Why does it take time to build good credit?

The credit bureaus need to see a history of good financial behavior before assigning you a credit score. Credit history is a significant component of your credit score, and history takes time to build. Factors such as missed payments negatively impact scores. And it takes a lot more time to repair your credit than it does to build good credit in the first place. Be sure to pay your bill on time, first and foremost.

What is the fastest way to build good credit?

The fastest way to build good credit is strategically paying your credit cards. Pay them on time and pay at least the minimum due, if not more, every month. Credit-building products, such as credit-builder loans and secured credit cards, are a great way to start building a credit history if you don’t have one. But be sure not to over-apply for credit. The credit bureaus frown upon borrowers who take out credit card after credit card or loan after loan. Be mindful when applying for credit; don’t take more than you need.

How often does your credit score change?

Your credit score will typically update once a month, if not more. And it is not unusual for your credit score to go up or down a bit each month. A few points here or there are not something to worry about. But pay attention to giant leaps of ten or more points, as this usually indicates something significant has happened with your credit score. In most cases, this can mean a missed payment, a sizeable increase in your credit card or loan balance (decreases can trigger a score improvement), or you have recently taken out a new loan. The fact is that any new information, positive or negative, on your credit report can affect your credit score. 

What factors impact my credit score?

To acquire a good FICO credit score or to improve your credit score and build a favorable history, pay attention to the following:

  • Payment history = 35%
  • Amounts you owe = 30%
  • Length of your credit history = 15%
  • New credit you apply for = 10%
  • Type of credit you use = 10%

Paying your bill on time and controlling your balance-to-credit limit ratio are the most critical factors that impact your credit score.

About the Author

Ann Bloomquist

Ann Schreiber

Seasoned Copywriter & Content Marketer

Ann have been a marketer and a content writer for over 20 years. She have worked for financial institutions such as FICO, Experian, and BlueChip Financial as a director of content and brand marketing.

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