Earning a good credit score is about consistently showing that you handle debt responsibly. This means borrowing reasonable amounts, paying your bills on time, and not taking on too many debts too soon. Good credit scores are rewarded with loan approvals and lower interest rates (so it costs you less to borrow money).
Building a good enough credit score to qualify for a credit card, apartment rental, auto loan, or home loan requires a little time and patience.
Learn more about what it takes to build good enough credit to qualify for different loan types and credit lines. This will give you the info you need to set an achievable credit score goal and actionable tips for how to reach it.
How credit scores work
There are different credit scoring models (like the FICO Score, for example), but they work similarly. You're usually scored on a scale from 300 to 850 like this:
- Poor: 300–579
- Fair: 580–669
- Good: 670–739
- Very Good: 740–799
- Excellent: 800–850
Your credit score is based on five factors:
- Payment history: Your track record of paying your bills (late payments will drag your score down)
- Amounts owed: How much you owe, especially compared to how much you're authorized to borrow (this is called your credit utilization ratio)
- Length of history: How long your accounts have been open, on average (the longer, the better)
- Credit mix: The mix of credit cards, utility bills, installment loans, and mortgages that you hold (different types of debt show your ability to responsibly handle different situations)
- New credit: Recently-opened accounts (which temporarily bring your score down)
Of these, payment history is the most important factor, accounting for 35% of your score. Amounts owed counts for 30%, and length of history counts for 15%. The remaining two factors account for 10% each.
Factors that impact credit building timelines
The five factors that influence your credit score dictate the factors that impact credit-building timelines, including:
- Payment history consistency. You need to make on-time payments consistently over months or years to establish a strong payment history.
- Credit utilization ratio. Keeping your credit card balances well below your credit limits helps improve your score over time.
- Length of credit history. The longer you maintain open accounts, the better your score could be.
- New credit accounts. Each time you open a new credit account, your score may dip slightly. Too many new accounts at once can slow progress.
- Credit mix. A diverse mix of credit types helps build credit, but it takes time to accumulate them responsibly.
- Negative marks. Late payments, collections, bankruptcies, and other negative marks can stay on your report for years, slowing credit score improvement.
- Hard inquiries. Most applications for new credit require a "hard inquiry" into your credit history, which can knock a few points off your score.
General timelines for building credit
With so many factors going into building a good credit score, there is no definitive answer for how long the process takes. However, some estimates can be made based on general information from the three major credit bureaus (Experian, Equifax, and TransUnion), which track credit histories.
How long it takes to establish a credit score
The Vantage credit score model can provide you with a credit score as little as one month after opening your first account. For the FICO Score model, you'll need to wait at least six months after opening your first account. But remember, this just gets you on the board. You need to work up from there.
How long it takes to build a fair credit score (580-669)
After establishing your initial credit score, reaching a fair credit rating may take an additional three to six months of responsible credit use. Remember, any late payments or missed payments will set you back.
How long it takes to build a good credit score (670-739)
Generally, building a good credit score requires consistent on-time payments, maintaining low credit utilization, and a mix of credit types for a full year or two.
How long it takes to build a very good credit score (740-799)
Building a very good credit score may require two to four years of on-time payments, low utilization, and slowly diversifying your credit mix.
How long it takes to build an excellent credit score (800+)
Earning an excellent credit score can take several years of diligent credit management. You need to have a long history of on-time payments, a low credit utilization ratio, diverse credit account types, and minimal new accounts and/or hard inquiries.
Credit score requirements for different application types
How long might it take to get good enough credit to qualify for a credit card? Or rent an apartment? To answer these questions (and more) we need to explore the credit score requirements for these different application types.
How long does it take to build good enough credit to qualify for a phone plan?
Credit score requirements for phone plans vary by provider, but many providers like to see a score of at least 580. This could take three to six months if you've just established your credit record. Importantly, with a credit score in this range, you might need to put down a higher deposit for your phone plan. Additional deposit requirements might be dropped for those with good credit of 670+.
If your score is below 580, consider a pre-paid phone or month-to-month plan from select carriers.
How long does it take to build good enough credit to rent an apartment?
The credit score required for rental applications varies by location, property, and landlord/property management company. More expensive properties may require higher credit scores. In general, you need a credit score of 670+ to rent an apartment, so it may take a year or two to reach this point. However, you might qualify with a lower score if you can leave a higher deposit or get a co-signer to be responsible for the rent if you fail to pay it.
How long does it take to build good enough credit to qualify for a credit card?
The credit score required for a credit card varies by company, card type, and credit limit amount. Here are some general guidelines:
- Applicants with credit scores over 720 may qualify for premium rewards cards with benefits like cash back, travel perks, and lower interest rates. It might take you two to four years to reach this level.
- Applicants with scores of 670 to 719 may qualify for standard credit cards that may or may not offer rewards. It might take you a year or two to reach this level.
- Applicants with scores between 580 and 669 may qualify for basic credit cards, often with higher interest rates. You might qualify for a basic card in just three to six months.
If your score is below 580, a secured credit card can help you practice good financial habits while building your credit score. Secured credit cards use a refundable deposit to protect the lender. You place the deposit upfront, then use the card to borrow against the deposit. The lender reports your on-time payments to the credit bureaus to boost your score over time.
How long does it take to build good enough credit to qualify for an auto loan?
Auto loan lenders might work with any credit score, but lower credit scores will pay much higher interest rates, increasing the cost of the vehicle. If you can take a few years to boost your credit score, you can save a lot of money. If not, consider getting a co-signer to potentially bring down the interest rate.
How long does it take to build good enough credit to get approved for a home loan?
Credit score requirements for home loans vary by loan type, lender, and the borrower's full financial profile. Government-backed FHA loans require credit scores of at least 580 (although some lenders will work with scores as low as 500 for borrowers with a higher down payment). These loans can be acquired immediately if you have the money for a down payment. However, for a conventional loan, you may need a score of 670+, which could mean working on your score for a year or two.
How to speed up the credit-building process
Need to build good credit fast? Here are seven ways to speed up the process:
- Make all payments on time.
- Keep your credit card balances below 30% of your total credit limit (under 10% is even better).
- If a trusted family member or friend has a long credit history and good payment record, getting added to their credit card as an authorized user can boost your score quickly (no need to actually use the card).
- Open a credit builder loan to add an installment loan to your credit mix.
- Open a secured credit card to establish a new credit line.
- Keep credit accounts open even when the card is paid off to keep your length of history growing.
- Monitor your credit reports for errors that could impact your credit score. Any errors can be disputed with the credit bureaus.
Start building good credit today
Establishing a good credit score or improving a low credit score takes time, diligence, and consistency. Whether you're looking to qualify for a credit card, rent an apartment, or secure a home loan, understanding the credit-building process can help you set realistic goals and timelines.
Start building good credit today by applying for a credit builder loan or secured credit card or asking friends and family if you can be listed as an authorized user on their well-established credit cards. A little patience and persistence will carry you to excellent credit over time.
