When does credit start, like a credit score? Does it start when you open a banking acoount?

Question

I don't have any credit cards and have not taken out any student loans. Kinda confused as to when it all starts.

Answer 1

A credit score starts when you open a line of credit with a vendor or bank. If you only have a savings account you would not have a credit score. The best way to start a positive credit score is by getting a credit card with a store you frequent and make small purchases monthly. The credit line will be $100 or so. Make your purchases using the card where you would normally use cash and pay it off every month. This will build a good start to your credit score.


Beware of the Credit Card scam if you are going to college where you get your books and then 10 card companies want you to get their card while in college. Why, because that is where most people incur all their debt. You all already are lacking funds and will choose to use the credit card to buy these things you think you need. In the end of 4 years you will have your school loans plus the maxed out credit card to pay for.

Answer 2

The best thing to establish credit is a credit card with a low rate. Pay it off each month so the creditors know that you are credit worthy. I started establishing credit with a bank account, but it had a line of credit as overdraft protection. I got a few cards at a low credit line and would pay them off each month. Another good thing to help start credit is a car loan. I got a car and my parent's co signed. Now I am on car #3 and can do it on my own because of my excellent credit. I am 27 and have a credit score over 800 which is amazing. The advice that I have for you is don't abuse credit. It is hard to get anything good in life when you have abused your credit. You credit is important to protect! It will start when you begin to open up accounts. Don't rush!

Answer 3

Any thing credit begins when you get a credit car. i have a check card which is my money that i made in my job and you use it like a credit card but it doesn't have credit. You should start getting credit i guess around now cause it sounds like you are going to start college or you already have. But you can't go crazy when you get one because it can cause you to have a bad credit score which for the future will make it difficult for you to purchase anything such as a house or a car. So be very careful when getting a credit card and when you use it. Keep up on payments and all that.

Answer 4

A credit score starts when you receive credit from a creditor that reports to the credit bureau. Credit scores range from 350 - 850 with the higher score being the best.

A lower score means a high risk of non payment of debt. A low score is a indicator of slow payments, non payment, collection account and etc. This generally means a higher interest rate to offset the risk.

An average credit score would be 675.

Answer 5

Hope this helps. Your credit will start as soon as you open any revolving credit acct. Such as a dept store credit card, or regular credit card. Or student loan or regular personal loan.
Bank accts do not acct, they are regulated only under chexsystems. And make sure that you never screw with either one because they will mess you up for life with buying a home, or being able to open a simple checking acct.
Im sure you dont want to use money orders for the rest of your life :>)
so becarefull with credit.

Answer 6

Your credit rating, company reporting, and credit bureau watching of you begins when you turn 18. At that point any and all transactions that involve you and your credit are monitored. Until that point, you are a minor and are not responsible for your own credit yet. After you turn 18, any checking account you open, check you bounce, credit card you apply for, etc.. are all under scrutiny by the various reporting agencies that will effect your life for the next 50, 60, 70 years. Tread very carefully and watch what you do and who you do it with in regards to your credit. Also monitor your credit score through the various free reports you get at least once every 6 months to ensure accuracy and fair reporting.

Answer 7

My advise as a loan officer and credit councelor to you would be stay away from credit cards. 1st buy a home, this is the easiest and most important investment you will ever make in your credit file! 2nd buy a car new or good used.Stay with instalment loans only. revolving debt is trouble and never goes away. so avoid it at all costs. If you need a cc use your debit card attached to your checking this way you can't spend what you don't have
If you would like help geting preapproved for a home loan
contact me by clicking on my profile, and I will contact you promptly.

Answer 8

your credit score starts when you borrow any type of money... credit card, car payment, house payment or even strudent loan...

Its based on your payment history. If you are a slow payer then your credit value goes down and just the opposite if you on time.

You dont have a credit history until then even if you have checking account or savings.

Answer 9

It is linked to your social insurance or social security number and other personal details.
the history will start as soon as one of these numbers is generated or you take a loan or dredit item of any sort (eg Cell Phone), anything that you use now and pay later.

unless you borrow, your file remains blank, but history is still building.
if you get a SS number today and dont get a phone or a credit card for the next 2 years, it will tell a bank that you have sufficient resources to manage your finance without borrowing a single penny. which is great.

Answer 10

credit starts when get a credit card, sign a lease, etc...you dont get credit for turning 18 or opening a bank account, and make sure you're making the payments on the credit card, even if the card has your name on it the person who makes the payments gets the credit.