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Help - When will I have an actual credit score starting from no credit?!

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Anonymous
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Help - When will I have an actual credit score starting from no credit?!

Hello!

 

I am very confused with everything involving credit, I feel like i ask everyone questions and am constantly getting different responses. I just graduated college last May and did not open my first credit card until this past November. Unfortunately I only recieved a $300 limit despite living at home and having a job with a 50k salary. I pay this off in full every 2 weeks since I rack it up so quickly with such a low limit. 

 

To help build my credit quicker I went ahead and leased a car at the end of January. I now have a loan with Ally financial and pay that off on time every month as well (of course have only had 2 payments so far though). 

 

I am just wondering if anyone knows when I would finally have a physical credit score? I am trying to move out but neither of my parents will co sign and despite having plenty of money to move, I will not be able to apply for an apartment without doing a credit check. Also, if anyone has any advice please send it on over!!


Thank you! 

4 REPLIES 4
Anonymous
Not applicable

Re: Help - When will I have an actual credit score starting from no credit?!

Assuming whatever credit card you got reports to a credit bureau, you already have a credit report and score. It might not be high, but it exists. However, it is important to remember that until your oldest line of credit hits 6-months old, many creditors will not even consider you for a line of credit (as you are considered very risky due to having nearly no credit history). You can get an annual free credit report from annualcreditreport.com or purchase a package from a site like myFICO (I personally subscribe to the FICO Ultimate 3B). Also, did you take out any student loans when in college? Assuming you are paying these, this also helps to establish a credit history.

 

Based on what you wrote, you have an open revolving line of credit via your card and an installment account via your car (and potentially installment accounts via student loans). You said you opened the card in November of 2016, so it has been reporting to CBs for probably 3 months (depends on the bank, some are weird and don't report the first few months).

 

I'd say your first step forward would be finding out what your real FICO scores are so you can better determine which banks are suited to your profile. Assuming a low score and thin credit history, I'd recommend trying for a Discover IT Secured card and/or a Capital One Secured card. These cards require a deposit that is eventually returned to you once the card "graduates" into a full fledged credit card 7-12 months down the road (Discover considers graduations after the 7th statement).

 

What you really want to do when you're this early in your credit journey is to establish a few lines of credit and pay them off in full every month for at least a year. The major factor that will be holding your score down at the moment will be AAoA (average age of accounts). The longer you hold onto your accounts, the higher your AAoA will go. It's important to remember that it is preferable to open a few accounts now, at the same time, so they all age together; rather than opening one now, then another one in a few months, and another a few months after that because your AAoA will barely increase (as each new account lowers your AAoA).

 

However, if your scores are fine and you're paying all of your loan and credit card bills on time and in full, then I'd hold off on applying for new cards until you secure that apartment. You don't want many recent hard pulls (or HPs, basically when someone else checks your credit to approve you for a card, loan, mortgage, lease, etc.) on your account when trying to land a mortgage or apartment.

 

Best of luck and welcome to the forums!

Message 2 of 5
Anonymous
Not applicable

Re: Help - When will I have an actual credit score starting from no credit?!

Thank you so much for the information! 

 

In regards to my credit card, I currently have a capital one platinum card and that is it. I keep thinking about getting a secured card but do not know if there is really a point? I also felt it would probably be a good idea to wait to get my second card until I move. I just use my one credit card and then my debit card for all my payments. In regards to student loans, fortunately I do not have any. So that leaves me with just the one credit card and my car payments to help build my credit.

 

Thanks again! 

Message 3 of 5
Anonymous
Not applicable

Re: Help - When will I have an actual credit score starting from no credit?!


@Anonymous wrote:

Thank you so much for the information! 

 

In regards to my credit card, I currently have a capital one platinum card and that is it. I keep thinking about getting a secured card but do not know if there is really a point? I also felt it would probably be a good idea to wait to get my second card until I move. I just use my one credit card and then my debit card for all my payments. In regards to student loans, fortunately I do not have any. So that leaves me with just the one credit card and my car payments to help build my credit.

 

Thanks again! 


Great, so you have an unsecured credit card from a reputable bank that reports to the bureaus! You're in great shape. If I were you I'd consider these two main options:

 

1) Apply for a Discover IT card. Discover loves thin files with no negatives. If you are declined for the Discover IT card, call them and say you'll accept the Discover IT Secured card if they do not want to give you the unsecured card yet. If you get the unsecured card, great! The Discover IT card is a great card with good rewards and is known to grow quickly. If you get the secured card, great! Discover graduates secured cards after 7 months of on time payments. Either way, you end up with a Discover IT card. I'd make sure to charge something on both the Capital One and Discover card every month, and pay one of them off in full before the statement cuts. But, make sure that ONE of them reports a small balance each much (something like $10 is fine). For some reason FICO does not like when you have multiple credit cards reporting zero balances every month. After 7 months, you will have established a good credit history of on time payments to both credit cards and your loan.

 

2) Do not apply for any other cards right now. Put all of your spend through your Capital One card and make sure to pay it off in full every month before the statement cuts. After 6 months of use, you have an established history of good credit payments. You should easily be able to apply for another unsecured card from another major bank that offers some good cash back rewards.

 

Personally, I'd probably try for option (1) if you aren't trying to get that apartment super quickly and can manage to live at home for the next 6-12 months. If you really want that apartment earlier, I'd probably go with option (2) and wait as long as you can to establish as much good history with Cap1 as possible before applying for the apartment.

 

Either way, like I said, you managed to get an unsecured card from a reputable bank as your first line of credit, which is great!

Message 4 of 5
EAJuggalo
Established Contributor

Re: Help - When will I have an actual credit score starting from no credit?!

Previous poster was incorrect.  In order to have a credit score you must have two things, an account reporting more than six months ago and one that has reported in the last six months.  So once your Capital One Platinum is seven months old you will have a credit score.  Optimum for scoring purposes is three revolving lines (credit cards) and at least one installment loan.  Like your car.

Chat online with Capital One today and ask if they have any offers for your account.  More than likely they can PC you to a Quicksilver and you'll get 1.5% cash back.  Then ask for a CLI.  Mine went from $500- $1500- $2000 in the first six months I had it.

I would go ahead and app either the Discover Secured now or wait until June and app the unsecured version.  You probably won't get approved for an unsecured with no score and a secured card usually unsecures in less than a year.  Once you hit June and have a score you can start doing pre-quals or getting offers in the mail.

EX700 TU 704 EQ 694 4/03/22
Cap1 QS-$4,500 Chase Freedom Flex- $800 Chase Freedom Unlimited- $1,000 Victoria's Secret- $1,200 Citi DC- $800 Amazon Store Card- $3,500 AMEX Hilton Honors-$1,000 Discover It-$1,000 Wal-Mart MC $290 Chase Sapphire Preferred-$5,000 NFCU Flagship $13,800 AMEX BCE-$1,000 AMEX Gold-$5,000 AMEX Delta Blue $1,000 Lowe's $5,000 Navy Platinum $17,000 AMEX BBP $2,000
Message 5 of 5
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