher who knows the credit system well because he used to work in economics, business, and finances fields, so he's taught me the basics, and I'm really grateful for that. Though, I'm still worried about my student loans because my credit report says it's hurting my credit score. I'm not supposed to pay off anything until I graduate, but I'm trying to pick up a summer job so I can pay off at least the interest plus 10 or 15% of the loan. Why is this hurting my score even though I don't have to pay until I graduate?


I wouldn't worry about it - that's fairly normal in the early stages of a student loan. I believe it has to do with utilization - and util on installment loans is a very small portion of your credit score, so it's probably not making much of a practical difference. As you probably know, interest starts to accrue on SLs even while you're still in school. If your loan is subsidized, the Dept of Ed is paying the interest that accrues while you're in school - but if the loan is unsubsidized or a private loan, the interest that accrues when you're in school is added to the balance, so you end up with over 100% util on the loan. That is why it's listed as a factor that is hurting your score - but it is such a small factor in your CS that it isn't anything to worry about. 

Message 26 of 30
chalupaman
Super Contributor

Re: What Is Normal at 19?


@Rikku wrote:

@cloudchase wrote:

 

My parents never taught me how to manage my money. I also never knew how to handle money since I never had a job (even babysitting jobs) or an allowance. My father lives in a place where credit scores are almost non-existent, and my mother never bothers about financial discussions with me because she assumes I won't have to worry about it until I graduate college. With this realization, when I started my senior year in high school, I talked to a teacher who knows the credit system well because he used to work in economics, business, and finances fields, so he's taught me the basics, and I'm really grateful for that. Though, I'm still worried about my student loans because my credit report says it's hurting my credit score. I'm not supposed to pay off anything until I graduate, but I'm trying to pick up a summer job so I can pay off at least the interest plus 10 or 15% of the loan. Why is this hurting my score even though I don't have to pay until I graduate?


I wouldn't worry about it - that's fairly normal in the early stages of a student loan. I believe it has to do with utilization - and util on installment loans is a very small portion of your credit score, so it's probably not making much of a practical difference. As you probably know, interest starts to accrue on SLs even while you're still in school. If your loan is subsidized, the Dept of Ed is paying the interest that accrues while you're in school - but if the loan is unsubsidized or a private loan, the interest that accrues when you're in school is added to the balance, so you end up with over 100% util on the loan. That is why it's listed as a factor that is hurting your score - but it is such a small factor in your CS that it isn't anything to worry about. 


I was really concerned about that too. In some of my denials in the past, they've listed something about loan balances on the credit report. Makes much more sense now though I wish I hadn't taken out any unsubsidized loans and cut down on how much I took out this year. Have around 5K in loans total so far. What do you think I should do for the next year so I don't end up with let's say 30K of loans?

Tradelines: Macy’s - $18k, Penfed Power Cash Rewards - $10k, Ethan Allen (TD Bank) - $5.7k, Kay Jewelers - $5.5k, Appliances Connection - $5.3k, Jared - $5.25k, Best Buy (Citi) - $5k, Dell Preferred Account - $3.5k, Samsung - $3.2k, Firestone CFNA - $3.2k, Capital One Platinum - $3k, Mercury MC - $2.25k, Williams Sonoma - $2.1k, Wayfair (Fortiva) - $2k, Amazon Store Card - $1.8k, Apple Card - $1.7k, NFCU cashRewards - $1.5k, CareCredit - $1.5k, B&H Photo - $1.5k, Adorama - $1.25k, Ebay MC - $1k, Sam’s Club MC - $1k, American Eagle - $1k, Ollo MC - $600, Mission Lane Visa - $500, NY & Company - $500, Walgreens - $500, Home Depot - $500, Target RED Card - $500, CapOne Secured MC 0 AF - $500, Penfed Overdraft LOC - $500

Current FICOS: Mid 640s-50s on all reports, Ch 7 BK D/C Aug 2019
Starting scores: EX - 534, EQ - 574, TU - 516 | Total TLs: $91k approx | Total Utilization: 17%, getting this back down
Message 27 of 30
wa3more
Established Contributor

Re: What Is Normal at 19?

CC,

 

keep it up ! many adults should be as concerned with their credit and their ability to even save 5% of income. I know people making 400, 500k and on the verge of bankruptcy due mostly to lack of disipline and misuse of credit.

 

Try using Quicken to manage finances. Excel spreadsheets are good but Quicken is much better.

