{"id":34708,"date":"2022-11-04T02:31:31","date_gmt":"2022-11-04T09:31:31","guid":{"rendered":"https:\/\/financer.com\/?post_type=how_to&#038;p=34708"},"modified":"2023-12-26T08:11:26","modified_gmt":"2023-12-26T16:11:26","slug":"build-credit-with-a-credit-card","status":"publish","type":"how_to","link":"https:\/\/financer.com\/credit-cards\/articles\/build-credit-with-a-credit-card\/","title":{"rendered":"How To Build Credit with a Credit Card: The Ultimate Guide"},"content":{"rendered":"<div class=\"fn_block block_fn_msg_box key-takeaways\"><div class=\"fn_block__icon\"><\/div><p><!-- wp:paragraph --><\/p>\n<p><strong>Key Takeaways<\/strong><\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:list --><\/p>\n<ul>\n<li><a href=\"https:\/\/financer.com\/credit-cards\/\">Credit cards<\/a> offer one of the best ways to build or rebuild credit.<\/li>\n<li>Building credit with a credit card boils down to developing good credit habits.<\/li>\n<li>Paying your bills on time and maintaining a low credit utilization rate will have the biggest impact on your credit-building or rebuilding efforts.<\/li>\n<li>How long it takes to build credit with a credit card depends on whether you are building credit from scratch or rebuilding bad credit.<\/li>\n<li>Using a popular scoring model like FICO as your guide will help you prioritize your credit-building efforts.<\/li>\n<\/ul>\n<p><!-- \/wp:list --><\/p><\/div>\n\n\n<p>Building credit from scratch or rebuilding bad credit can seem like a daunting task. However, if you develop good credit habits, you will find the process of building credit with a credit card much easier. <\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-1 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\"><\/div><\/div>\n<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"i7_Steps_to_Build_Credit_with_a_Credit_Card\">7 Steps to Build Credit with a Credit Card<\/h2>\n\n\n\n<p>To build credit with a credit card, you have to use a popular scoring model like FICO as your guide. <\/p>\n\n\n\n<p>The following steps will help you prioritize your credit-building efforts by focusing on the factors used in FICO estimates.\u00a0<\/p>\n\n\n<div class=\"single-article__steps\">        <style>\n            .single-article__steps-items .single-article__steps-content {\n                background: #FFFFFF;\n                padding: 30px;\n                margin: 0 0 30px 0;\n                border-radius: 10px;\n                box-shadow: 0 0 10px 0 rgba(0, 0, 0, 0.14);\n                width: calc(100% - 5px);\n            }\n            .single-article__steps-items .single-article__steps-counter {\n                padding: 5px 20px;\n                border-radius: 3px;\n                background-color: #F5E7D8;\n                display: inline-block;\n                top: 15px;\n                left: -30px;\n                position: relative;\n                font-size: 16px;\n                font-weight: 600;\n            }\n\/*            .single-article__steps-items::before {\n                content: \"\";\n                position: absolute;\n                top: 20px;\n                left: 0;\n                height: calc(100% + 40px);\n                border-left: 2px dashed #e0e0e1;\n            }*\/\n            .single-article__conclusion-tag {\n                padding: 5px 20px;\n                border-radius: 3px;\n                color: #000000;\n                background-color: #F5E7D8;\n                display: inline-block;\n                top: 15px;\n                left: -30px;\n                position: relative;\n                font-size: 16px;\n                font-weight: 600;\n            }\n            .single-article__conclusion-item {\n                background: #FFFFFF;\n                padding: 30px;\n                margin: 0 0 30px 0;\n                border-radius: 10px;\n                box-shadow: 0 0 10px 0 rgba(0, 0, 0, 0.14);\n            }\n        <\/style>\n        <div class=\"single-article__steps-items\"><div class=\"single-article__steps-counter\" id=\"step_1\">Step 1<\/div><div class=\"single-article__steps-content\"><h3 id=\"Pay-credit-card-bills-on-time-every-time\">Pay credit card bills on time, every time<\/h3><p><!