How Long Does It Take to Build Credit? | Capital One (2024)

April 9, 2024 |6 min read

    Building credit can be important to your financial health, but it doesn’t happen overnight. And even once you’ve built your way to better scores, you’ll need to show responsible credit use to maintain them.

    So how long does it take to build a credit history? The short answer is that it depends on several factors. But there’s information that can help give you a better idea of the timing.

    Key takeaways

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

    • Paying on time every month, keeping your credit utilization low and having a mix of different credit can help build your scores over time.

    • If you have little or no credit history, it may take three to six months of credit activity to get your first credit scores.

    How are credit scores calculated?

    Credit-scoring companies use different credit-scoring models to calculate credit scores. This means people have more than one score out there. According to the Consumer Financial Protection Bureau (CFPB), some of the most commonly used credit scores come from VantageScore® and FICO®. And their credit scores are based on information from your credit reports.

    But what information is actually used to calculate your scores? Here are some of the factors that affect credit scores, according to the CFPB:

    • Payment history

    • Current debt

    • Credit utilization ratio

    • Types of credit

    • Number of lines of credit

    • Age of your credit accounts

    • New credit applications

    How long does it take to build credit from 0?

    It generally takes three to six months to get your first credit score, although the time it takes to build good credit is different for everyone. It depends on factors like what your credit scores are now, how you’re managing debt and more.

    If you’ve never had credit of any kind, there are several ways you can begin to build a credit history. This could include:

    • Applying or being approved for a credit card for fair credit, such as a secured credit card

    • Becoming an authorized user on another cardholder’s account

    • Getting a loan

    FICO says it can calculate scores for borrowers who’ve had an account open for six months. It may take even less time to get a VantageScore.

    Why don’t I have a credit score?

    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 does it take to get a credit score?

    According to Experian®, one of the three major credit bureaus in the U.S., “You typically need three to six months of credit activity recorded there before a score can be created.”

    How long does it take to improve your 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.

    For example, 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.

    Why does it take so long to fix credit?

    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.

    For instance, 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 on your scores. And that can help lenders better predict how you’ll manage debt.

    The good news: If you start developing good credit habits now, the negative impacts to your credit scores may begin to diminish over time.

    How to improve your credit scores

    There are steps you can take right away to help improve your credit. Here are five things the CFPB says can help boost your scores:

    • 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, try not to spend more than 30% of your credit limit across all of 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 check them regularly. You can get free credit reports from each of the major credit bureaus by visiting AnnualCreditReport.com.

    How to build credit fast

    You may find yourself looking for the fastest ways to build your credit, particularly if you’re facing a poor credit score. While improving credit takes responsible use over time, there are also some things you can do to get started.

    • Round out your credit file. If you have thin credit—with few or no credit accounts—you could report rent and utilities, as well as cellphone and even streaming service payments with a tool like Experian Boost. You can also link your bank accounts with UltraFICO®. When factored into your credit scores, this data can show your financial responsibility.

    • Check on revolving credit balances. Late payments and a high credit utilization ratio carry a lot of weight in your credit scores. Catching up on late credit card bills and other revolving credit balances can help your scores and prevent further damage.

    • Limit new credit line applications. With every credit application comes a new hard inquiry, which can decrease your credit scores in the short term. A new line of credit also lowers the average age of your credit history, another credit-scoring factor.

    There’s no guarantee of achieving certain credit scores in a set time—it depends on your personal financial situation. If you have credit scores in the upper 600s, for example, you may have a better shot at improving your scores quickly than someone with credit scores of 500 or lower.

    Building good credit takes time and responsible use, and talking to a financial adviser may help. The Federal Trade Commission (FTC) cautions against credit repair scams “falsely claiming that they will remove negative information from consumers’ credit reports even if that information is accurate.”

    How fast you can build credit in a nutshell

    How quickly you can build credit depends on many factors. It takes time and responsible use to build good credit, whether you’re starting from scratch or rebuilding after a financial setback. But the good news is that it’s possible. And, once you build up your credit scores, staying on top of monthly payments and other financial details can help you keep your scores high.

    As you work on building your credit, you may want to regularly monitor your progress. One way to do that is with CreditWise from Capital One. CreditWise is a tool that allows you to monitor your VantageScore 3.0 credit score and get your free TransUnion credit report. Using CreditWise won’t hurt your scores. Plus, it’s free for everyone, whether or not you have a Capital One credit card or bank account.

    You can also get free copies of your credit reports from all three credit bureaus at AnnualCreditReport.com.

    How Long Does It Take to Build Credit? | Capital One (2024)

    FAQs

    How Long Does It Take to Build Credit? | Capital One? ›

    Paying on time every month, keeping your credit utilization low and having a mix of different credit can help build your scores over time. If you have little or no credit history, it may take three to six months of credit activity to get your first credit scores.

