Build Credit: How Long Does It Take?


You must build credit to prove your financial trustworthiness. It affects all aspects of your financial life and controls how much money you can borrow, the rate of interest you will get when you do borrow, the type of job you can get, and even the houses you can rent. Credit looks at your entire financial history. The earlier you start to build credit, the better things will be for you because you’ll be able to take risks that can pay off later on in life.

It is virtually impossible to say how long it will take to build your credit, but in this review, we will give you some tips on how you can do this as quickly as possible. When you decide to start this project, follow the right procedures because any shortcuts are liable to land you in trouble in the future.


You will need to be patient, and create your credit report slowly, with the right credit decisions. Credit score refers to three digits that are used to sum up your credit history. There are many credit bureaus that provide people with their credit scores, but the most famous three are TransUnion, Equifax, and Experian. It is basically measured from 300-850. If your score is between 300-600, you are on the lower side and are likely to pay more in terms of interest rate, but if you have a score of 600-850, you are doing well.

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Here are some tips to help you build credit.

Get a secured credit card.

When building your credit from scratch, you need to start things off with something simple, and almost a guarantee – a secured credit card. This is a card that will require you to make a security deposit that is used as collateral. This deposit is the same value as your credit limit.

Credit card companies are more likely to approve secured credit cards to first-time borrowers because the deposit eliminates the element of risk in case of default.


Ensure to repay the card on or before the due date, in order to build a good credit history. Defaulting at this stage is detrimental to your progress.

You can also apply for retail store credit cards, which have less-strict requirements. They typically have low credit limits and very high-interest rates, but the fact that approval is almost guaranteed makes them the perfect first step towards building your credit. Just makes sure you do not go on a shopping spree and mess it all up.

Start with only one card.

Well, now that you know you can get a credit card, albeit a secured one, it doesn’t mean that you should go collecting cards. This will be a huge mistake. The more cards you have, the more willing you will be to use them, and the harder it will be for you to keep up with payments.

In the end, you might have a huge bill on your hands that you may not be able to pay up. It’s no secret that most Americans have been messed up by credit card debt, and seeing as you are just starting out, don’t be a part of the mess.

Applying for many credit cards within a short time will also lead to many credit inquiries, and these will hurt your credit score. It’s always advisable to first learn with just one, then with time, you can increase to more than one.

Get a builder credit loan or a secured loan.

A builder loan is used to help people build credit. The process is very simple. The bank will lend you money and hold it in one of their accounts until you repay the money in full. It is sort of a forced savings plan since the money you pay will be refunded in the end.

This repayment is then reported to the credit bureaus, who in turn create for you a credit report, clearly showing that you have been paying your loan on time. You can find these types of loans in a credit union or a community bank.

A secured loan can also help with your credit building project because these are loans that have already catered for themselves. You could use the deposit you have in the bank to take out this type of loan, or you can use any other type of security to get a loan. The interest rates may be high, but these loans go a long way in helping you create a credit history.

Use a co-signer.

This is just as it sounds. It is possible for you to qualify for a loan or a credit card when you can find someone of good credit standing to cosign for you on the application form.

A co-signer guarantees the lender that they will ensure the loan is repaid, and in case of any issues, they are responsible.

Finding someone to trust you enough to co-sign with you on a loan may be difficult, but if you have family members, friends, or even colleagues who can trust you, it can work perfectly.

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These tips are great when asking how long it takes to build credit, and it will become even easier for you when you are serious about the process.