Time It Takes to Build
Your Credit History

How long does it take to build your credit history?

If you have little or no credit and are considering financing a large purchase (e.g. house or car), you will need to establish a credit history in order to get a loan.

The main thing you must have is patience. It can take a while to build a credit history that will support those types of financing.

What is needed to form a credit history?

Sources say your credit score is comprised of:

• Payment history (35% of score)
• Amounts owed (30% of score)
• Length of credit history (15% of score)
• New credit/Recent credit acquisitions (10% of score)
• Types of credit used (10% of score)

When trying to establish a credit history, you cannot rush factors like length of credit history. However, recent payment history is given more weight than older history, so this score component is not as difficult to overcome.

It's a marathon, not a sprint

Lenders prefer to see longer credit histories so they can see consistency in your use of credit. Do not despair; if you properly utilize credit, you will build a solid credit history over a few years.