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Angela Kovacs Explains the Credit Score you Begin With

angela marie kovacs

While there is no real zero in your credit score range, some people don’t have any real score. Hence, anything under 580 is often considered poor credit. A popular myth is that customers begin at the bottom and work their way up the credit ladder. There is some merit to this, but it is more complicated than that. The majority of credit ratings range from 300 to 850. In this article, Angela Marie Kovacs explains what credit score you start out with.

There is no one starter credit rating from which people could make their way forward. This is because your credit score is determined based on your credit records. Therefore, it is obvious that your credit score won’t soar automatically the moment you attain your voting age. It takes at least six months of account operations to factor it into a credit report.

How is the Starting Credit Calculated?

Credit scores are simply deducted through your credit report. The information from your credit score is summed up into a three-digit score that lenders use to determine your trustworthiness.

Angela Marie Kovacs states “Generally, when someone is talking about credit score and utilization, they are specifically referring to the FICO score.”

How to Check the Starting Credit Score?

You can check your starting credit score by requesting a credit report online. In the USA, three institutes usually assist in compiling your credit report, namely, Experian, Equifax, and Trans Union. According to the regulatory guidelines, you are entitled to one free credit report from each of these institutes per year.

You can also log in to the government-approved site to request your credit score. Once you log in and provide proof of your identity, you can access the credit report. Keep in mind that every bureau has its own range of credit scores. These ranges slightly differ from one another in terms of scaling and generating the report.

What Does Your Beginning Credit Score Account for?

Lenders analyze your credit score to identify how risky it is to lend you money. It defines the financial risk they may face while lending you money. Your available score may account for different things. For instance,

Credit History and Starting Credit Score

“If the lenders deny your application based on insufficient credit history, it means that your account is relatively new and not enough to satisfy the requirements. Lenders want to see a detailed credit history before giving you the money. They are looking for credit repayments and building credit scores to trust you enough to lend you the money.” Angela Marie Kovacs concluded.

Hence, you will need to build your credit score over time to apply for a loan or a credit score. The best way to do it is to be responsible with your money. For instance, if you already have a credit card, paying off the bill every month helps build your trustworthiness.

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