What Should My Credit Score Be at 19?

A credit score is a three-digit number representing an individual’s creditworthiness. It plays an important role in accessing financial opportunities, including loans, apartment rentals, and some employment screenings. For a 19-year-old, a limited or non-existent credit history is common when beginning a financial journey.

Understanding Credit Score Ranges

Credit scores are categorized into ranges, each indicating a different level of credit risk to lenders. While specific ranges can vary, a common breakdown includes Poor (below 580), Fair (580-669), Good (670-739), Very Good (740-799), and Excellent (800 and above). A higher score signifies lower risk, making it easier to qualify for better interest rates and terms on credit products.

For a 19-year-old, a “good” credit score might be in the 620-680 range. This is reasonable given a limited credit history. Lenders understand new borrowers lack extensive records and look for signs of responsible financial behavior rather than a high score built over many years.

How Credit Scores are Determined

Credit scores are calculated using information from your credit report, which includes various factors reflecting your financial habits. Payment history is the most significant factor, accounting for about 35% of your score. This involves paying bills on time, including credit card payments and loan installments. Late payments, especially those more than 30 days past due, can substantially reduce your score.

Credit Utilization (30%)

This measures the amount of credit you are currently using compared to your total available credit. For example, if you have a credit card with a $1,000 limit and a $300 balance, your utilization is 30%. Maintaining low utilization, below 30% of your available credit, is advised.

Length of Credit History (15%)

This considers the age of your oldest account and the average age of all your accounts. Longer histories with consistent positive activity tend to yield higher scores.

Credit Mix (10%)

This evaluates whether you have a healthy blend of different credit accounts, such as revolving credit (like credit cards) and installment loans (like student or auto loans). Demonstrating responsible management of various credit types can positively impact your score.

New Credit Inquiries (10%)

These reflect recent applications for credit. Each hard inquiry can slightly lower your score for a short period, as it suggests you are taking on new debt.

Establishing and Improving Your Credit

Building a strong credit profile at 19 involves several actionable steps that focus on responsible financial behavior.

Become an Authorized User

One common strategy is becoming an authorized user on a parent’s credit card. This allows you to benefit from their established credit history, provided the account is well-managed with on-time payments and low utilization. Ensure the card issuer reports authorized user activity to all three major credit bureaus.

Apply for a Secured Credit Card

Another effective approach is applying for a secured credit card. With a secured card, you provide a cash deposit that acts as your credit limit, typically ranging from $200 to $2,500. This deposit secures the card and reduces risk for the issuer, making it accessible even with no credit history. After a period of responsible use, some secured cards can convert to unsecured cards, and your deposit may be returned.

Consider Student Credit Cards or Credit-Builder Loans

For students, a student credit card can be a suitable option, offering lower credit limits and sometimes requiring a co-signer. Additionally, a small credit-builder loan, offered by some credit unions or community banks, can help. With this type of loan, the funds are held in a savings account while you make regular payments, and the money is released to you once the loan is fully repaid.

Practice Responsible Credit Habits

Consistently making all payments on time, every time, for any credit account is important for credit building. This includes credit cards, student loans, or other bills that report to credit bureaus. Keeping credit utilization low, ideally below 30% of your available credit limit, is also important. For example, if your credit limit is $500, try to keep your balance below $150. Avoid opening too many new credit accounts simultaneously, as multiple hard inquiries within a short period can negatively affect your score. Maintaining older accounts in good standing helps demonstrate a longer, positive credit history.

Regularly Checking Your Credit

Regularly monitoring your credit score and credit report is important for financial health. You are entitled to a free copy of your credit report from each of the three major credit bureaus—Equifax, Experian, and TransUnion—once every 12 months. These can be accessed through AnnualCreditReport.com, the only federally authorized source for free credit reports. Reviewing these reports allows you to verify accuracy and identify any unfamiliar accounts or errors.

Many credit card companies and financial institutions now offer free access to your credit score, often updated monthly. These scores are usually educational scores, such as a VantageScore or a FICO Score, which provide a good indication of your credit standing. Checking these scores frequently can help you track progress in your credit-building efforts.

If you find any inaccuracies or suspicious activity on your credit report, dispute them promptly. You can initiate a dispute directly with the credit bureau online, by mail, or by phone. The credit bureau has a legal obligation to investigate your dispute, typically within 30 days, and correct any errors found. This proactive monitoring helps protect you from potential identity theft and ensures your credit profile accurately reflects your financial behavior.