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Time it Takes to Build Credit Score in Niagara Falls

Time it Takes to Build Credit Score in Niagara Falls

Many finance websites and auto loan blogs will recommend building your credit before getting a car loan, but often don't explain the time it takes to build credit score. We know we do it and we’ll often suggest ways to do it.


But how long will it take? How long in advance to you need to plan in order to get a great deal on a car loan? Our Niagara Falls auto loans team explains the amount of time it takes to build credit score.


Building credit in Niagara Falls


The question of how long it takes to build credit depends on where you’re starting from.


Credit scores look a little like this:


  • 300 – 359 Very poor credit
  • 560 – 659 – Poor credit
  • 660 – 724 – Fair credit
  • 725 – 759 – Good credit
  • 760 – 900 – Excellent credit


If you have low or no credit, it will take longer to get to good or excellent credit than it would if you had poor credit.


If you had a score of 600 for example, it would take longer to get to excellent credit than it would to get from 700 to 760.


So, the exact timing will depend entirely on where you are now and how much effort you can afford to put into rebuilding your credit.


We can say with certainty that as soon as you begin building credit, your score will begin increasing within 3-6 months. On average, we would say that someone with poor credit could get into good or excellent range within 18-24 months if they worked at it.


How to build credit in Niagara Falls


We generally recommend a credit card to help you build credit. If you can qualify for a standard card, get one. If you need to get a secured credit card, get one of those instead.


Find a card with low charges and a relatively low interest rate. The rate is less important as we’ll be paying it off in full each month anyway.


Get a credit card


Get yourself a credit card, secured or otherwise and use it for everyday purchases. Don’t buy things you wouldn’t normally, fit it into your monthly household budget.


Pay it off in full each month but set up automatic payments for the minimum so you never miss a payment. This will help you build a payment history, which counts up to 35% of your credit score.


Get a credit builder loan or bad credit car loan


Once you have had the card for 6-12 months and have built a payment history, you can now consider using a credit builder loan or bad credit car loan to boost your efforts.


Don’t get a loan for the sake of it but if you’re planning a big purchase or need a new car, now would be a good time to do it. The loan will boost your payment history, increase your credit mix and contribute to building credit.


Set up automatic payments for that loan to ensure you never miss one and over time your credit score should rise.


Building credit is a long process that takes time and patience. With the right approach, anyone can rebuild from any score. Anything is possible when you put your mind to it!


Contact Unique Chrysler for help, advice and competitive Niagara Falls car finance and leasing.


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