No matter if you are recovering from financial distress or starting your financial career from scratch, you might be wondering about how long does it take to get good credit. While it is very true that you can never get a good credit score overnight you can establish one from scratch within a period of four to six months. Remember building good credit from scratch takes both discipline and patience. It isn’t something that would happen overnight, but still, there are a lot of things that can be done in order to speed up the process while making sure that your credit score doesn’t slip in the process. Here in this blog, we are going to learn about the fastest methods to build credit so that you can easily access the best terms on mortgages, credit cards, and all other financial products.
How Long Does It Take To Get Good Credit
The good news about how long does it take to get good credit is that it actually doesn’t take too much time to build up credit history especially if you are starting out from zero. According to Experian and TransUnion, it takes almost four to six months of regular credit related activity to calculate your credit score. Remember how thick your files become depends on how many credits or loans you have taken during this time and especially how often you are using your credit card.
Factors That Might Influence Credit Score
There are several types of factors that can disrupt your overall credit score. The first thing that you need to do is to identify all that you have left behind before actually focusing on improving your score. Here are some of the very common reasons that might be the cause of your lacking credit score.
- No credit history.
- Declaring bankruptcy.
- Using more than thirty percent of the overall credit limit.
- Applying for different credit lines in a short time period.
- Missed payments.
- Inaccuracies in a bank account.
- Late payments.
Best Ways To Get Good Credit Score
Here are some of the best ways in which you can increase your credit score:
- Try Paying All Your Credit Related Bills On Time: Remember timely bill payment of your credit card bills is the main key to the question of how long does it take to get good credit. Remember every time you don’t need to pay off the whole amount, but at least clear off the minimum due payment. It is also important to know that only one late payment might cause disruption in your overall credit score.
- Minimize All Your Hard Enquiries: Every time you apply for a new credit line, remember that your credit report is being pulled. This is termed a hard inquiry and it even hurts your credit line. If your actual goal is to see progress in your credit score, try minimizing or even eliminating your habit of applying for new credit cards. It is always a good idea to stop applying for lines of credit or store cards. Each time you are doing so, it directly hits your credit score.
- Review The Length Of Your Credit History: Most of the credit agencies out there love to see those accounts that are open for an extended time period and are responsibly managed since their inception. Now you can easily see the performance of your accounts by getting a copy of your credit report. This can be of great help in improving your score by easy elimination of your recent accounts. Remember to only close those accounts that are open for only a few years and keep those accounts that have the longest credit history.
- Always Use Your Credit Card Responsibly Every Month: Using only one credit card every month is a tried and tested method used by several consumers all across the globe. Try selecting only one card and use it for all the expenses that you would typically pay with a cash or debit card. Furthermore, make sure to pay off that one card every month. In order to improve your score, you need to have something that’s being reported every month and this procedure can happen anytime if you are having a balance on your account. With the help of this method, something is getting reported to the credit companies.
- Try Improving All Your Credit Utilization Ratio: In case you aren’t having the financial ability to pay off your credit card debts in order to keep it under a thirty percent ratio then all isn’t lost. Another great way is to ask for an increase in the credit limit. An increase in the overall credit limit can be of great help in getting a high credit score.
- Improving Debt-To-Income Ratio: Remember almost all the credit agencies in the US prefer watching their customers having a credit utilization ratio that is less than 30 percent. The credit utilization ratio is the total of all your previous outstanding debt and it is calculated as a percentage of all your combined credit limit. The fastest way to raise your credit score is by keeping your overall credit utilization low. In order to boost your credit score, try clearing off all your credit card debts.
Having a healthy credit score is very much needed in order to get financial security for the future especially if you have plans to obtain loans for purchasing a car or house. If you have any future plans to credit boost your account with the help of your house rents or utility bills you can always try us. We at Credit Rent Boost, generally work hand in hand with most of the tenants and landlords and report all the monthly payments to some of the major credit agencies of the US such as Equifax or TransUnion. In case you want to know more about our services and offerings or if you have any questions about anything please visit our website.