Do you have to do something bad to get a below average (700) credit score?

Deal Score0

I just did a credit report and all I have is a federal loan (government). I just recently got it and haven’t begun to repay yet. But I haven’t done anything for the credit bureaus to be happy about. Like prove reliability (no I will not try and default). But My credit score seems decent I’m wondering how thats possible (no not complaining).
P.S. This is my first ever loan that even includes credit cards.
Wait I’m still very very confused. You answer No but at the same time I have a better credit score then the average person and I didnt do anything lol. So Is it just me or Am I lost?
Whgat I dont get is am I special lol or is that anyone. Is any college student who took out just a federal loan and not even began paying it back is with this score (approximately). I dont know if thats the general rules like anybody in my situation or this is somehow a shock lol

  1. Reply
    Navy Lifter
    July 21, 2011 at 4:20 am

    No, especially when you’re 18-25 or so, there’s a very limited length of credit history which accounts for a sizable chunk of your total score. Remember, credit scores don’t start at 700 or 800; they start at 0. As you built a history of repayment (through loans-student, mortgage, car) and revolving lines of credit (credit cards) that score will steadily increase as your continue to make on-time payments and show responsibility.

    Good luck and live (and spend) within your means!

  2. Reply
    Joe the Ice Cold Eskimo
    July 21, 2011 at 4:58 am

    Well first of all, average credit score is around 680, but you hit it on the head when you said you have not proved your reliability! In my business, we look for at least 5 different lines, 7 is better, on your credit report. Please bear this in mind, installment loans, such as, cars, house mortgages look better on your report than credit cards. Your score always drops when you take on new credit, on credit card debt, always try and keep it under 50% of your credit limit. Even if you pay off a card every month, the amount you charged will show up on your credit report. So for example, you have a $ 1000 card, never charge more than $ 500, even if you pay it off every month. Don’t carry a balance of more than 50% also.
    Your federal loan will start to help you build up your reputation, but I would try and add 2 credit cards. The best way to use them is, charge up to 50%, pay it off and NEVER close these accounts. Closing your account will make your score drop as well..
    Good luck, use your credit wisely! You can mess it up really fast and it takes a very long time to fix it! Years to fix it!

    Added… Score normally start off about where yours did, women tend to get a higher score than a man.. The rules for calculatin your score are all kept secret. All I can tell you is what I see on a day to day basis. Now you don’t have to do anything wrong for your score to drop! Such as make a late payment, if you go and get too much credit too fast makes your score go down. One to two new line of credit per year is about the max without making your score dip into the low 600 or even high 500’s. When you make a payment more than 30 days late, it is reported and your score goes down. If you have a cell phone bill that you don’t want to pay, your score will go down. If you have a doctor bill you don’t want to pay, your score will go down.

    I know it is hard to understand this whole process and please don’t try. If you do the things I listed, live within your means, you will be just fine.

  3. Reply
    July 21, 2011 at 5:32 am

    If your credit score is 700, that’s far from average, it’s borderline excellent. From what you say, it is like that because of your lack of financial debt of any kind. You are like honey to bees for any company that sees you have NO debt. Also, credit bureaus don’t have to be “happy”, all they do is put reports of your credit history into a file. Like how well do you pay your mortgage or rent; how many cards with revolving credit [like store credit cards], do you have, and whether or not you pay your bills on time. If you are ever late, the report will show 30, 60, or 90 days late, etc., which will be seen as a bad risk by anyone thinking about extending you credit.

    A good credit CARD would be one that is “new” in that it offers no interest for 12 months, and no balance transfer fee for however long it says. Just make sure you pay everything on time, ALL the time, and your score will go even higher.One good way to figure out how good your credit is, is by how many credit offers you receive in the mail. Card companies don’t go after people with not-so-great credit.

    And one last thing: for all of those offers you throw away, first shred any part of it that holds you name, address, etc. Unused credit approvals are 1 of the easiest ways for identity theft to occur. Theives will ACTUALLY root around in your trash to try and find some if they think there might be a few they can use.

  4. Reply
    July 21, 2011 at 6:01 am

    You have a very good credit rating then! Good for you! Keep up the good credit score, and if you needed their help, I believe they will lend you without hesitation ( as long as you don’t screw it up)lol!

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