-- wp:paragraph --><\/p>\n<p>Developing a consistent pattern of timely payments is the most important step in building credit. A record of regular on-time payments is a strong signal of responsibility.<\/p>\n<p>The more responsibility you can prove with credit (as reflected by a pattern of consistent timely payments), the higher credit agencies will rate you, which reflects as an increase in your <a href=\"https:\/\/financer.com\/wiki\/credit-score\/\">credit score<\/a>.\u00a0<\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p>This is evident in the fact that payment history constitutes 35% of your FICO Score &#8211; the most popular scoring model used by lenders &#8211; and 41% of your <a href=\"https:\/\/vantagescore.com\/company\/about-vantagescore\/\" target=\"_blank\" rel=\"noreferrer noopener\">VantageScore<\/a>.<\/p>\n<p><!-- \/wp:paragraph --><\/p><\/div><div class=\"single-article__steps-counter\" id=\"step_2\">Step 2<\/div><div class=\"single-article__steps-content\"><h3 id=\"Keep-a-low-credit-utilization-rate\">Keep a low credit utilization rate<\/h3><p><!-- wp:paragraph --><\/p>\n<p>How much credit you use compared to how much credit you have available &#8211; also known as your credit utilization rate &#8211; is another crucial factor in building credit.<\/p>\n<p>To scale up your credit score, you have to keep your credit utilization low. This means using 30% or less of your available credit.\u00a0<\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p><strong>Example<\/strong>: If you\u2019re carrying a $300 balance on a credit card with a $1000 credit limit, your credit utilization rate is 30%. However, if you have the same $300 balance on a credit card with a $10,000 credit limit, your utilization rate would be 3%.<\/p>\n<p>Credit utilization is the second biggest factor used in FICO score estimates.<\/p>\n<p><!-- \/wp:paragraph --><\/p><\/div><div class=\"single-article__steps-counter\" id=\"step_3\">Step 3<\/div><div class=\"single-article__steps-content\"><h3 id=\"Slow-down-on-new-credit-applications\">Slow down on new credit applications<\/h3><p><!-- wp:paragraph --><\/p>\n<p>Another factor that affects your credit score is the length of your credit history. Length of credit history constitutes 15% of your FICO score and includes metrics like the average age of your accounts &#8211; a number that goes down each time you open a new account.<\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p>New credit applications can also result in a hard inquiry which can lead to a temporal drop in your credit score. What this means is that slowing down on new credit applications can help you keep a longer average age of accounts as well as reduce the number of inquiries on your credit report.<\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p>What\u2019s more, if you make multiple credit applications in a short period of time, it will reflect multiple inquiries on your credit report. Most lenders will translate this as an act of trying to get as much credit as you can which portrays you as a bad credit risk.<\/p>\n<p>What this means is that you have to slow down on new credit applications if you are looking to build credit with a credit card.<\/p>\n<p><!-- \/wp:paragraph --><\/p><\/div><div class=\"single-article__steps-counter\" id=\"step_4\">Step 4<\/div><div class=\"single-article__steps-content\"><h3 id=\"Use-your-credit-card-regularly\">Use your credit card regularly<\/h3><p><!-- wp:paragraph --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p>Length of credit history, which is one of the factors used in estimating FICO scores also takes into account the frequency of credit usage.<\/p>\n<p>Because the frequency of credit usage is a key consideration in credit scoring, it is important not to leave an account dormant if you are looking to build credit.\u00a0<\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p>While you don&#8217;t have to max out your accounts to build credit (which would be counterproductive), you want to keep your credit card accounts active.\u00a0<!-- \/wp:paragraph --><\/p><\/div><div class=\"single-article__steps-counter\" id=\"step_5\">Step 5<\/div><div class=\"single-article__steps-content\"><h3 id=\"Request-a-credit-limit-increase\">Request a credit limit increase\u00a0<\/h3><p><!