How Your Age Affects Your FICO Credit Scores

Let’s say you are a 22 year old college graduate looking to buy a car. You go in to get a loan and you are denied because you have no credit history and therefore a low or no credit score. Is it because you are young? Is the finance company just trying to get more money out of you?

Do you know how your age affects your FICO credit scores? Does your age have an impact on your credit scores?

Your age does not affect your FICO credit score. But it is a common misconception that your age does play a factor in your credit scores. It is illegal to consider age, race, religion, national origin, gender and marital status in credit scoring. These are not factored into your FICO scores. Although almost 40% of the population believes age is a credit scoring factor according to a recent survey.

So your age does not have any impact on your Transunion, Equifax or Experian credit scores.

Factors contributing to someone's credit score...

Going back to our college student, the reason he or she may have a low credit score or no credit score at all is because they have not built up any credit history therefore they cannot be graded and given a score.

You need to have a payment history of some sort from an unsecured line of credit, personal loan, credit card, or auto loan to start building up credit.

In your early 20s, you also have not had enough time to build up a lengthy payment history. And the shorter the time period your accounts are opened the less of an impact it will have on building up a solid FICO credit score.

What you can do is get a cosigner or coapplicant like your parents to apply with you and get you a loan to start building credit. Using a cosigner with good credit can help you get a lower interest rate and a lower monthly payment. Then once you make all those payments on time you can qualify for a loan by yourself next time around.

Now you know that your age does not have an impact on your FICO credit scores. What you can do now is take a look at your free Transunion, Experian and Equifax credit scores online and see what kind of credit score you have.