09 Dec 2022

What Credit Score Do You Start With?

Raise My Credit Score

Individuals interested in learning more about how their credit score can affect their potential of gaining approval for a home loan may want to know what credit score they start with. Generally, most individuals start with no credit score, seeing as it is not possible for an individual to have a credit score of zero. This is because minors cannot legally enter into contracts until they reach the age of 18, so the public does not start developing their credit score until they become legal adults. 

Starting out with no credit score can result in difficult situations seeing as individuals cannot apply for home loans, personal loans, auto loans, or credit cards without having a credit card or financial history. Credit companies and home loan providers will perform in-depth checks into their applicants credit scores and histories to determine their overall risk-factor as a client which cannot happen if the applicant does not have a credit score. 

Luckily, there are countless ways for individuals to begin building their credit scores, including the following examples:

  • Maintaining low credit card limits
  • Limiting credit and loan applications
  • Paying all bills in full and on time
  • Decreasing existing debt
  • Avoiding the accrual of additional debt

Credit Score Ratings

  • Excellent: 833-1200
  • Very good: 726-832
  • Good: 622-725
  • Average: 510-621
  • Below Average: Below 509

Individuals who apply for a home loan product with a below average credit score are less likely to gain approval than an individual with an average credit score. For this reason, home loan providers recommend potential borrowers work on boosting low credit scores prior to applying for a home loan.

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