-- wp:paragraph --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p>Increasing your credit limit can lower your utilization rate. As pointed out earlier, a lower credit utilization rate can improve your credit score. With a higher limit, you can increase your spending without dramatically increasing your utilization rate.\u00a0<\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p>Increasing your credit limit can help you attain the ideal utilization rate of 30% or less even with increased spending as long as the increase in spending is not commensurate with the increased credit limit.\u00a0<\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p>If you maintain a low utilization rate and make timely payments, the bank may increase your credit limit. However, you can also contact your card provider to request a credit limit increase.<!-- \/wp:paragraph --><\/p><\/div><div class=\"single-article__steps-counter\" id=\"step_6\">Step 6<\/div><div class=\"single-article__steps-content\"><h3 id=\"Add-to-your-credit-mix\">Add to your credit mix<\/h3><p><!-- wp:paragraph --><\/p>\n<p>Having a good mix of debt impacts your credit score positively. A good credit mix shows that you can handle different types of credit accounts at a time.<\/p>\n<p>Your total credit mix consists of the different credit accounts you hold such as credit cards, car payments, and mortgage payments (which are all classified as different credit accounts).\u00a0<\/p>\n<p><!-- \/wp:paragraph --> <!-- wp:paragraph --><\/p>\n<p>Now, this doesn&#8217;t mean you should open multiple credit accounts just because you want to improve your credit mix. You have to be strategic with how you use credit cards as using them unwisely can hurt your score.<\/p>\n<p><!-- \/wp:paragraph --><\/p><\/div><div class=\"single-article__steps-counter\" id=\"step_7\">Step 7<\/div><div class=\"single-article__steps-content\"><h3 id=\"Do-not-close-a-credit-card-account\">Do not close a credit card account<\/h3><p>When you close a credit card account, you also close all the <a href=\"https:\/\/consumer.gov\/credit-loans-debt\/your-credit-history\" target=\"_blank\" rel=\"noopener\">credit history<\/a> associated with it. As pointed out in a prior section, credit history is a huge component of what makes up a high credit score.\u00a0<\/p>\n<p>The more history you have, the higher your credit score is likely to be. You should always keep your credit card accounts open even if you don\u2019t use them because that keeps your credit history intact.\u00a0<\/p><\/div><\/div>            <div class=\"single-article__conclusion\">\n                            <\/div>\n            <\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"How_Long_it_Takes_to_Build_Credit_With_a_Credit_Card\"><strong>How Long it Takes to Build Credit With a Credit Card<\/strong><\/h2>\n\n\n\n<p>How long it takes to build credit with a credit card depends on whether you are building credit from scratch or rebuilding bad credit.\u00a0\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"If_you_have_no_credit\">If you have no credit<\/h3>\n\n\n\n<p>If you are building credit from scratch then you have no credit score. This doesn&#8217;t mean that your credit score is zero either. It just means that there is no information to calculate your credit score since you have not used credit before.\u00a0<\/p>\n\n\n\n<p><strong>So how long does it take to get your first score when you start using credit? <\/strong>It depends on the credit scoring model used and how quickly a lender reports information about a new account to credit bureaus. <\/p>\n\n\n\n<p><strong>For example, it can take up to six months to get your first <a href=\"https:\/\/financer.com\/company\/myfico\/\" target=\"_blank\" rel=\"noreferrer noopener\">FICO score<\/a>.<\/strong> If you develop good credit habits, you will get a good starting score which you can continue to build.\u00a0\u00a0<\/p>\n\n\n\n<p>Here are the five FICO credit score ranges:<\/p>\n\n\n\n<ul>\n<li>Poor: less than 580<\/li>\n\n\n\n<li>Fair: 580 to 669<\/li>\n\n\n\n<li>Good: 670 to 739<\/li>\n\n\n\n<li>Very Good: 740 to 799<\/li>\n\n\n\n<li>Exceptional: 800 to 850<\/li>\n<\/ul>\n\n\n\n<p>While it&#8217;s unlikely that your first credit score will be the lowest (300), it also doesn&#8217;t mean that you will start out with the highest (850) either. A reasonable expectation would be somewhere in the middle range (580\u2013669 or 670\u2013739).