A good chart to kick-off your credit score lesson.  We know that a high credit score is desirable, so why do you think credit card scores for 18-24 year olds are so low?

Here are some explanations (from CreditCardForum):

• Let’s be honest here… there are many people who mangle their credit during college and post-college years. It’s not until a bit later when they realize how much damage was inflicted and finally start managing their credit properly.
• Credit scores (FICO and competitors) all take into account the age of your credit history and accounts. The longer the (positive) history, the more it will help your score. This is a reason why adults who have had accounts for decades tend to have higher scores.
• Even if you never had major indiscretions with your credit as an early adult, as you get older, you hopefully start building up a nest egg and paying down debts like your mortgage, student loans, etc. This of course helps your score.

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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