How Long Does It Take To Build Credit?
July 5, 2021 | Emma Frost
It may take a while to build or rebuild your credit, so it's important to get started with clever tactics as soon as possible. Traditional banks usually won't lend money to consumers without high enough scores.
Meanwhile, life is too unpredictable not to have a backup plan. There are certain things you should know about credit and how to build it back up.
But how long does it take to build credit, and are there ways to make it happen faster? The answers to both of those questions may surprise you. Let's learn something new today, and then let's establish a little more hope for the future.
How Long Does It Take To Build Credit These Days?
In the past, it wasn't nearly as hard to establish a credit profile because the system was just being implemented. These days, however, it may be slightly harder to make a positive report happen. So, how long does it take to build credit in this decade? For most, it's about two years, sometimes more.
Most lenders want to see at least two years of clean, recurring credit activity before they'll move you from having "no credit" to an established profile. That profile is built through making timely, responsible transactions that require you to borrow large and/or small amounts of money. If you pay the money back on time, your scores will eventually go up.
The average person in the United States today has a credit score of about 710 but most traditional banks want applicants to have a score of 750 or better.
How Long Does It Take To Build Credit With A Bad History?
So, how long does it take to build credit after you've fudged up your history? That may take a little longer. It's because lenders want to see that you've learned from your mistakes, plus debts must be paid back in full before they're removed from your report. Older obligations carry more weight too, so it's best to take care of the ancient accounts first.
Try not to cancel any accounts that are over two years old because it may negatively affect your overall credit history. However, look for ways to reduce your debt to income ratio. That comparison can change the way lenders look at your applications even if your scores are relatively high otherwise. Also, beware of hard inquiries that can drop your scores even more.
A single hard inquiry placed on your credit profile at the wrong time can significantly reduce your rating for up to six months. Lenders see them as signs of financial desperation and are generally less likely to offer a loan under those circumstances.
How Do I Improve My Credit?
Improving your credit takes a lot of patience, work, and time – but it is possible. A great way to seriously improve your credit is by getting rid of your debt. Of course, that is much easier said than done – especially when an emergency hits and throws your finances off.
When an emergency does hit and you can’t handle it alone, you can turn to a title loan from Fast Auto Loans, Inc. to help out.
What Is A Title Loan?
A title loan is a type of secured loan that uses your vehicle's title as collateral for a lump sum of quick money. The good thing is you get to keep your vehicle while you are making loan repayments. We hold onto your title during the loan period – not the vehicle itself. Just make sure that your repayments follow the plan we come up with.
Plus, the application process is convenient and simple for anyone to complete. Just make sure the title is free of any outstanding liens or judgments and that it is in your name. If either of these two things is an issue, you will have to get that fixed prior to applying.
How Do I Use Title Loans To Help?
While a title loan could help you out, you should only look to getting one for specific situations/ If you plan on using it to repair your credit or permanently eliminate your debt, this isn’t the loan for that.
Title loans are short-term loans. This means that they won’t permanently fix your financial situation. They are designed to help out with emergency expenses like medical bills, sudden home repairs, or emergency travel. We do not report to credit agencies, so your loan will not directly affect your credit.
Of course, getting rid of your emergency expenses quicker with title loans could leave you more time to focus on getting rid of your other debt and improving your credit.
How To Get A Title Loan
Getting through our process here at Fast Auto Loans, Inc. is simple. Just follow our quick guide below to get a better idea of what to expect:
- Start the process online. Go to the Fast Auto Loans, Inc. website to fill out our online form. You can find it right at the front of our page and it’ll ask for some basic information. Once you are complete, the form will be sent to the nearest location where a loan representative can call you.
- Once you are off the phone with the loan representative, you can grab your driver’s license or ID, your lien-free title, and your vehicle to head to the appointment. The appointment can either be at the nearest store or we can come to you – either way, you have to have these items.
- Let the loan representative inspect your vehicle to determine how much you could get. They will also go over your information and assess your other items. Once they are finished, they will determine if you qualify for approval.
- If they determine you do qualify for approval, they will then go over our loan terms with you in detail. They can answer any questions you have and help you complete the simple paperwork. Once everything is done, you will either get your money the same day or the next bank business day.
Get Started On Building Your Credit, Today
Fixing your credit does take time and patience. But with the right tips, you could be on your way to actually improve your score. And if you run into emergency trouble, you can always come to Fast Auto Loans, Inc. for our title loans. Fill out the online form today to get started.