What Is the Average First Credit Score?

A credit score provides a numerical snapshot of an individual’s creditworthiness, indicating the likelihood of repaying borrowed funds on time. This three-digit number, typically ranging from 300 to 850, holds considerable weight in financial decisions across various aspects of life. Lenders, landlords, and even insurance providers often use credit scores to assess risk, influencing eligibility for loans, housing, and insurance rates. For those beginning their financial journey, a “first credit score” represents the initial assessment of their credit behavior.

Defining the First Credit Score

A first credit score distinguishes itself from scores of individuals with established credit histories because it is built upon limited data. It signifies a starting point, reflecting a brief period of credit activity rather than years of financial transactions. Typically, an initial credit score falls within the “Fair” or “Good” range (580-739), lower than for established borrowers. This range reflects the absence of an extensive financial track record and a limited variety of credit accounts. The limited history means there is less information for scoring models to analyze, resulting in a more conservative initial assessment.

How Initial Credit Scores Are Calculated

Credit scores are calculated using several categories of financial data, with payment history and amounts owed being the most impactful. For new credit users, payment history, accounting for approximately 35% of a FICO Score, is crucial; even a short period of on-time payments can significantly influence the score. Amounts owed, or credit utilization (the percentage of available credit being used), makes up about 30% of the score, and keeping this low is especially important for new credit users with small credit limits.

Length of credit history, typically 15% of the score, will naturally be minimal for a first score, as it measures the age of accounts. New credit, representing about 10%, is relevant since opening initial accounts is the primary way to build a first score. Credit mix, also 10%, is often limited to one or two types of credit initially, such as a single credit card or small loan. These elements are important, as scoring models adapt their calculations for individuals with thin credit files.

Strategies for Building Initial Credit

Individuals can employ several practical methods to establish their first credit history.
Secured credit cards are a common starting point, requiring a refundable cash deposit that serves as the credit limit. This minimizes risk for the issuer while allowing the user to demonstrate responsible payment habits.
Becoming an authorized user on an established credit account allows the primary cardholder’s positive payment history to reflect on the authorized user’s credit report.
Credit-builder loans are designed to help establish credit; a lender holds the loan amount, and the borrower makes regular payments reported to credit bureaus, receiving the funds at the end of the term.
Small personal loans from banks or credit unions can also contribute to a credit history if payments are made consistently.
For students, federal and private student loans often report payment activity to credit bureaus, aiding in credit establishment.
Some services allow rent and utility payments to be reported to credit bureaus, which can help build a positive payment history.

Accessing and Understanding Your First Score

Once an individual begins building credit, they can check their credit score and report through various channels. The three major credit bureaus, Experian, Equifax, and TransUnion, collect and maintain credit information. Federal law allows consumers to obtain a free copy of their credit report from each of these bureaus once every 12 months through AnnualCreditReport.com.

Many credit card companies and banking apps also provide free access to credit scores, often updated monthly. A first score often falls into the “Fair” (580-669) or “Good” (670-739) range, a solid start to building credit. Monitoring these reports for accuracy is important under the Fair Credit Reporting Act (FCRA), as discrepancies can impact a score.