Building a good credit score from nothing can be a daunting task, but it's not impossible. With the right strategies and habits, you can go from having no credit to a 700 credit score in as little as three to six months. The amount of time it takes to go from a 700 to 800 credit score can vary greatly, depending on your financial habits and credit history. It may take anywhere from a few months to several years.
When you're just starting out, it may take up to two years for a thorough consultation to disappear from your credit report. As difficult queries are eliminated, your score may increase. Your score also increases the longer you've had credit. Every year you have your credit, your credit history gets longer, helping to improve your score. Based on FICO, the most popular credit scoring model, you can generate a credit score after six months of reported payment history.
However, the amount of time it will take you to get a good credit score of at least 670 depending on the FICO scoring model varies. Consumers who don't have extensive credit histories can still have high FICO scores if they adopt good credit habits, such as making timely payments and keeping the amount of money they borrow low. When making loan payments, the lender usually reports this information to the credit bureaus, which helps them build credit. Having no credit history means you're likely to struggle to qualify for a traditional loan or credit card without a co-signer. Whether you're just entering the world of credit and building from the ground up, or re-entering after a bankruptcy, building your credit from the bottom up takes time. Without a credit score, it will be nearly impossible to convince a credit card issuer to allow you to open a card. Receiving a lot of solid credit inquiries can also affect your score, so be sure to take advantage of flexible credit checks or to keep any loan request within 30 days. If the issuer communicates authorized user information to credit reporting agencies, it could reduce the time it takes to generate credit.
To increase your chances of achieving this goal more quickly, you'll need to open a credit account, such as a credit card. You're strengthening your credit history, giving banks and other lenders more information about your credit liability. For example, if you cancel a credit card, you might not see it reflected in your credit score until a month later. And having a small personal loan, in addition to a credit card, can be an effective way to build good credit from scratch. When you finally get a credit score and you have been approved for unsecured credit cards, you can get rid of your secured card and the bank will return your money to you. For the most important factors of credit rating, such as payment history and credit utilization, there aren't many quick solutions other than paying your debts diligently and on time every month. Building good credit is an achievable goal if you're willing to put in the effort and stay disciplined with your finances.
With patience and dedication, you can go from having no credit history at all to having an excellent 700+ score in just three to six months.