What Is Normal at 19?

[cloudchase]

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?

[user5387]

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@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?

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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.

[cloudchase]

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@user5387 wrote:

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@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.

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Hey, thanks! I know about score cards, but not buckets.

I keep my utilization at 25% max, but that only happens when I have to buy textbooks. Whenever I reach around 20%, I use my debit card or cash instead. I've been looking at different types of credit cards, their rates, and their rewards (if any).

[azguy13]

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@cloudchase wrote:

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@user5387 wrote:

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@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.

---

Hey, thanks! I know about score cards, but not buckets.

I keep my utilization at 25% max, but that only happens when I have to buy textbooks. Whenever I reach around 20%, I use my debit card or cash instead. I've been looking at different types of credit cards, their rates, and their rewards (if any).

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The fact that you understand UTL and credit in general puts you light-years ahead of the typical 19 year old. At 19, most people look at credit cards as free money. So, to answer your question, you are well ahead of where a 19 year old is normally at. 

At 19 I was about to get a CO on an auto loan through USAA and have multiple 30 day lates on my first credit card. Luckily I decided to take control of my credit at the age of 24 and am sitting at a much nicer score. When I started to rebuild, I was at a 530. 

Great job educating yourself with all of this as it will set you up for success in many aspects of life. I have my credit checked randomly due to my profession and if it still looked like it did 8 years ago, I would not have my current position. 

[cloudchase]

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@azguy13 wrote:

The fact that you understand UTL and credit in general puts you light-years ahead of the typical 19 year old. At 19, most people look at credit cards as free money. So, to answer your question, you are well ahead of where a 19 year old is normally at. 

At 19 I was about to get a CO on an auto loan through USAA and have multiple 30 day lates on my first credit card. Luckily I decided to take control of my credit at the age of 24 and am sitting at a much nicer score. When I started to rebuild, I was at a 530. 

Great job educating yourself with all of this as it will set you up for success in many aspects of life. I have my credit checked randomly due to my profession and if it still looked like it did 8 years ago, I would not have my current position. 

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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?

[azguy13]

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@cloudchase wrote:

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@azguy13 wrote:

The fact that you understand UTL and credit in general puts you light-years ahead of the typical 19 year old. At 19, most people look at credit cards as free money. So, to answer your question, you are well ahead of where a 19 year old is normally at. 

At 19 I was about to get a CO on an auto loan through USAA and have multiple 30 day lates on my first credit card. Luckily I decided to take control of my credit at the age of 24 and am sitting at a much nicer score. When I started to rebuild, I was at a 530. 

Great job educating yourself with all of this as it will set you up for success in many aspects of life. I have my credit checked randomly due to my profession and if it still looked like it did 8 years ago, I would not have my current position. 

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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?

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That is good that you came across a teacher willing to teach you about credit. 

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. 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. 

Maybe someone with more knowledge of student loans can chime in and give their input. 

[youdontkillmoney]

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@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?

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^^^^^^^^

When I was 18 and college freshman (actually 17)  I opened up an American Express green card, and about 3 other credit cards over the cours eof a year. The key thing is to pay your bills on time and do not be late or miss a payment. Over time your credit score will get stronger and stronger. Since that time when I was 17 in 1991...I'm 40 now, I still have not missed a payment or even late. I may purposely sometimes just pay the minimum sometimes just to show on my record that I can make consistent payments over 3-5 months and have this show on my record, then I pay it all off. I usually just pay in full. This worked for me and now my FICO is 819 (Experian).

[DaveSignal]

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@cloudchase wrote:
 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. 

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Do you have a job now?  How do you pay the bill on your current card?  If you have income, I think you would be able to get another unsecured card right now.  Try for the Discover IT.

65% of your credit score is revolving utilization and payment history.  A good payment record on a second revolving line will help you with both of those factors.  Its easier on AAoA in the longrun to start with a few accounts now rather than having one account for some time and then adding a new one a few years later.

[cloudchase]

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@DaveSignal wrote:

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@cloudchase wrote:
 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. 

---

Do you have a job now?  How do you pay the bill on your current card?  If you have income, I think you would be able to get another unsecured card right now.  Try for the Discover IT.

65% of your credit score is revolving utilization and payment history.  A good payment record on a second revolving line will help you with both of those factors.  Its easier on AAoA in the longrun to start with a few accounts now rather than having one account for some time and then adding a new one a few years later.

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My job right now is the federal work study program, which doesn't go on in the summer. Also, I just had a hard pull in February for a credit limit increase, so I'd wait for a while.

[DaveSignal]

Discover IT offers a Student card, which I think you could get now with your 6 months revolving history.  One inquiry from February that is clearly not associated with a new account is not going to hurt your chances.