How long does it take to build credit?

Establishing a credit score can take at least six months, according to credit-scoring company FICO®. VantageScore®, another credit-scoring company, says it produces credit scores even sooner.

Timing can change based on many factors. But whether you’re building or building from scratch, one thing is constant: Excellent credit scores depend on responsible credit use.

What you’ll learn:

• Credit scores are calculated based on information from your credit reports.

• If you have no credit history, it may take a few months to get your first credit scores.

• If you have existing scores, the timing to improve credit scores depends on your starting score and your goal score.

• Paying bills on time every month, keeping your credit utilization low and maintaining a healthy credit mix can help you improve scores over time.

Credit-scoring companies use different credit-scoring models to calculate credit scores. This means people have more than one score. Some of the most-used credit scores come from VantageScore and FICO. 

Their credit scores are based on information from your credit reports, including:

• Payment history

• Current debt

• Credit utilization ratio

• Types of credit

• Number of lines of credit

• Age of your credit accounts

• New credit applications

FICO says “you need at least one account opened for six months or more and at least one account that is reporting to the credit bureaus for the last 6 months” to generate one of its scores. VantageScore says it takes even less time. 

If you’ve never had credit of any kind, there are several ways to begin building a credit history, including: 

• Being approved for a credit card for fair credit, such as a secured credit card or the Platinum Mastercard® from Capital One

• Becoming an authorized user on the credit card account of a trusted family member or friend 

• Getting a loan and consistently making payments on time

If you don’t have a credit score at all, there may be a few reasons why. Perhaps you’re new to credit, haven’t used credit in more than two years or only have foreign credit accounts that don’t count toward your U.S. credit scores.

How long it takes to improve your credit scores depends on where you’re starting and how you got there. Going from poor to excellent credit scores may take longer than if you’re starting with new credit or good credit scores.

Building credit from scratch may take less time than rebuilding credit. Recovering from a few recent hard credit inquiries might not take as long as working back from late payments, which may stay on your credit reports for years.

Credit score changes aren’t instantaneous. That’s because your credit scores measure your credit activity over time. When lenders check your credit reports and credit scores, they’re looking for signs that you consistently manage debt responsibly. 

Paying all your credit card bills on time for one month can be good for your scores. But paying on time over months or years can have an even bigger positive impact. And if you develop good credit habits now, the negative impacts could diminish over time.

If you’re looking for a quick fix, the Consumer Financial Protection Bureau (CFPB) says to beware of credit repair scams. Improving credit takes responsible use over time. There may not be quick fixes, but the agency offers tips to get started:

• Make on-time payments every month. You can set up automatic payments or electronic reminders to help you remember due dates and avoid missed payments.

• Stay well below your credit limit. If you have credit cards, the agency says not to spend more than 30% of your available credit across all your accounts.

• Increase your length of credit history. Part of what determines your credit scores is how long you’ve had credit. Keep that in mind if you’re considering closing a credit card. 

• Apply only for credit you need. Applying for multiple credit accounts in a short period could signal to lenders that your financial situation has changed for the worse.

• Check your credit reports. Your credit scores are based on the information in your credit reports. Any errors on these reports could affect your credit, so it’s important to monitor your credit regularly. You can get free credit reports from each major credit bureau by visiting AnnualCreditReport.com.

• Expand your credit file. If you have thin credit, you could investigate whether self-reporting is an option. The term is a little misleading, because it requires help from third parties. But the idea is to update your credit reports with information that isn’t typically included. This alternative data could include payments for rent, utilities and cellphones.

It takes time and responsible use to build good credit, whether you’re starting from scratch or building on existing scores. If you’re trying to build credit, FICO says “you’ll likely need your own credit card account.” 

If you’re new to credit or searching for your next credit card, Capital One can help: 

• See if you’re pre-approved for credit cards without harming your credit scores. 

• If you’re looking to build your credit with responsible use, explore cards for people with fair credit. 

• Earn unlimited 1.5% cash back on every purchase, every day with a cash back rewards card. 

• Monitor your credit report and score with CreditWise from Capital One. It’s free for everyone, and using it won’t hurt your credit.