How long will it take to build my credit?

When we talk about building credit, the wait can be really desperate, because we want to see results as soon as possible and having an affected credit or no credit at all, does not open many doors, at least, none that is of high benefits for you.

Since to obtain any type of loan or service from any company, it is necessary to have a good credit history, because all the entities use this as your letter of introduction and to be able to prove if you are a financially responsible person, but everything goes step by step and takes a period of time.

Building a credit score from scratch can take anywhere from two to six months, depending on the type of credit score you are looking at. The two major credit scoring systems vary in how soon they will display a score. You can establish a VantageScore within one to two months of having a line of credit. Your FICO score, the score used in most credit decisions, takes at least six months to generate.

You can build a good credit score fairly quickly, as long as you can consistently pay bills on time and not use too much of your available credit limits on credit cards. On the other hand, damaging your score doesn’t take long. A single payment 30 days late can get you a bad score. As you can see, negative information is easier to earn than good, so it’s wise to have good credit management so you can avoid headaches.

If you have a student loan or have been an authorized user on a family member’s credit card, you will have a credit report and credit history, but you won’t have an instant score.

Credit scores are generated from the information in your credit reports. Once you have accumulated several months of on-time payments and your creditors have reported them to the three major credit bureaus you will begin to generate credit points.

Here are some tips to build credit faster.

Become an authorized user: If a friend or someone close to you has a credit card account with a high credit limit and a good credit history, ask them to add you as an authorized user. That adds the account to your credit reports, so your credit limit can help your utilization. It also benefits your payment history in a positive way.

Pay bills on time: Your history of paying bills on time is the most important scoring factor in the FICO and VantageScore credit scoring systems.

Use credit cards: Another way to build or rebuild your credit is with a secured credit card. This type of card is backed by a cash deposit; you pay it up front and the amount of the deposit is usually the same as your credit limit.

Leave a Reply

Your email address will not be published. Required fields are marked *

close slider

    Call Now Button