\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"If_you_have_bad_credit\">If you have bad credit<\/h3>\n\n\n\n<p>If you have <a rel=\"noreferrer noopener\" href=\"https:\/\/corporatefinanceinstitute.com\/resources\/commercial-lending\/bad-credit-causes\/\" target=\"_blank\">bad credit<\/a>, you will need a good deal of patience and good credit habits to rebuild your credit profile. <\/p>\n\n\n\n<p><strong>So how long does it take to rebuild credit if you have a poor score?<\/strong> It\u2019s hard to say how long it takes to rebuild credit since there are different scenarios of bad credit.<\/p>\n\n\n\n<p>Research published by <a rel=\"noreferrer noopener\" href=\"https:\/\/www.fico.com\/blogs\/research-looks-how-mortgage-delinquencies-affect-scores\" target=\"_blank\">FICO<\/a> and <a rel=\"noreferrer noopener\" href=\"https:\/\/www.cnbc.com\/2019\/09\/14\/heres-how-long-it-takes-to-improve-your-credit-score.html\" target=\"_blank\">CNBC<\/a> shows that minor delinquencies like a late mortgage payment can take up to three months to recover from the resultant drop in your credit score while major delinquencies like defaulted payments can take up to eighteen months to recover from. <\/p>\n\n\n\n<p>More serious delinquencies like home foreclosure and bankruptcy can take three and six years respectively to recover from the resultant drop in your score.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"How_to_Build_Credit_With_a_Credit_Card_Fast\"><strong>How to Build Credit With a Credit Card Fast<\/strong><\/h2>\n\n\n\n<p>While making timely payments, keeping a low utilization rate, and improving your credit mix can help you build credit, you can supercharge your credit-building efforts by taking extra steps.\u00a0\u00a0<\/p>\n\n\n\n<p><strong>To fast-track your credit-building process:<\/strong><\/p>\n\n\n\n<ul>\n<li>Become an authorized user<\/li>\n\n\n\n<li>Get a <a href=\"https:\/\/financer.com\/credit-cards\/secured-credit-cards\/\">secured credit card<\/a><\/li>\n\n\n\n<li>Apply for a credit-builder loan<\/li>\n\n\n\n<li>Try <a href=\"https:\/\/financer.com\/company\/experian\/redirect\/\" rel=\"sponsored noopener nofollow\" target=\"_blank\">Experian Boost<\/a> or UltraFICO<\/li>\n\n\n\n<li>Make regular timely payments, keep a low utilization rate, and develop a good credit mix<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"How_to_Rebuild_Credit_if_You_Have_a_Bad_Score\"><strong>How to Rebuild Credit if You Have a Bad Score\u00a0<\/strong><\/h2>\n\n\n\n<p>A good place to start rebuilding bad debt (excuse the pun) is to focus on paying off existing debts. However, the effort that can have the biggest impact on your attempt to rebuild credit is making on-time payments. <\/p>\n\n\n\n<p>This is because payment history is the most important consideration in FICO score estimations (35%).\u00a0<\/p>\n\n\n\n<p>You can rebuild credit with a credit card regardless of the nature of bad debt you have accumulated if you develop good credit habits like paying off existing debts, making on-time payments, and maintaining a utilization rate of 30% or less. <\/p>\n\n\n\n<p>How long it takes to attain a good score and how much increase you can expect will depend on your credit situation.\u00a0<\/p>\n\n\n\n<p><strong>To rebuild credit if you have a bad score:<\/strong><\/p>\n\n\n\n<ul>\n<li>Pay off existing debt\u00a0<\/li>\n\n\n\n<li>Get a <a href=\"https:\/\/financer.com\/credit-cards\/secured-credit-cards\/\">secured credit card<\/a><strong> <\/strong>or<strong> <\/strong>consider one of <a href=\"https:\/\/financer.com\/credit-cards\/bad-credit\/\">the best credit cards for bad credit<\/a>.