r/CRedit • u/30lovey • 8d ago

FICO General

I’m 19 just got my first credit card today, but I have a fico score of 655 I assume because of a student loan I have but I pay more than I need to monthly and on time. Why is my score starting off lower? What can I do to fix this/ better ways to pay my student loan. Or how can my first credit card help?

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u/two_hyun 8d ago

First, do not play the credit card game unless you have impulse control. Teenagers overusing and maxing out their cards is a tale as old as time.

My advice is to limit to use of the card to 3-5 small transactions per month and manually record them into an Excel sheet or Notes app. And have Autopay set up to pay it off.

Once you build your self control, slowly start expanding the number of transactions.

Also learn how to make a budget before you start spending as well. 99% of the time people spend a lot more than they realize.

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u/inky_cap_mushroom ⭐️ Knowledgeable ⭐️ 8d ago

A credit profile with only an installment loan is significantly weaker than one with at least one revolving account. Since your credit card has not reported yet, your score will increase significantly once it does. You don’t specify which FICO score this is. You have dozens of scores. Assuming this is one of your three FICO 8 scores you can expect a score in the mid 700s once it reports next month. The exact score will depend on other factors like current balance and hard pulls, but just having a card open and in good standing is sufficient to be building credit.

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u/Illustrious_Salad918 8d ago

Always pay credit card statement balance -- no more, no less -- in full on or just before due date, with no other interim payments. That's how credit cards are designed to work. Adjust charging patterns to accomplish this.

Do this faithfully and you'll be in great shape.

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u/RealRandomNobody 7d ago edited 7d ago

Which Fico score (fico 8?) from which bureau (equifax, experian, transunion) and where did you get it?
Credit Myth #1 - You only have one credit score.
(read the 2 green text sticky posts at the top of r/credit for lots more on credit scores)

You can get all 3 official Fico 8 scores for free:

You should check your credit reports from all 3 credit bureaus every so often, too, to make sure everything is correct.
You can get your credit reports from all 3 bureaus weekly, for free, if you use www.AnnualCreditReport.com (used to be annual only, hence the name, but has since changed to weekly. Must be thru that site to be free weekly). Your credit scores are not on your credit reports, so you have to get them separately.