Can You Have a Credit Score Before 18?

A credit score is a numerical representation of an individual’s creditworthiness, typically ranging from 300 to 850. Lenders use these three-digit numbers to assess the likelihood that a person will repay borrowed money on time. A higher credit score generally indicates a lower risk to lenders, which can lead to more favorable terms, such as lower interest rates on loans or credit cards. While credit scores are often associated with adulthood, there are specific situations where a credit history, which forms the basis of a score, can begin to develop before a person turns 18.

Understanding Credit Scores and Age Requirements

Credit scores are calculated using information found in credit reports, which are maintained by the three major credit bureaus: Equifax, Experian, and TransUnion. Individuals must typically be 18 years old to legally enter into contracts, including credit agreements, which is why credit scores are commonly linked to reaching adulthood. Despite this legal age requirement for contractual obligations, credit bureaus do not have a minimum age for reporting data. This allows certain financial activities to generate a credit history for a minor, laying the groundwork for a future credit score.

Pathways for Minors to Build Credit History

Being added as an authorized user on an adult’s credit card account is a common approach. When a minor is an authorized user, they receive a card linked to the primary account holder’s credit line, but they are not legally responsible for the debt incurred. The primary account holder’s responsible payment behavior, such as making on-time payments and maintaining low credit utilization, can positively impact the authorized user’s nascent credit file, as this activity is often reported to credit bureaus for both parties.

Another, though less common, method involves co-signing a loan. While contractual limitations make this rare for true minors, if a minor were to co-sign a loan, they would become equally responsible for the debt alongside the primary borrower. This responsibility means that any late payments or defaults would negatively affect both the minor’s and the primary borrower’s credit histories.

Secured credit cards can also play a role, though a minor cannot apply for one independently. An adult might obtain a secured card, which requires a cash deposit as collateral, and manage it in a way that provides an educational experience for a minor. While the minor wouldn’t have a direct account, observing and participating in the responsible use and repayment of such a card, under adult guidance, can prepare them for independent credit management at age 18. The adult’s responsible management of a secured card can indirectly demonstrate creditworthiness that may be beneficial for the minor’s understanding of credit.

Key Elements of a Minor’s Credit Profile

Once a credit history begins to form for a minor through authorized user status or other means, several universal factors contribute to the eventual credit score. Payment history holds significant weight, accounting for about 35% of a FICO score. Consistent, on-time payments on any accounts appearing on the minor’s credit file are crucial for building a positive record.

Credit utilization, which is the amount of credit used relative to the total available credit, also plays a substantial role, making up around 30% of a FICO score. Keeping balances low compared to credit limits helps demonstrate responsible credit management. The length of credit history contributes approximately 15% to a FICO score, meaning that older accounts with a consistent positive history are beneficial.

While less applicable to minors, credit mix, representing the variety of credit accounts (e.g., credit cards, installment loans), can influence about 10% of the score. New credit inquiries, which occur when new accounts are opened, can temporarily impact the score, also accounting for about 10% of a FICO score. Too many new applications in a short period can signal higher risk to lenders.

Establishing Independent Credit at Age 18

Any positive credit history accumulated as a minor, such as through authorized user status, can provide a foundational advantage when establishing independent credit accounts at age 18. This established history can make it easier to qualify for initial independent credit products.

Common first steps for young adults include applying for a student credit card, which often has more lenient approval criteria, or a secured credit card. With a secured card, the credit limit is typically backed by a cash deposit, reducing risk for the lender. Another option could be a small personal loan, especially if co-signed by an adult, which can help build a payment history for installment credit. It is advisable for new adults to obtain and review their credit report from each of the three major credit bureaus to ensure accuracy and understand their current credit standing.