How Long Does It Take To Get Good Credit Score?

It is crucial to know how long it takes to develop a good credit score when beginning the process of establishing credit. This answer depends on the starting point as well as the credit-building process that has been put in place. Potential credit is a very important thing and with little effort and proper handling of credit, most people can be able to transform themselves from bad credit to good or even excellent credit within two years.

It is clear then that the starting point indeed plays a crucial role in the overall process.

Your current scores and the history that you possess when starting the process of improving your scores play an important role in how long it is going to take. The good news for those who have no Credit History will normally be in a position to create a favorable score quicker than those who have poor Credit History due to bad records on their reports.

Thus, if you are a beginner with a new credit file, it is possible to raise your credit score and become a holder of good credit in six to twelve months. Opening your first credit card or loan and ensuring that you make all your payments on time from the initial time will help in a fast establishment of your credibility as a good credit risk taker. Credit builders such as opening a secured card, becoming an authorized user, or taking out a credit building loan can help establish a positive credit history in the first instance.

If you already have fair credit scores above 500 or a little above 600, it may take you 6 to 18 months to achieve good credit if you ensure that you are not making any late payments, reduce your credit utilization, and make sure that the credit age is longer.

For those whose scores dropped due to nonpayment, or issues with the collections account, it may take almost 18 months up to 3 years to rebuild a good credit. To create positive information that will neutralize the effects of the previous adversities takes some effort. Disputing errors or managing collections and paying off balances can help to slowly bring up poor scores.

Guidelines on Building Good Credit Score

A FICO score of 690 and above is often regarded as acceptable credit. If a given applicant has VantageScores between 661 and 780, then it is considered to be in the good range.

To reach those levels, follow these tips for responsibly managing credit and loans:

• Pay all loan and credit bills as agreed every month on or before the due date. I agree with the author that payment history contributes most to the scores. It is recommended to use autopay or have reminders turned on so that there is no forgetting the due dates that result in late charges and credit reports.
• One of the best ways of maintaining good credit is to ensure that balances on credit cards are kept low. It is also important not to carry total balances of more than 30% percent of the credit limits as this also lowers scores. Begins paying credit cards before they report high statement balances.
• Sustain credit applications at a low level. Each application can lead to a hard inquiry, which can temporarily reduce the scores slightly. I have to apply only in cases when the accounts are needed once a credit holder has developed a positive credit history.
• Learn how to correct the errors that are reported by reporters and media houses. It reduces scores when there are errors or the information is passed is outdated. If any of these issues arise, it’s important to use the dispute process to rectify them.
• Permit account balances to remain. There are significant differences between the FICO and VantageScore formulas, however, they both prefer longer positive history. It is wise to keep your old accounts open so that they can be used again in the future.

CONCLUSION-How Different Scores Get to Good

The most popular credit scores - FICO and VantageScore - use different models and scales, but have similar definitions of what makes a good score:

FICO 8

• Good: 690-719
• Excellent: 750-850

VantageScore 3. 0

• Good: 661-780
• Excellent: 781-850

As for the ranges, it may be different in different versions of FICO, but scores above 690 are considered good and excellent credit begins with 750.

Keep Building Beyond Good

A good first credit score is something to be proud of; however, maintaining a positive credit record will work you up to an excellent credit rating. It may change each month and, therefore, it is beneficial to have a positive history as long as possible. Good credit standings make you eligible for the lowest interest rates and flexible terms when you need to borrow money.

As long as one is consistent in establishing new good payment records and refraining from having high credit utilization and new accounts, a person can attain credit scores of 700 and above within two years despite prior credit misdeeds. To view your progress you need to monitor your reports and scores. There is a positive credit outlook, and good scores point toward the way of attaining excellent credit scores.

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