Why can’t you build your credit score before the age of 18?

When you turn 18, you will likely become interested in vehicle finance in order to claim your transportation independence. Alternatively, you may be interested in a credit card or insurance.

However, your lack of a credit score may hinder your application. We have a look at whether you can work on your credit score as a minor, and how you can get started after turning 18.

Tip: Your credit score may surprise you. Join CreditSav to get your score for free.

Can you build your score before you’re 18?

According to Lindie van Gass, a certified financial planner who runs personal finance blog Bank Beter, the short answer is no, as minors cannot sign for credit cards or loans.

She explains that in some rare cases minors can be added as an authorised user to their parents’ credit accounts, which may assist them to build their credit score. However, this is not the norm. Most youth will begin with a credit score of zero, and this can only change once they have engaged with credit, which could be long after the age of 18.

There is a role that parents can play, however, in preparing their children, as Van Gass points out. “There are steps parents can take to teach their young children about credit and the responsible use of debt, which will assist them in building a credit score later in their lives,” she says.

READ MORE: Can you go through life with a credit score of zero?

How should you get started?

Van Gass says that the two most important factors in building your credit score are the utilisation of your available credit and your payment history.

“The longer you have been making use of credit, the more benefits you build up in the long run. It’s important to start early in order to have a good credit score by the time you start buying fixed assets,” says Van Gass.

According to Ernest Zamisa, financial adviser at Momentum Financial Planning, you can start building your credit when you have some form of income from the age of 18, by using mainly your credit card to transact while maintaining a positive balance on your card.

“Another option is to open small accounts with retail outlets to establish a long history of honouring your payments. This will establish a profile of the type of creditor you are and your behaviour regarding debt,” says Zamisa.

The first step in growing your credit score is knowing it. Sign up with CreditSav today.