How Long Does It Take to Build Credit in the U.S.?

Building credit in the United States isn’t an overnight process, but with the right steps, you can start seeing progress as soon as within a few months. Regardless of whether you're building a brand new credit history or repairing yours after a financial emergency, creating a strong credit profile is one of the most important moves you can make toward long-term financial stability and peace of mind.

So how long does it take to build credit? The answer depends on your starting point, what credit-building methods you use and how consistent you are with responsible credit habits.

Let’s take a closer look at what affects your credit, how to start building it, and how to avoid common mistakes along the way.

Factors Affecting Credit Building

Your credit score basically serves as a reflection of how responsibly you manage borrowed money over time. Your score is calculated based on data reported to the three major credit bureaus – Experian, Equifax and TransUnion – from your active and past credit accounts. These credit reporting agencies use several categories to evaluate your financial behavior. Understanding these factors can help you take the right steps in your credit journey. Here they are:

Payment history

Your payment history carries the most weight in credit scoring models, accounting for about 35%^[1] of your FICO® score. It reflects whether you’ve made payments on time for credit cards, personal loans, mortgages, student loans and other financial obligations. 

Consistently making on time payments can help you build a positive payment history, which signals to lenders that you’re a low-risk borrower. In fact, establishing an on-time payment history may be the most important step you take in building a healthy credit score.

On the other hand, missed payments – especially if they’re 30 days late or more – can cause your credit score to dramatically drop. And these delinquencies can stay on your credit reports for up to seven years. If you’re working to establish credit, even one late payment can make a big difference, so setting up reminders or auto-pay is a smart move.

Credit utilization

Credit utilization – or your credit utilization ratio – measures how much of your available credit you're using compared to your total credit limits. For example, if your total credit limit across all cards is $5,000 and your combined credit card balances is $1,500, your utilization would be 30%^[2].

Keeping your credit utilization low, ideally under 30%, shows that you’re not relying too heavily on borrowing money and can responsibly manage debt. Using too much of your available credit can be a red flag to lenders and could lower your score. Paying off your balances in full each month and requesting a credit limit increase from your credit card issuer when you need it can help reduce your ratio and improve your score over time.

Length of credit history

The length of your credit history refers to how long your credit accounts have been active. This includes the age of your oldest account, the age of your newest account and the average age of all your accounts taken together.

A longer credit history gives credit scoring models more data to evaluate, which can work in your favor –especially if you’ve shown consistent, responsible credit use. Even if you're not actively using a credit card account, keeping it open can help maintain a longer average account age. Conversely, closing old accounts can shorten your credit history and potentially lower your score.

Types of credit used

Your credit mix refers to the different types of credit you’re managing at any given time. Scoring models look favorably on consumers who handle a wide variety of debt types, such as the following:

• Revolving credit, like credit cards or store cards
• Installment loans, such as auto loans, personal loans or a credit builder loan
  

Having both types of credit shows lenders that you can effectively juggle different forms of debt. While you don’t need every type of loan to build a good score, a balanced credit mix can contribute to a stronger credit profile, especially over the long term.

New credit accounts

Every time you apply for credit, whether for a secured credit card, a store card or a personal loan, a hard inquiry shows up on your credit report. While one or two inquiries may impact your score by only a few points, applying for several new credit accounts in a short period of time can be a red flag for financial instability and may temporarily cause your score to dip.

That said, all isn’t lost if you have a few credit inquiries on your report. These inquiries don’t stay on your credit reports forever – they generally age off within two years. Also – if you're shopping for a certain type of loan, many credit scoring models treat multiple inquiries for the same type of credit (like an auto loan) as one request, if they occur within a short time period.

Treatment of multiple inquiries depends on the scoring model and credit type; rate-shopping generally applies to certain loans (e.g., auto/mortgage) within a defined window, not typically to credit card applications.

Credit Score Basics

Understanding your credit score is key to building a good credit history. Here’s everything you need to know:

Understanding FICO scores

A FICO® score is a three-digit number that most lenders use to determine how likely you are to repay borrowed money. It’s one of the most widely used credit scores in the United States – used in over 90%^[3] of lending decisions – and plays a critical role in everything from credit card approval to securing mortgages and auto loans.

FICO scores range from 300 to 850, and the higher your score, the more favorably lenders will view your creditworthiness. This score is generated using information from your credit reports, which are maintained by the three major credit bureaus: Experian, Equifax, and TransUnion.

