No one has a credit score of zero, no matter how badly they have mishandled credit in the past. The most widely used credit scores, FICO and VantageScore, are on a range from 300 to 850. As of April 2021, only 3% of consumers had a FICO 8 score below 500.
Why you don't have a credit score. There's no such thing as a zero score. Having “no score” simply means you don't have any number tied to your credit profile. You can be absent from the scoring model if you've never had a credit card or loan, or if you haven't used credit in a long time.
Usually, a zero credit score means that there's not enough credit history on your credit report to calculate a score. The credit bureaus don't have enough information about your spending history to calculate a score for you.
Your Credit Score Doesn't Start at Zero
Starting with no credit score doesn't mean your score is zero. Rather, your score simply doesn't exist. That's because your credit score is calculated only at the moment that a lender, credit card issuer or other entity requests it to check your creditworthiness.
If you've had credit in the past but no longer use credit cards, or you have closed accounts on your report, there won't be recent activity to produce a score for you. And even if you have recent credit activity, you still may not have scores if your lenders don't report to the bureaus.
Lack of a credit score can be the result of insufficient information in your credit history or because you don't have any credit accounts.
The truth is that we all start out with no credit score at all. Credit scores are based on the information in our major credit reports, and such reports aren't even created until we've had credit (e.g., a credit card or loan) in our names for at least six months.
Without an established history, your credit report and credit score don't magically appear when you turn 18, despite many common misconceptions. Once you have established credit, your first credit score could range anywhere from lower than 500 to well in the 700s, depending on your initial financial performance.
In common credit scoring models, 300 is typically the lowest possible score. However, scores that low are extremely rare. There are two major credit scoring models: FICO and VantageScore.
You've never been listed on a credit account. You haven't used credit in at least six months.
It is possible to get a loan with no credit, but there are some potential pitfalls to be aware of. Lenders may require you to put up property (such as a car or a home) as collateral to secure the loan, and loans for people with no credit may come with high interest rates and fees.
No, everyone does not have a credit score. More than 50 million people in the U.S. do not have a credit score right now due to a lack of credit history.
So, given the fact that the average credit score for people in their 20s is 630 and a “good” credit score is typically around 700, it's safe to say a good credit score in your 20s is in the high 600s or low 700s.
The Takeaway. It usually takes a minimum of six months to generate your first credit score. Establishing good or excellent credit takes longer.
Credit scores issued by the most popular credit-scoring models in the U.S. begin at 300. However, this is unlikely to be your first credit score unless you are irresponsible with your finances. You typically start building credit after you get your first credit product, be it a credit card or a student loan.
You don't need a credit card to have a credit score. Car loans, student loans, rent payments and even utility payments can help demonstrate your creditworthiness.
It's a trick question. At face value, “What does your credit score start at?” can be a trick question. You see, you don't actually start with a credit score at all. That is, you aren't born with a credit score, nor are you automatically given one when you turn 18.
It will take about six months of credit activity to establish enough history for a FICO credit score, which is used in 90% of lending decisions. 1 FICO credit scores range from 300 to 850, and a score of over 700 is considered a good credit score. Scores over 800 are considered excellent.
If you are invisible to the financial system, it means there is not enough information about you on your financial track record. It's known as having a 'thin' or no credit file. This usually means that either you have very few credit accounts, haven't used credit for a long time or have never used it at all.
Age well for best results
While six months is the minimum age before you're fully scorable, that's the bottom of the range -- way at the bottom. Most lenders (and scoring models) consider anything less than two years of credit history to be little more than a decent start.
Someone who lacks a credit history with one of the nationwide credit reporting companies is considered "credit invisible" or a credit ghost. "Unscored" consumers have a credit file, but the data is too sparse or too old to produce a credit score. That can include: Young people who are just starting out.
You can build your credit at 19 by becoming an authorized user on someone else's credit card account or by getting your own credit card. You can get your own credit card when you turn 18 as long as you have an independent source of income.