How long is enough credit history time to obtain a credit card?

6 comments

1. Peter on September 9, 2010 at 1:06 pm

   credit-report-free.totalh.com – try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.

2. Possum on September 9, 2010 at 1:06 pm

   If you have less than 3 years of credit history you are considered "Limited History / New to Credit."
   Try to get a card with your bank. If you have been there long enough they may give you one if your account has always been in good standing.

3. Coach Tammy on September 9, 2010 at 1:06 pm

   The easiest way to shop for a credit card to meet your needs is through the Internet. There are many web sites that allow you to enter specific criteria and then match you with potential credit card offers. You can try Bankrate.com or IndexCreditCards.com for comparison tables of credit cards

   Since you have no history you may want to start with a secured card which uses your cash deposit and that becomes the credit line for that account. For example, if you put $700 in the account; you can charge up to $700. Once you establish a good payment history, many lenders will then extend a credit line to you.

   When shopping for the best credit card for your situation, you also need to consider:
   The cost of fees (annual, over the limit etc)
   The Annual percentage Rate (APR or interest rate)
   How long the grace period is and when the billing cycle runs.

   Best wishes,

4. mattermatics on September 9, 2010 at 1:06 pm

   6 months

5. Dianne on September 9, 2010 at 1:06 pm

   typically it’s about 2-3 years of a good payment history. if you keep applying for credit cards it will also lower your credit score and inquires stay on your report for 2 years. and too many inquires can put you in a denied status. if you haven’t had any loans or credit cards then you no credit history. no credit history is almost as bad as having bad credit. your best bet would be to: First you now need to be 21 yrs old unless you have a cosigner that has excellent credit. 2) a secured visa or master card from your bank or credit union would be the best route to go. and that’s with out a cosigner. some credit unions are easier to do that with plus they have a lower interest rates. there are some banks and/or credit unions don’t even offer secured credit cards any more.

6. SoNu on September 9, 2010 at 1:06 pm

   Credit Cards

   A credit card is a loan to a consumer to purchase goods and services. When using credit cards, a consumer is usually given a spending limit he must stay within. There are also terms that must be followed regarding repayment of the loan. In exchange for offering the service, the credit card company may charge an interest rate or other fees and penalties for the services provided.

   Credit Scores

   A good credit or FICO score is determined by five key factors: payment history, amount owed, length of credit history, new credit and types of credit. Building good credit is determined by the ability to juggle these five elements. Acquiring debt and making timely payments with creditors such as student loan companies, credit card merchants, utility accounts, lease agreements and car loan and mortgage companies are all steps in building credit.

   How Long

   The key to building credit with a credit card begins with the timing of the company reporting to the credit bureaus and the consumer maintaining consistent behavior. The longer the consumer pays the agreed amount and pays it on time, the more favorable having the credit card becomes. In most instances, it takes at the least 3 months to see the least impact of a credit card on a credit history. However, consistent payments over 6 months to a year will help build credit even better. Every situation is different and unique.

   Limitations

   One single credit card will not build credit alone. Building credit involves a good mix of credit history. In addition, it is essential to understand that though a bill may be paid on time, if it is consistently at or over the credit limit, this can impact credit in a negative way. Having multiple credits card can have the same devastating effect.

   Strategies

   Acquire cards specifically for building credit. Credit cards that have lower limits or deposits required are used for such purposes. While they are limited in their uses, they still serve the purposes of reporting positive information to credit files. By charging only what is affordable and keeping the balance of the card at either zero or under half the limit, you can build credit with credit cards. Maintain the card in good standing for at least 6 months before checking its effect on your credit history.

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