It will take about six months of credit activity to establish enough history for a FICO credit score, which is used in 90% of lending decisions. 1 FICO credit scores range from 300 to 850, and a score of over 700 is considered a good credit score. Scores over 800 are considered excellent.
The good news is that it doesn't take too long to build up your credit history if you're starting from zero. According to Experian, one of the major credit bureaus, it takes between three and six months of regular credit activity for your file to become thick enough that a credit score can be calculated.
Building a credit score from scratch can take anywhere from a month or two to six months, depending on the type of credit score you are looking at. The two main credit scoring systems vary on how soon they'll show a score.
Kikoff is a licensed lender that says it is committed to offering “equality in financial opportunity” by helping people build credit. The lender reports to two major credit bureaus, Equifax and Experian.
Depending on where you're starting from, It can take several years or more to build an 800 credit score. You need to have a few years of only positive payment history and a good mix of credit accounts showing you have experience managing different types of credit cards and loans.
It will take about six months of credit activity to establish enough history for a FICO credit score, which is used in 90% of lending decisions. 1 FICO credit scores range from 300 to 850, and a score of over 700 is considered a good credit score. Scores over 800 are considered excellent.
Still, it is possible to establish excellent credit — a score of 800 or higher, for example — in your 20s.
The average mortgage loan amount for consumers with Exceptional credit scores is $208,977. People with FICO® Scores of 800 have an average auto-loan debt of $18,764.
Things become even more complicated when you learn that, even with a perfect payment history for the first six months of your credit report, you're probably only going to have a credit score around 500.
Building Credit Takes Time
By doing the right things, you should notice your score creeping up within a month or two. And if you started with a poor score and made drastic improvements, an increase of 110 points within 6 months is totally possibly. Most importantly, remember to use your credit wisely.
The amount of time it takes to go from a 700 to 800 credit score could take as little as a few months to several years.
It's recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won't be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly payments.
The average consumer saw their FICO Score 8 increase by 12 points using Experian Boost, according to Experian.
You can generally expect your credit score to update at least once a month, but it can be more frequently if you have multiple financial products. Each time any one of your creditors sends information to any of the three main credit bureaus — Experian, Equifax and TransUnion — your score may refresh.
A credit score of 900 is either not possible or not very relevant. ... On the standard 300-850 range used by FICO and VantageScore, a credit score of 800+ is considered “perfect.” That's because higher scores won't really save you any money.
A 784 credit score is Very Good, but it can be even better. If you can elevate your score into the Exceptional range (800-850), you could become eligible for the very best lending terms, including the lowest interest rates and fees, and the most enticing credit-card rewards programs.
What Credit Score Do I Need to Get a Good Deal on a Car? To get an auto loan without a high interest rate, our research shows you'll want a credit score of 700 or above on the 300- to 850-point scale. That's considered prime credit, and lenders don't have to price much risk into their rates.