\u00a0<\/li>\n\n\n\n<li>Apply for a credit-builder loan<\/li>\n\n\n\n<li><a rel=\"noreferrer noopener\" href=\"https:\/\/consumer.ftc.gov\/articles\/disputing-errors-your-credit-reports\" target=\"_blank\">Dispute credit report errors<\/a><\/li>\n\n\n\n<li>Make regular timely payments, keep a low utilization rate, and develop a good credit mix<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"How_to_Build_Credit_From_Scratch_if_You_Have_No_Credit_History\"><strong>How to Build Credit From Scratch if You Have No Credit History<\/strong>\u00a0<\/h2>\n\n\n\n<p>You need credit to build credit. However, you won\u2019t get credit without credit (again, excuse the pun). By that, I mean that a lender won\u2019t extend you a line of credit without a way of evaluating your creditworthiness (using a credit score) and you need to use credit to build a credit score. <\/p>\n\n\n\n<p>How do you solve this chicken-and-egg problem? That\u2019s where secured credit cards come in.\u00a0<\/p>\n\n\n\n<p>Unlike regular credit cards, secured credit cards require an upfront cash deposit to open the account. The cash deposit serves as a form of collateral that minimizes risk to the card issuer. <\/p>\n\n\n\n<p>The security deposit required to get a secured credit card typically ranges from $200 to $2500.<\/p>\n\n\n\n<p>A secured card can help you build a credit score that eventually qualifies you for a regular credit card. However, obtaining a secured card is just the first step.\u00a0<\/p>\n\n\n\n<p><strong>To build credit from scratch:<\/strong><\/p>\n\n\n\n<ul>\n<li>Get a <a href=\"https:\/\/financer.com\/credit-cards\/secured-credit-cards\/\">secured credit card<\/a><\/li>\n\n\n\n<li>Become an authorized user<\/li>\n\n\n\n<li>Apply for a credit-builder loan<\/li>\n\n\n\n<li>Build credit with a store card<\/li>\n\n\n\n<li>Make regular timely payments and keep a low credit utilization rate.\u00a0<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"Conclusion\"><strong>Conclusion\u00a0<\/strong><\/h3>\n\n\n\n<p>You can build or rebuild credit with a credit card if you develop good credit habits. It all boils down to proving that you can follow through on credit obligations and use credit responsibly. <\/p>\n\n\n\n<p>How long it takes to attain a good score will depend on whether you are building credit from scratch or rebuilding bad credit. <\/p>\n\n\n\n<p>You can fast-track your credit-building efforts by becoming an authorized user, getting a secured card, or applying for a credit builder loan.\u00a0<\/p>\n\n\n<div class=\"fn_block block_fn_button  buttons  is-flex is-flex-direction-column is-align-items-center\"><a href=\"https:\/\/financer.com\/credit-cards\/\" class=\"button  is-rounded is-primary is-large is-arrow\" target=\"_blank\"  >Compare the best credit cards<\/a><\/div>\n\n<section class=\"fn_block quiz-section\">\n    <div class=\"container\">\n        <div class=\"quiz-section__wrapp page-content\">\n            <div class=\"container\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"quiz_header\">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"quiz_header_title\">\n\t\t\t\t\t\t\t\t\t\t\t\t<h3>How to build credit with a credit card quiz<\/h3>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"quiz_header_description\"><p>Test your knowledge\u00a0<\/p><\/div>\n\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<div class=\"quiz-question__start-button\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"has-text-centered\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<button href=\"https:\/\/dimi.creatinmagic.com\/us\/company\/\" id=\"start_btn\" class=\"button is-rounded is-primary quiz-start-button\">\n\t\t\t\t\t\t\t\t\t\t\t\t\tTake Quiz \n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/button>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div><div class=\"fn_quiz\" data-signin-start=\"\" data-signin-result=\"\" data-id=\"44036\" quiz-type=\"single\" data-js-quiz-block style=\"display: none\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"quiz_content\"><div class=\"quiz-controll-buttons\">\n\t\t\t\t\t\t\t\t\t\t<button class=\"button is-rounded is-primary\" id=\"prev_btn\" disabled>Previous<\/button>\n\t\t\t\t\t\t\t\t\t\t<div class=\"quiz-controll-buttons-counter\">Question <span id=\"quiz_counter\">1\/7<\/span><\/div>\n\t\t\t\t\t\t\t\t\t\t<button class=\"button is-rounded is-primary\" id=\"next_btn\" disabled>Next<\/button>\n\t\t\t\t\t\t\t\t\t\t<button class=\"button is-rounded is-primary\" id=\"end_quiz\" disabled>Results<\/button>\n\t\t\t\t\t\t\t\t\t<\/div><div class=\"quiz-question__row\" id=\"quiz_question_0\"><div class=\"quiz-question__text\">Which factor has the biggest impact on credit-building or rebuilding efforts?