To generate your first credit score using the FICO model, you must have the following:

• At least one credit account that’s been open for a minimum of six months

• At least one account that has reported to a credit reporting agency within the past six months

This means that even if you’ve just opened a secured credit card or become an authorized user on a family member’s card, you won’t immediately be assigned a score. You’ll need to show a documented pattern of responsible credit use over several months before your score can be calculated.

Credit Score Ranges and Their Implications

FICO scores are grouped into distinct ranges, each with its own implications for credit approval and lending terms. Here's how the ranges break down:

• 800–850: Exceptional – Borrowers in this range have shown consistent good credit habits over a long period. They’re seen as extremely low-risk and typically get the best interest rates and credit offers.

• 740–799: Very Good – Consumers in this range demonstrate strong credit histories. They generally qualify for most financial products, though they may not receive the absolute best terms available.

• 670–739: Good – This is the range that many lenders consider acceptable for credit approval. While borrowers in this category usually qualify for a variety of credit cards and loans, the terms and rates may not be as favorable as those offered to borrowers with higher scores.

• 580–669: Fair – Consumers with scores in this range are often considered subprime borrowers, which means lenders may see them as a higher risk. They may still be approved for credit, but often with higher interest rates or lower credit limits.

• 300–579: Poor – This range indicates a history of late payments, defaults or other negative marks on a user's credit reports. Consumers with poor credit scores may struggle to get approved for traditional loans or credit cards without a secured card or a co-signer.

A good credit score – typically 670 or above – can make a meaningful difference when it comes to the kinds of financial opportunities that will be available to you. Not only can a higher score improve your chances of loan approval, but it also can lead to:

• Lower interest rates

• Higher credit limits

• Better credit card rewards

• More flexibility in negotiating loan terms

Ranges and approval criteria vary by lender, product, and scoring model. A given score does not guarantee approval or specific terms.

Maintaining a strong FICO score is all about building a positive track record with credit over time. That means making on-time payments, keeping credit utilization low, managing a healthy credit mix and avoiding late payments or defaults. No matter your financial goals, your FICO score is one of the most important tools lenders use to understand how financially reliable you are.

But if your credit score isn’t as high as you’d like today, all hope isn’t lost. Options like the Juzt Digital Credit Card are designed specifically to help consumers build credit history. And unlike secured credit cards, the Juzt Credit Card doesn’t require a deposit. You’ll get an instant decision^[4], and if approved you can use your Juzt Credit Card immediately for emergencies, everyday needs and online shopping while you build a credit history.

Juzt Credit Card is issued by tbom®, Perryville, MO. Standard credit approval required. Terms, rates (APRs), and fees are subject to change. See the Juzt Credit Card Terms and Conditions for complete information, including APRs, fees, and repayment obligations. Approval is not guaranteed.

Credit Building Methods

There are several effective tools for establishing credit and improving your score over time. Here are a few of the most effective:

Secured credit cards

A secured card requires you to pay a refundable security deposit – usually $200 or more. The credit card company holds this deposit as collateral. As you use your card and make on-time payments, the issuer reports your activity to the three major credit bureaus. Over time, responsible credit use may lead to a credit limit increase or an upgrade to an unsecured card.

Unsecured credit cards

Unlike secured cards, unsecured cards don’t require a deposit. These cards typically are available to people with fair to excellent credit and often come with higher limits and rewards. Using an unsecured card responsibly is a powerful way to build your own credit history.

Because unsecured credit cards don’t require a security deposit, they're a common next step for people who are just starting to build credit. A great example is the Juzt Digital Credit Card, a digital-first, unsecured card built with simplicity and credit-building in mind. Juzt runs on the trusted Mastercard network and reports regularly to Equifax, which can help you build credit as you responsibly use your card. With a straightforward digital experience, instant approval decisions and clear terms, Juzt is designed to help you unlock more financial benefits.

Installment loans

Credit-builder loans, personal loans and auto loans fall into this category. A credit builder loan can be a great option for someone with a thin credit file. With this type of loan, you make monthly payments into a locked bank account and receive the funds at the end of the term. These payments build a positive payment history when they are reported to the three credit bureaus.

Authorized user status

If a family member or trusted friend adds you as an authorized user on their credit card account, their positive payment history can benefit your credit. To get the best benefit from this approach, make sure the credit card issuer reports authorized users to the credit reporting agencies.

Not all issuers report authorized users, and some scoring models or lenders may discount or exclude authorized-user data. Negative activity on the primary account can harm an authorized user’s credit.