    Does Capital One build credit fast? ›

    You'll build credit the fastest by keeping the balance low on your Capital One card and paying off the full balance each month. Be aware that Capital One cards can also hurt your credit if you miss a due date or max out your limit.

    How long does it take to build credit from 500 to 700? ›

    The time it takes to raise your credit score from 500 to 700 can vary widely depending on your individual financial situation. On average, it may take anywhere from 12 to 24 months of responsible credit management, including timely payments and reducing debt, to see a significant improvement in your credit score.

    How long does it take for credit to become available in Capital One? ›

    See when your available credit will reflect your payment

    Submitting your payment may not immediately free up more credit. However, payments are applied to your account the day they are processed, and generally the funds will be available once the payment posts to your account.

    How to get a 720 credit score in 6 months? ›

    To improve your credit score to 720 in six months, follow these steps:
    1. Review your credit report to dispute errors and identify areas for improvement.
    2. Make all payments on time and avoid applying for new credit.
    3. Lower your utilization ratio by paying down balances, increasing credit limits, or consolidating your debt.
    Jan 18, 2024

    How fast does Capital One increase credit? ›

    Cardholders in good standing (e.g. good credit score, consistent on-time payments) may also receive an automatic credit limit increase once or twice a year. If requesting an increase from Capital One, approval can happen immediately or could take up to 30 days to process.

    How much of a $500 credit limit should I use? ›

    You should use less than 30% of a $500 credit card limit each month in order to avoid damage to your credit score. Having a balance of $150 or less when your monthly statement closes will show that you are responsible about keeping your credit utilization low.

    Is 650 a good credit score? ›

    As someone with a 650 credit score, you are firmly in the “fair” territory of credit. You can usually qualify for financial products like a mortgage or car loan, but you will likely pay higher interest rates than someone with a better credit score. The "good" credit range starts at 690.

    Why did my credit score go from 524 to 0? ›

    Credit scores can drop due to a variety of reasons, including late or missed payments, changes to your credit utilization rate, a change in your credit mix, closing older accounts (which may shorten your length of credit history overall), or applying for new credit accounts.

    Is 700 a good credit score to buy a house? ›

    Yes. Assuming the rest of your finances are solid, a credit score of 700 should qualify you for all major loan programs: conventional, FHA, VA and USDA loans all have lower minimum requirements, and even jumbo loans require a 700 score at minimum.

    How fast does Capital One approve? ›

    We will notify you in writing of our decision within 7 to 10 days of your application.

    Is Capital One hard to get approved? ›

    Your approval odds for the Capital One Venture X Card are best if your credit score is 740 or higher. Keep in mind, that other factors go into your application as well, including your income and relationship with Capital One.

    How much credit Capital One gives? ›

    There is no general starting credit limit for Capital One credit cards. Your credit limit will be based on your creditworthiness once your application has been approved.

    How rare is a 720 credit score? ›

    Who Has a 720 Credit Score?
    Credit ScoreTierPercentage of Americans
    720 – 850Excellent38.12%
    660 – 719Good17.33%
    620 – 659Fair/Limited13.47%
    300 – 619Bad31.08%

    How to immediately boost credit score? ›

    4 tips to boost your credit score fast
    1. Pay down your revolving credit balances. If you have the funds to pay more than your minimum payment each month, you should do so. ...
    2. Increase your credit limit. ...
    3. Check your credit report for errors. ...
    4. Ask to have negative entries that are paid off removed from your credit report.

    What credit score is needed to buy a car? ›

    The credit score required and other eligibility factors for buying a car vary by lender and loan terms. Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 69% of retail vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian.

    What credit score do you start with Capital One? ›

    Bottom Line. If your FICO or VantageScore credit score is approximately 670 or higher, you have a history of on-time payments for at least the last year and you haven't declared bankruptcy or defaulted on a loan within five years, you have very good odds of being approved for at least one of Capital One's Venture cards ...

    How to raise your credit score 200 points in 30 days? ›

    How to Raise Your Credit Score by 200 Points
    1. Get More Credit Accounts.
    2. Pay Down High Credit Card Balances.
    3. Always Make On-Time Payments.
    4. Keep the Accounts that You Already Have.
    5. Dispute Incorrect Items on Your Credit Report.

    What credit card helps build credit the fastest? ›

    Best credit cards for building credit comparison chart
    Credit CardBest for
    Capital One Platinum Secured Credit CardLow security deposit
    Capital One QuicksilverOne Cash Rewards Credit CardFair credit
    First Progress Platinum Elite Mastercard® Secured Credit CardFast processing
    OpenSky® Secured Visa® Credit CardNo credit check
    4 more rows

    How fast does Capital One report to credit bureaus? ›

    Our data suggests that Capital One reports to all three major credit bureaus once per month—typically at the same time as a cardmember's monthly billing statement is issued. Your credit report may reflect changes immediately in some cases. In others, changes may take more than a month to appear on a report.

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