<\/div><div id=\"answer0\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio0\" class=\"radio\" data-is-true=\"false\" type=\"radio\" name=\"quiz-answers_0[]\" value=\"0\" \/><p>Length of credit history<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><div id=\"answer1\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio1\" class=\"radio\" data-is-true=\"false\" type=\"radio\" name=\"quiz-answers_0[]\" value=\"0\" \/><p> Average age of accounts<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><div id=\"answer2\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio2\" class=\"radio\" data-is-true=\"true\" type=\"radio\" name=\"quiz-answers_0[]\" value=\"0\" \/><p>Payment history<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><div id=\"answer3\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio3\" class=\"radio\" data-is-true=\"false\" type=\"radio\" name=\"quiz-answers_0[]\" value=\"0\" \/><p>Credit utilization rate<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><\/div><div class=\"quiz-question__row\" id=\"quiz_question_1\"><div class=\"quiz-question__text\">What is the recommended credit utilization rate to improve credit score?<\/div><div id=\"answer4\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio4\" class=\"radio\" data-is-true=\"false\" type=\"radio\" name=\"quiz-answers_1[]\" value=\"50\" \/><p>50% or less<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><div id=\"answer5\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio5\" class=\"radio\" data-is-true=\"true\" type=\"radio\" name=\"quiz-answers_1[]\" value=\"30\" \/><p>30% or less<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><div id=\"answer6\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio6\" class=\"radio\" data-is-true=\"false\" type=\"radio\" name=\"quiz-answers_1[]\" value=\"10\" \/><p> 10% or less<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><div id=\"answer7\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio7\" class=\"radio\" data-is-true=\"false\" type=\"radio\" name=\"quiz-answers_1[]\" value=\"5\" \/><p>5% or less<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><\/div><div class=\"quiz-question__row\" id=\"quiz_question_2\"><div class=\"quiz-question__text\">Why is it advised to slow down on new credit applications?<\/div><div id=\"answer8\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio8\" class=\"radio\" data-is-true=\"false\" type=\"radio\" name=\"quiz-answers_2[]\" value=\"0\" \/><p>New credit applications can lead to a decrease in credit limit<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><div id=\"answer9\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio9\" class=\"radio\" data-is-true=\"true\" type=\"radio\" name=\"quiz-answers_2[]\" value=\"0\" \/><p> New credit applications can result in multiple inquiries on your credit report<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><div id=\"answer10\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio10\" class=\"radio\" data-is-true=\"false\" type=\"radio\" name=\"quiz-answers_2[]\" value=\"0\" \/><p>New credit applications can increase your credit utilization rate<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><div id=\"answer11\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio11\" class=\"radio\" data-is-true=\"false\" type=\"radio\" name=\"quiz-answers_2[]\" value=\"0\" \/><p>New credit applications can lower your credit score permanently<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><\/div><div class=\"quiz-question__row\" id=\"quiz_question_3\"><div class=\"quiz-question__text\">Which of the following is NOT mentioned as a step to build credit with a credit card?