 

As an accountant for 30+ years who also worked for Morgan Stanley, I have seen a lot of lives ruined by credit cards. My son is 24, no credit card yet, but many of his friends just dont have any savings what so ever. Nothing.

 

What also happens is kids start off with the right intentions. Then apartments, cars and other things take up most of their pay checks. Then they lose their jobs and fall back on credit cards.

 

Just keep it up, you have the right mind set ! Stick to your budget and  stay within your means !

Message 28 of 30
breezy559
Member

Re: What Is Normal at 19?

I'd say you're off to a super good start at 19! Most 19 year olds don't even have a card, and the ones that do, I'd say a lot of them think of it as "free money." 

 

Once you have a good few months of on time payments(and paid in full) your score should be in the 700's.

 

My first credit card was the Capital One Secured Mastercard for $200 where you have to put a $49 deposit down. I'll be honest, it's a pretty crappy card, no perks, high interest; but it's easy to get approved for. I had that one card for about a year and then I started applying for other cards. It's been 1 year and 7 months since I got my first card and now I have a lot of cards with high limits, so al long as you pay on time, pay in full as close as you can, your credit will grow in a little amount of time. 

 

Your score is definitely ahead of the typical 19 year old, good work!

 

I'm pretty new here as well, so you might have to take my advice with a grain of salt, I am far from any sort of expert on credit. Just some advice from one 19 year old to another Smiley Happy

Capital One Platinum Secured: $750 Chase Freedom: $1000 Citi Diamond Preferred: $4300 Best Buy Store Card: $6000 Amazon Store Card: $1200 Amex Blue Cash Everyday: $12,000 Discover IT: $1000 Barclay US Airways Master: $4000 Amex EveryDay: $9000 Chase Sapphire Preferred: $5000
Transunion score: 743 (via Barclays & Discover)
Experian Score: 762 (via amex app)
Message 29 of 30
cloudchase
Established Member

Re: What Is Normal at 19?


@takeshi74 wrote:

@cloudchase wrote:

What Is Normal at 19?

 

Does normal really matter? Do the best that you can for yourself. It sounds like you're off to a good start and this site is a useful resource.

 


@cloudchase wrote:

Recently, I have thought about getting a second credit card some time in the next year. Is this a good idea?


For scoring purposes it helps to have at least 2-3 cards but you have to go with what you can responsibly manage and carefully select cards that will actually be useful to you.

 


@azguy13 wrote:

As to your question about the student loan, I am not 100% sure. Student loans are the one area I am really not too familiar with. 


For the student loans I'd guess it's DTI and/or loan balance to loan amount but don't take my word on it.  I still have student loans that I'm paying and the impact isn't as much but my DTI is low and my student loan balances are also low.

 


@azguy13 wrote:

I will say this though; no matter if you have a 450 or an 850, there will ALWAYS be something written under things that are hurting your credit score. Honestly, if you do not have any derogs on that account, I would not worry about it.  


Yup.  My TU Fico is 796 and utilization is right around 10%.  Despite that I have "% of balances to credit limits is too high on revolving accounts" listed as a negative factor.  Sometime those messages are helpful.  Sometimes you have to take them with a grain of salt.  Sometimes they're like a performance review where the supervisor just has to find a negative to jot down on the review even if it really isn't all that significant.


Thanks, that's really helpful! I'm working on getting my interest and a little bit of my principal off the debt this summer with a part-time job. It won't be much, but at least it's a couple of hundred dollars!

 


@wa3more wrote:

CC,

 

keep it up ! many adults should be as concerned with their credit and their ability to even save 5% of income. I know people making 400, 500k and on the verge of bankruptcy due mostly to lack of disipline and misuse of credit.

 

Try using Quicken to manage finances. Excel spreadsheets are good but Quicken is much better.

 

As an accountant for 30+ years who also worked for Morgan Stanley, I have seen a lot of lives ruined by credit cards. My son is 24, no credit card yet, but many of his friends just dont have any savings what so ever. Nothing.

 

What also happens is kids start off with the right intentions. Then apartments, cars and other things take up most of their pay checks. Then they lose their jobs and fall back on credit cards.

 

Just keep it up, you have the right mind set ! Stick to your budget and  stay within your means !


I would love to use Quicken, but it's $40, and my expenses are just gas, occasional food (once or twice per month), and a few leisure things I do. Maybe once it gets a little more complicated, I'll buy the program!
EQ: 700 (5/14) | TU: 733 (5/14)
Message 30 of 30
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