Starting at zero, how long does it take to establish good credit in the U.S.?

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    Stilt Team (Edited )

    You can reach at a “good” status for credit cards pretty quickly. If you pay your cards on time follow basic principles of using credit effectively, you can get 700+ score in 2–3 years easily.

    But credit score is only a part of the risk assessment lenders use when they are dealing with credit products like personal loans, auto loans, mortgages, etc. Length of credit history is also a very important factor.

    To be actually “good” in credit, you need to consider 5 important things:

    1. Payment History - Based on a borrower’s payment history. This is the most important factor. Making regular payments on previous credit is very important. Try not to be late on your credit card and other credit payments.
    2. Credit Utilization - Make sure you don’t max out credit cards. It is important to maintain a good utilization rate (< 30% of your credit limits).
    3. Length of Credit History - It is important to show that you can consistently use credit responsibly that’s why you length of your oldest credit account is also matters.
    4. Credit Mix - Having different accounts and types credit accounts can show that you can manage different types of debts.
    5. New Credit - Low number of recent credit inquiries are important to show that you are not looking for credit all the time.

    You can score highly on multiple factors pretty quickly but length of credit history and credit mix may take time to build.

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    We take a holistic underwriting approach to determine your interest rates and make sure you get the lowest rate possible.

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