Establishing Credit Scores, how long it takes.

Establishing a credit score is closer than you think. Whether you are new to the country, or young trying to establish credit, I will discuss in this article exactly how long it takes. I will also discuss what it takes to establish credit scores. What has worked in the past no longer works with the new Credit Scoring process. The reason for this is it was changed this year with Fair Isaac whom is the originator of the FICO score model. This FICO score model is what 80% of the largest banks currently use to determine your creditworthiness. Here is the first step in establishing a healthy credit score.

Secured Credit Cards
In the past your parents could have put you on their credit card account as a authorized user. Once they did this the credit card would start reporting to all 3 credit bureaus on your behalf. This would immediately start the credit score building process for you. According to Fair Isaac this is no longer the case. Due to fraudulent activity in the credit repairing industry they stop the positive credit building with this process in their FICO score model. So with this being said, you have to take other measures when you don’t have any credit. This measure is secured credit cards. A secured credit card is where you secure the line of credit with a bank, usually a cost to you around $200 to $300 dollars. This money is put into an account with the secured credit card bank. Once you put money into the account designated by the card company, you instantly start the credit score building process. There is not a quicker way to build credit in today’s credit world, unless you are college student. Then you can apply for a student credit card. These cards are usually easy to get for individuals that are currently in college.

Credit Scoring Time Frame
The time frame to establish credit scores with the 3 credit bureaus is usually around 6 months. Once you have secured a couple of secured credit cards, you can expect to get a credit score as long as you are not late on monthly payments in 6 months. It is very important to make sure you are never late on any obligations that reports to all 3 credit bureaus. If you are late, you can expect a 100 to 150 point drop in your credit scores. So you definitely don’t want to have any late payments period.




Car loans
Auto loans are a great way to establish credit as well. Maybe once you have got a secured credit card or two going, I would recommend getting a car loan as well. This will give you a mix of credit for long term credit score growth. Getting a car loan is not as easy as getting a secured credit card, but you should be able to get a car loan after you have established some secured credit with some payment history.

With credit tightening up all over the board, the best advice I can give is to make sure you pay everything on-time and don’t over extend yourself. This is a common problem, and it can sneak up on you very quickly. Be responsible and live your life well.


About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness