What Credit Score Do You Start With?
Since minors cannot enter into contracts, the public does not start developing a credit score until the age of 18. At this point, most people begin with no credit score. It’s not possible to have a zero score. Instead, no score exists. Some individuals enter their adult years and have little to no credit too. If they pay for the essentials with cash, they do not rely on credit. Thus, they build no score. The younger generation has a lower average score than the older one.
The situation impacts individuals who need to finance a vehicle or home purchase. It can also impact them when they need to buy a big-ticket item and don’t have enough saved. Credit cards help individuals build credit, especially if they use them strategically. Moreover, it’s important to avoid maxing out the cards.
The best way to build a credit score is to pay bills on time. This includes cell phone and utility bills. Both operate on a post-credit basis. The providers issue a credit to the client until the end of the billing cycle. Once they send a bill to the client, the client must pay it on time. This reflects well on their credit reports.
Down the road when you want to refinance your home loan, a stellar credit score bodes well for you.
Starting Credit Score Conclusion
When most individuals reach the age of 18, they start with no credit score. Once they begin putting utility bills in their name and obtaining loans, their activity starts building their score. If you have no credit or restarting your credit journey, you can still become a homeowner. Contact our loan specialists and ask about our Mortgage House bad credit home loan.