Credit For My Age 20 yrs?
I am 20 years old and I have several credit cards with credit range from 2500-7500 and one Chase Southwest Airline card of 32k and one Discover card of 12k. I also have a AMEX Platinum card. My credit score from Experian is 786. I get my credit report from CreditSecure from American Express. I am just wondering if I am on my way to be able to have no credit problems for the rest of my life. I have no late payments, not one red mark on my credit report. I don’t have any auto loans, I paid cash for my vehicles and I only once took a 4635 loan, which I’m still paying on. Is this good for my age?
I don’t know how to reply or maybe this is the way but the Chase card was my parents which I am also on the account for which I think helped me a lot. At the time my credit was 704 from Experian. But, if I keep the payments and about 6 years from now do you think I will be able to get a 400,000 mortgage? I also added my wife to all my cards so if we both apply, would we have a better chance? I said 6 years because hopefull I will be done with school then lol.
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October 3rd, 2010 at 4:25 am
Great to Excellent for your age or for anyone, because this shows that you are credit worthy, and credit responsible. As long as you continue to do the same things you are dong now, that got you this far, you will continue to stay on top. Keep in mind it also depends on your debt ratio, paying on time, staying under your credit line, and increasing your credit limits on all of your credit lines. There is still a lot to learn for credit for you, and for all of us. So, you should probably purchase a book on credit , credit cards, money management, these books will help you to better understand credit and how it works. Also, because it not traditional, and they are not teaching how to deal with finances in school, you are way ahead of the game for adults your age, and I commend you, keep up the good work. Also, by you getting a credit report every year you are able to see first hand any negative entrys or fraudulent entrys that are on your credit report. The highest score you can achieve is a score of FICO of 850 , this is something you should strive for. And I am sure you can do it. This is a perfect score, and it’s something that I am trying to achieve, this or something close to it. Five starts ***** for you and I wish you all the luck.
October 3rd, 2010 at 4:25 am
yes actually it’s a very good score. Usually anything above 750 is great.
Most people your age that have limited credit START OUT at 600.
October 3rd, 2010 at 4:25 am
If your credit score is above 680, you are considered a "prime borrower" and will have no problem getting a good interest rate on your home loan, car loan, or credit card.
To be a "prime borrower" at 20 yrs old is exceptional. Well done!
The credit rating system is meant to develop a snapshot of the risk you currently represent to a lender. Several parameters in your credit file, including length of credit history, number of open accounts, loans, mortgages, public records, and others are formulated to produce a three-digit score between about 300 and 950. There are other scores used by lenders and insurance companies (some of which are developed by FICO) such as Application and Behavior scores. These other scores take other information into account. Usually a lender will use a combination of your credit score with other factors when determining your risk. They all have the same objective, to determine the borrower’s potential risk. Regardless of whether the score was generated by FICO or a system based on FICO parameters, they all yield an industry standard three-digit score.
October 3rd, 2010 at 4:25 am
Currently, you are doing very well. But there is no way I can promise you will never have credit problems… If you keep this way and if your identity does not get stolen and misused, you should have a great credit history…
Congratz & good luck