Home › Questions › Credit Building › how long does it take to build good credit?
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October 3, 2024 at 5:24 pm #1044
Kikoff
KeymasterOctober 3, 2024 at 5:40 pm #1071Kikoff
KeymasterThere isn’t a set timeframe for building good credit.
It can depend on many factors, like if you’re starting fresh, or looking to improve an existing credit score. Generally speaking, building credit takes time and consistency. It can take months or even years to build, so don’t get discouraged if you do not see immediate results.
- Building Credit from Scratch
If you’re just opening your first credit account, it will take at least 6 months of reporting to the credit bureaus for a FICO credit score to be generated. This score is used by lenders to determine if you’re someone who can reliably pay off credit on time. The older your accounts, and the longer you’ve managed credit responsibly, the better your score. A Vantage score, typically used for things like rental applications, may generate a score sooner.
- Improving Existing Credit
Typically, individuals who have existing credit that is fair or below can improve their score faster than those just starting or those with excellent credit. Once an individual consistently makes responsible credit decisions and pays on time, they may see results as quickly as a month, or for larger increases, over several months.
- Tips for Building Credit Faster
- Consistently pay off all lines of credit on time
- Keep your credit utilization rate low (use a low percentage of your total available credit)
- Keep your credit accounts open. Older accounts help improve your score
- Have a healthy mix of credit.
A Kikoff Credit Account can also help you build credit, whether you’re just starting or have established credit. You can sign up in minutes, and starting at $5 a month, you can build a credit history by using a $750 line of credit to use for Kikoff purchases. This doesn’t expire, so you can build credit on your schedule.
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