How Long Does It Take to Build A Credit Score | Criteria To Follow

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Shivangi Gupta
Shivangi Gupta
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If you don’t have a positive credit history or creditworthiness, you have to face a tough time qualifying for a loan. Sometimes, people don’t get approved for funds without co-borrowers or co-signers. To get rid of this all, you should focus on credit building. In this article, my ultimate aim is to bring in information you need to know how long does it take to build a credit score to turn your dream of getting a home or car into reality.

The positive creditworthiness, the better chances to qualify for a low-interest rate loan that too within time. Creditworthiness or credit building means more and more lenders have confidence in you that you will pay back the money they lend you.

There will be two scenarios for knowing how long it takes to build a credit score. Someone has no credit means, no car loan, home loan, etc. On the other hand, someone with bad credit means terrible accounts. 

I will let you know how this affects you and how it can reverse from bad credit to good credit.

How Long Does it Take to Build a Credit Score in 2022?

How Long Does It Take to Build A Credit Score

To understand how long does it take to build a credit score, one has to follow six months of verified monthly payments, one can build a credit score using FICO, the most prominent credit scoring system.

However, the time it takes to create a decent credit score (at least 670 according to the FICO scoring methodology) differs.

People without significant creditworthiness can still have excellent FICO scores if they follow good credit habits such as making on-time payments and borrowing only a small amount of money.

Since you’re beginning from zero, it’ll probably take you up to 6 months to build a credit score. You’ll need to open a credit account, such as a credit card, to boost your chances of meeting your objective sooner. After that, you’ll have to show what you’ve learned.

Also, read How to Remove Personal Information From Credit Report | Must-Know Information

Factors Affecting Credit Score in 2022

Below is a list of some factors that can affect the credit score and hamper the chances of getting approved for a loan.

1. Payment History (35%)

How Long Does It Take to Build A Credit Score

To understand how long does it take to build a credit score, One of the essential aspects of determining that is your payment history. When approved for a loan, pay the installments on time to improve your credit history.

2. Amount Owed (30%)

How Long Does It Take to Build A Credit Score

Your credit score is also heavily influenced by the amount of money you take. If you’ve been qualified for a bank card, don’t use it to its maximum capacity. It’s best to keep your credit record (the amount of credit you use compared to the amount of credit you have) under 30% and will answer your question of how long it takes to build a credit score.

Also, read What is the Average Credit Card Debt in America in 2022?

3. Credit History Length (15%)

How Long Does It Take to Build A Credit Score

To get a bit closer to the question that how long does it take to build a credit score, you need to make sure that your old accounts are on average. Despite taking a significant credit score isn’t required for a good score, it can help it.

4. New Credit (10%)

How Long Does It Take to Build A Credit Score

For the sake of score development, don’t seek too many credit lines at once. There is a hard credit check for the new applications, which can lower the score by 5 points and you will always keep asking then how long does it take to build a credit score.

Also, read How To Get Home Loans With Bad Credit | 6 Home Loan Lenders

5. Credit Mix (10%)

How Long Does It Take to Build A Credit Score

Although owning several different credit lines, such as credit cards and various kinds of loans, can help you boost your score, it is not needed.

Top 4 Ways To Build A Credit Score In 2022

How Long Does It Take to Build A Credit Score

Changing a terrible credit score to a positive one is now possible with the help few techniques suggested below and are as under:

1. Open a Secured Credit Card

How Long Does It Take to Build A Credit Score

A secured credit card intends to assist users in establishing credit. However, it requires a security deposit and is easier to qualify for than a standard card. 

If you can’t pay your balance, the amount you put down serves as collateral, something of value that a provider can confiscate if you don’t meet your repayment obligations and helps establish your credit limit.

While looking for a secured credit card, check sure the issuer reports to Experian, Equifax, and TransUnion, the three major credit bureaus.

One should pay the credit card installment before the due date in total to add creditworthiness in the credit file.

Also, read How To Apply For A Loan With Bad Credit 2022

Paying on time in full will help build the creditworthiness and avoid the chances of penalties and increasing interest.

2. Become an Authorized User

How Long Does It Take to Build A Credit Score

A friend or family member with strong credit who already has the oldest credit card may be able to make you an authorized user.

Whereas if lender reports authorized user information to credit monitoring bureaus, you might be able to develop credit faster.

3. Seek a Credit Builder Loan

How Long Does It Take to Build A Credit Score

A credit-builder loan is a moderate, short-term payment loan intended to assist you in establishing credit. In that sense, it’s different from a regular loan.

A lender puts the loan amount into a secured savings account till it is paid, rather than giving you a single sum of cash to spend.

A lender will typically report your loan payments to the credit agencies when you make them, which will help you develop credit. 

The amounts which were put in the secured savings account are reimbursed to you once the loan term has ended, without any costs.

Also, read 5 Best Retail Credit Cards To Build Your Credit Score In 2022

4. Get a Loan with Co-Signer

How Long Does It Take to Build A Credit Score

Whenever you need a bank loan, try having a relative or friend co-sign for you if they have solid credit and a steady income. 

Explain to them when they decide to be a cosigner and explain that they’ll be liable for repaying the loan if they are unable to. 

Only take out a loan you can afford to repay to minimize your risks of defaulting and harming your credit.

Also, read How to Recover Your Credit Score from Late Payments In 2022!!

Wrapping Up

The overall mechanism to know how long does it take to build a credit score is to change your general spending habits first. The habits may include paying bills on time, monitoring the credit reports that banks provide from time to time, and applying for new credit sparingly. 

Moreover, lenders offer endless benefits to the borrowers if they come up with positive credit history or creditworthiness. 

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