Timeline for Building Credit

So, how long does it take to build credit? That all depends on your situation, but here's a general roadmap to keep in mind

Short-term actions to improve credit
Within six months, you can generate your first credit score if you’re starting from scratch. Actions like making on-time payments, keeping your credit utilization low and checking your free credit report for errors can show results in as little as a few months.

Time to first score depends on bureau reporting and the scoring model. Some models require at least six months of history; others may score sooner. Results vary.

Medium-term strategies for sustained improvement

Over six to 24 months, you can move from a nonexistent credit file to a robust borrowing profile. Make sure to apply only for new credit you need, keep older credit card accounts open, and aim to pay off your full credit card balance each month. Requesting a credit limit increase – if your lender allows it – can also improve your credit utilization ratio.

As you move past the first few months of building credit, it’s important to stick with credit products that support your goals. The Juzt Digital Credit Card is a great example – it’s specifically designed for credit-building, so your responsible use of it can make a big difference. Over time, keeping your balances low and payments on track can help you move from a thin file to a stronger, more confident credit profile.

Score improvement is not guaranteed. Impacts depend on your individual credit profile, balances, and on-time payment behavior.

Long-term considerations for a robust credit history

Establishing a good or excellent credit score can take years – so don’t be discouraged if you aren’t seeing results as quickly as you’d like. Credit scoring models reward a long track record of responsible credit use over time, so every good decision helps. Keep your credit accounts in good standing, maintain a healthy credit mix and avoid late payments or defaults – all of these moves will help strengthen your credit over time.

Credit Mistakes to Avoid

Even small missteps can undermine your credit-building progress. As you work to establish or improve your credit, it’s just as important to know what to avoid as it is to understand what to do.

Common pitfalls in credit building 

Here are some common issues to watch out for:

• One common trap is applying for too many cards at once in hopes of getting approved for something – anything. But that can actually work against you since each application triggers a hard inquiry on your credit report. A healthier approach is to find one trustworthy card that fits your needs and stick with it. For instance, the Juzt Digital Credit Card offers a simple, no-fuss way to start building credit without overcomplicating the process. That way, you can focus on what really matters: using credit wisely. With a digital-first approach and instant decisions, Juzt can be a powerful option if you’re trying to wisely build credit.

• Product features and eligibility vary and are subject to credit approval. Using a credit card for emergencies or everyday purchases may result in interest charges if the statement balance is not paid in full.

• Another common misstep is carrying high credit card balances relative to your total credit limit. This increases your credit utilization ratio, a major factor in your score. Even if you’re making on-time payments, maxing out your available credit can hurt your profile and signal risky behavior to lenders. Keeping your balances well below 30% of your credit limit is a good rule of thumb – and the lower, the better.

• Some people also hurt their credit inadvertently by closing old credit accounts. While it may seem like a good idea to reduce the number of cards you manage, closing older accounts can shorten your average account age, which may lower your score. In most cases, keeping old accounts open (especially if they're in good standing) helps build a stronger credit history.

• Finally, one of the most overlooked pitfalls is ignoring your credit reports. Errors or outdated information can drag your score down for no good reason. Regularly reviewing your reports – and disputing inaccuracies with the appropriate credit reporting agency – is a simple yet powerful way to safeguard your progress and make sure your credit profile reflects your accurate financial behavior.

Impact of late payments and defaults

Late payments can significantly hurt your credit score – especially if you're just starting your credit journey. In fact, missed payments can linger on your credit report for up to seven years. And defaults, collections and bankruptcies can take even longer to recover from. However – with consistent, responsible credit habits, even serious setbacks can be overcome. It just takes time.

At the end of the day, the credit building process rewards patience, persistence and smart financial choices. To build a strong credit history in the U.S., make on-time payments, keep your credit utilization low, and regularly monitor your Transunion, Equifax and/or Experian credit report. It's simple, but it’s not always easy; however, with the guidance we’ve provided here, you can make your next financial decision the best one possible.

Building a strong credit profile gives you more financial options for the future – it opens the door to lower rates, better loan terms and increased financial flexibility. No matter your starting point, you have the tools to fix credit issues and build toward a stronger financial future.

This article is for informational purposes only and does not constitute financial, legal, or tax advice. Credit outcomes and timelines vary by individual profile and scoring model; no specific result is guaranteed. Review cardmember agreements and program terms before applying or using any product.

Credit card features and availability are subject to credit approval and may change. See the Juzt Credit Card Terms and Conditions for current APRs, fees, and terms.