<p>uhhh, I'm not a finance major here, so....what's FICO stand for?</p>
<p>FICO = Fair Isaac and Company</p>
<p>I used the term FICO score pretty loosely. Your 3 FICO scores have different names dependent on the credit bureau:
Experian = FICO
Transunion = Empirica
Equifax = Beacon</p>
<p>But FICO score has become synonymous with credit score</p>
<p>(I'm a poli sci and rhetoric major, but I watch Suze Orman way too much for a 17 yr old :) )</p>
<p>Thanks! As long as I don't keep a debt, then I hope never to worry about all this "schmuff" that's posted here! It's so much! :confused:</p>
<p>Hahahaha. Just stay informed about your credit history. Check it every year (it's free!) and that makes sure you don't have people opening accounts in your name. Checking your credit report allows you to make sure identity theft isn't happening.</p>
<p>::Your FICO score is a reflection of your credit history. Poor credit history often means low credit score.::</p>
<p>Exactly, but your credit history is more useful by lenders in determining your credit habits for specific types of credit. Now if the institution is very large, they won't have the manpower to check your credit history and will stick only to your credit score. However, local banks, car dealerships, real estate agencies, and many smaller lenders will focus more on certain areas of your credit history instead of just looking at the numerical average of the whole thing (i.e. your credit score).</p>
<p>I'm not disputing anything you are saying. I'm just point out that there is a lot more to your credit than simply your score.</p>
<p>I suggest that you ask your parents to add you to their credit card account, but only if they have a good record of paying those bills on time.</p>
<p>But you won't build any credit that way. </p>
<p>The easiest way to lower your credit is identity theft. It sucks because it's not your fault at all, but you will be virtually black-listed. A family friend had that happen to him and now EVERYTHING has to be in his wife's name.</p>
<p>You do build credit if you are amn authorized user. My parents planned to buy me gas for my car anyway, and so they gave me a credit card with me as an authorized user so that I am building credit. I actually have 56,000 in possible credit right now.</p>
<p>Really? Then I'm building credit too, yay! (Though I still don't have a bank account, how does that affect it?) </p>
<p>But can they distinguish whether you are actually buying stuff or if it's just your parents? Because everything is on the same bill...</p>
<p>Back when I was in school the major banks near school had credit card programs for students allowing them to get credit cards (I do not remember if parents had to co-sign) ... even though students had little or no income. I did not take advantage of these offers ... instead I planned on getting a credit card wherever I landed for my first job ... and then, after I had a high paying job, the same banks would not accept me for credit cards (without my parents) because I had not lived at the same address or had the same job for long enough. It was very strange ... no problem getting credit while I'm bleeding money in school ... tons of problems when I have a great job. Punchline ... I'd bet there will be opportunities at school to start your credit history ... and I'd suggest jumping on them.</p>
<p>I think student loans help build credit.</p>
<p>Mavin: Got it, just wanted to make sure I understood what you were saying.</p>
<p>Zantedeschia: As an authorized user, you automatically build credit. Credit card companies could care less who's spending and who's paying. So you do build credit. According to Suze Orman, when you're added to your parents credit card as an authorized user, you sort of "inherit" their credit history. This means if your parents have great credit history and score, you can reap the benefits of that (because you're under 18).</p>
<p>And yes, student loans do help build credit. About 10% of your FICO score is composed of having the right mix of credit: balancing loans and credit cards, for example--not just having all loans.</p>
<p>What if I'm not under 18? Can I still "inherit" my parents' credit?</p>
<p>That I'm not sure about. But you still can reap the benefits of being an authorized user because you're building credit that way.</p>
<p>And I'm not sure how this "inherting" of credit works; according to Orman, your parents credit history become sort of yours, but I can't find a way to validate it. But for sure, you do build credit being an authorized user.</p>
<p>the problem with this whole thing about authorized user is that the crediter has no obligation to report the authorized user to the reporting agencies. Or some may only report to one or two angenicies.</p>
<p>Bank of America recently stopped reporting AU's this month I believe. They're still reporting my AU account of my mom's BofA gold to experian, but not sure when that'll disapear--like the other have already.</p>
<p>When you're under eighteen, Transunion and Equifax will not get your information; Experian does take reports for individuals under 18.</p>
<p>And yes, some may only report to one or two agencies, hence you have more than one credit score/FICO score. Larger companies tend to check all three FICO scores or at least two.</p>
<p>And there is an obligation for lenders and credit card comapnies to report to at least one bureau or else they have a shot at chasing after you if you default. Banks (unless giving a loan, etc.) don't report general things such as savings, CD's, checking, etc.</p>
<p>I was just approved for American Express card with a 2000 limit and I have no job, no co signer, and just turned 18 August 6. So I'm super happy. Whats funny is that I have bank accounts with banks and like they automatically give me the platinum atm card instead of the gold or the basic one.</p>
<p>Creditors are banking on the fact that young people can't handle credit, so they give high credit lines hoping to suck teenagers/young adults in. It benefits the people that know how to use credit and are young. :)</p>