How fast you can build credit depends on where you’re starting (for example, starting from scratch or working to improve a damaged score) and your ability to maintain smart credit habits consistently. New credit (10%), meaning the number of credit accounts you have recently openedįICO® Scores and another standard scoring model, the VantageScore, have credit score ranges from 300 to 850.Credit mix (10%): the mix of different types of credit accounts you have.Length of credit history (15%): how long you’ve been building credit.Amounts owed (30%): how much available credit you’re using.Payment history (35%): your history of paying bills on time or not.Most lenders use your FICO® Score, which is based on five key factors ¹ : That’s why getting approval for new accounts is more challenging as a first-time credit user. If you have no credit history to show, lenders can’t anticipate your ability to use credit responsibly and pay your bills on time. Your credit score is what lenders look at to determine how dependable of a borrower you may be, and your payment history is often the first thing they check (it’s the largest factor in your credit score). Once you know how credit scores are calculated, it’s easier to grasp why building your first credit score can take around six months (and if you’re rebuilding your credit, it may take longer).
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