Establishing credit?

Question

i have been doing research on how to start building credit and have moslty found similar information on the topic. One question i have not seem to find is the range in with your credit score would go to after making all your payments on time from a time range for 6 to 18 month will your score increase to 700??

Answer 1

Credit scores use more than payment history when being calculated, so there is no one answer to that question.  Some of the things involved are your balance to limit ratio, overall balances, inquiries, etc.  Since all these factors go in to your credit score, you could pay all your bills on time, but have had so many inquiries that your score falls.

Answer 2

I don't know how they adjust the credit scores to specific figures.  However, if you make purchases on credit cards and  you pay them off onor before the time due and in the amounts required as minimum or more, then your credit will be built up.  it is best to pay off the credit each month, but to make purchases and pay them off.  You can charge groceries and put money back and pay them each month.  You can get sotre credit cards as they are easier to get but be sure to pay them back and not purchase more than you can afford to pay cash for.

Your credit would be fairly good once you have it established by paying on time.  Then you just do not want to negatively impact it by not paying on time.

If you can't pay off, be sure to pay the minimum amount and pay more than the finance charge.

Answer 3

It depends what your credit score is to start with. If your score is 650 it might be possible to raise it to 700 within 18 months, however if it is below 650 then there are other problems that have nothing to do with paying bills on time and you should look into that.

Ways to improve your credit are as follows:

-Don't take on too many credit cards at once

-Pay all of your bills on time

-Try to limit inquiries on your file as this may make lenders think you are trying to over extend yourself

Things that make your credit score go up

-A good cushion of available credit between your current balance and available credit limits (This shows lenders you are unlikely to overextend yourself)

-At least 2 or more open major credit cards (VISA, Mastercard, Discover, etc.)

-No negative public records such as bankruptcy

Things that can lower your score

-Having accounts that have been open for less than two years

-One or more payments late by 30 days or more

-Low credit limits (credit lenders may not think you have enough experience with high limits)

-Each time a potential landlord or credit lender pulls your credit file an inquiry is placed on it. The more of these that you have the worse off your credit score will be. Inquiries stay on your report up to 2 years.

Keep this information in mind. Check your credit report on freecreditreport.com. That's how I check my score. You have a 14 day free trial and you can see everything on your report and even print it out. Just make sure you cancel before the trial period ends or you will be charged 14.95. Good luck! Hope this helped!

PS- During your free trial you can pull up your credit report as many times as you want. These are called "soft" inquiries and do not affect your credit score.