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How Long Does It Take To Build Credit - What You Need to Know

It’s no secret that credit is one of the most important assets a person has. Without it, you won’t be able to buy a car, rent an apartment, or even borrow money. However, not everyone knows how long it takes to build credit. In order to get started in building credit, you need to know the following:

- Your credit score

- How many credit products you have

- What kind of interest rates you will be paying on your products

- The length of time it will take to get your credit score up to a “good” status.



What You Need To Know About Credit

A credit score is a measure of your ability to repay debts. While credit reports are often used by lenders, they can be useful for consumers as well. A credit report is your credit history and often includes information about whether you have been charged a high amount of interest or arrears on your debt.

The FICO® Score is one of the most widely used scores in the industry and is used by a wide range of lenders and other companies to evaluate their customers’ ability to repay financial obligations.

It was created in 1996 by Fair Isaac Corporation (FICO) as an alternative to the widely-used TransUnion® Credit Score, which was developed in 1985 by TransUnion Incorporated (TransUnion). The FICO® Score has since been adopted and improved upon by many other companies including Experian®.


How Long Does It Take To Get Your Credit Score Up To A “Good” Status

When it comes to credit, our credit score is the number one indicator of how likely we are to get a loan or a job. It’s how much money you could use in a day.

Your credit scores vary from person to person, so it’s important to keep track of your own credit scores and know what steps you should take when looking for a loan.

The first step is to check out your credit report each month. You can learn more about the complete process here: https://www.annualcreditreport.com

To achieve good credit, you need to have at least 3 positive items on your report and 2 negative items. A “good” credit score has 5 positive items with 3 negative ones and 10 negative items with 1 positive one. The two main pieces of information that contribute to your score are your payment history and lifestyle habits (such as if you have too much debt).



What Interest Rates You Will Be Paid On Your Credit Products

Interest rates on credit products vary from one product to another. Some rates will be higher than others, and some products will have different interest rates for the same amount of time. In order to get a sense of what interest rates you can expect on your products, we'll look at the following:

- What credit products you have

- The length of time it will take to get your credit score up to a “good” status

- What type of interest rate you can expect on your credit products

Length of Time It Will Take To Get Your Credit Score Up To A “Good” Status.

The next thing you should know is how long it will take to get your credit score up to a “good” status.

Your credit score is primarily based on information gathered from the three major credit bureaus: Equifax, Experian and TransUnion. This information is used by lenders to determine an applicant’s credit worthiness.

Getting your credit score up to a “good” status takes about nine weeks on average for each new account you open. For example, if you have an existing account with a current balance of $5,000, the process will take about eighteen weeks for one new opening. That would mean that, on average, it will take eighteen weeks to get all your accounts “good” with the three major credit bureaus.

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