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Will my credit score start out really low (I'm establishing credit)?
I'm applying for a secured credit card that reports to all 3 bureaus. How long will it take to establish credit? What would my beginning score be after I've made my first payment? I know my credit score won't be excellent overnight since length of credit history is important...but would it start out VERY low? I'm hoping it would start out at least in the 600s.
I can't put much on the card but I plan to only charge about a third of the deposit and pay it off every month.
OMG...six months before a score even shows up?! I'd talked to a USDA lender about a mortgage and he was thinking I'd have a score within 2 months! I didn't expect it to be high or anything, but I expected it to exist and be at least 600. (I've never had credit, but I DO have stable income and a history of "alternative credit" that they sometimes accept.)
I know that credit requires as much care as a newborn baby. I guess I just need to breathe and take things as they come.
7 Answers
- Go with the flowLv 71 decade agoFavorite Answer
During the first 6 months - you will still have no rating.
After that you might start out in the 600's.
Sounds like you'll use the card wisely.
Google two things to play with the Fico score
Fico Score Estimator http://www.bankrate.com/calculators/credit-score-f...
Credit.com Credit Score Calculator http://www.credit.com/calculators/score/
These will show you how doing the right thing can give you top credit.
Don't forget to the your credit reports once a year at
Annual Credit Report.com
Reports are free - always have been. Never get conned into paying for them.
It's the reports that truly matter. Knowing how to maintain top scores comes next.
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Mortgage lenders don't know the rules about credit scores.
Often, they give out bad advise.
It is not their job to know how to fix credit (they are never taught how).
They are in the business of marketing and selling loans (that's what they know)...
- bdancer222Lv 71 decade ago
You will have to use that new card for at least 6 months before it even begins to count in your FICO score. Even then your score will be very low -- not even close to 600. FICO has a scale of 300 to 850. Anything less than 300 defaults to 0. After 6 months you score might be above 400.
You will need at least 24 months of consistent, on time payment history to see any kind of decent score. It takes years to build good credit. There are no shortcuts.
Source(s): BD - Anonymous1 decade ago
I think you question was already covered but I wanted to add one more point. A reasonable 18 month goal (assuming you are starting from scratch) would be 640 - 650 as that is where you may find decent rates on houses and cars and other major finance purchases.
Be patient, learn and have fun with it.
- Anonymous1 decade ago
It starts out non-existent, but it goes up fast. After 6 months of on-time payments, it should be in the high 600s-low 700s range.
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- Anonymous7 years ago
Here you can get rates: http://www.credit-and-finance.com/
RE:Will my credit score start out really low (I'm establishing credit)?
- Anonymous5 years ago
maybe that is correct
