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How long does it take to build credit?

I just got my first credit card. how long will it take for me to build credit?

  • i want to get a car loan and i cant until i build credit. so how long will it take for me to build credit? i use my card to buy groceries and always pay it off and keep it less than 50% below my limit.

  • Answer:

    If you've been extended a credit card, then you've already begun to build your credit. Just continue to use it wisely and to pay it off regularly. Now, this may not entirely make sense, but you may be hurting yourself by never using more than 50% of your limit. That will make it appear that your limit is half of what it really is because only your maximum balance gets reported to the credit bureaus, not the actual limit. Next time you have a larger purchase to make...something that approaches your limit...and even if you have the cash for it, put it on your card anyway so that the larger amount gets reported. And then pay it all off as soon as the statement comes out.

Nicole Nixon at Yahoo! Answers Visit the source

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You have to use that new credit card for at least 6 months before it even begins to count in your FICO score. Even then, you won't have much of a score. It takes YEARS to build good credit. Even after 24 months of consistent, on time payment history, you may have a decent score but your history may be considered too limited (only one account) to qualify for a car loan without a co-signer. By the way, don't worry about your utilization percentage. As long as you don't carry balances, it really won't make much difference to your score or history. Paying the balance in full every month will even it all out.

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