<\/div><div id=\"answer12\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio12\" class=\"radio\" data-is-true=\"false\" type=\"radio\" name=\"quiz-answers_3[]\" value=\"0\" \/><p>Keeping credit card accounts active<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><div id=\"answer13\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio13\" class=\"radio\" data-is-true=\"false\" type=\"radio\" name=\"quiz-answers_3[]\" value=\"0\" \/><p>Requesting a credit limit increase<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><div id=\"answer14\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio14\" class=\"radio\" data-is-true=\"true\" type=\"radio\" name=\"quiz-answers_3[]\" value=\"0\" \/><p> Closing unused credit card accounts<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><div id=\"answer15\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio15\" class=\"radio\" data-is-true=\"false\" type=\"radio\" name=\"quiz-answers_3[]\" value=\"0\" \/><p>Adding to your credit mix<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><\/div><div class=\"quiz-question__row\" id=\"quiz_question_4\"><div class=\"quiz-question__text\">How long does it typically take to get your first FICO score when you start using credit?<\/div><div id=\"answer16\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio16\" class=\"radio\" data-is-true=\"false\" type=\"radio\" name=\"quiz-answers_4[]\" value=\"0\" \/><p>Up to 1 month<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><div id=\"answer17\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio17\" class=\"radio\" data-is-true=\"false\" type=\"radio\" name=\"quiz-answers_4[]\" value=\"0\" \/><p>Up to 3 months<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><div id=\"answer18\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio18\" class=\"radio\" data-is-true=\"true\" type=\"radio\" name=\"quiz-answers_4[]\" value=\"0\" \/><p> Up to 6 months<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><div id=\"answer19\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio19\" class=\"radio\" data-is-true=\"false\" type=\"radio\" name=\"quiz-answers_4[]\" value=\"0\" \/><p> Up to 1 year<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><\/div><div class=\"quiz-question__row\" id=\"quiz_question_5\"><div class=\"quiz-question__text\">Which factor is considered the most important consideration in FICO score estimations?<\/div><div id=\"answer20\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio20\" class=\"radio\" data-is-true=\"false\" type=\"radio\" name=\"quiz-answers_5[]\" value=\"0\" \/><p>Length of credit history<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><div id=\"answer21\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio21\" class=\"radio\" data-is-true=\"false\" type=\"radio\" name=\"quiz-answers_5[]\" value=\"0\" \/><p> Credit utilization rate<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><div id=\"answer22\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio22\" class=\"radio\" data-is-true=\"true\" type=\"radio\" name=\"quiz-answers_5[]\" value=\"0\" \/><p>Payment history<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><div id=\"answer23\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio23\" class=\"radio\" data-is-true=\"false\" type=\"radio\" name=\"quiz-answers_5[]\" value=\"0\" \/><p>Credit mix<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><\/div><div class=\"quiz-question__row\" id=\"quiz_question_6\"><div class=\"quiz-question__text\">How can you rebuild credit if you have a bad score?<\/div><div id=\"answer24\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio24\" class=\"radio\" data-is-true=\"false\" type=\"radio\" name=\"quiz-answers_6[]\" value=\"0\" \/><p>Close all credit card accounts<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><div id=\"answer25\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio25\" class=\"radio\" data-is-true=\"false\" type=\"radio\" name=\"quiz-answers_6[]\" value=\"0\" \/><p>Apply for multiple credit cards simultaneously<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><div id=\"answer26\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio26\" class=\"radio\" data-is-true=\"true\" type=\"radio\" name=\"quiz-answers_6[]\" value=\"0\" \/><p>Pay off existing debts, make on-time payments, and keep a low credit utilization rate<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><div id=\"answer27\" class=\"quiz-question__answer-container \"><div class=\"quiz-question__answer answer financer-field-group\"><label class=\"radio\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t <input id=\"radio27\" class=\"radio\" data-is-true=\"false\" type=\"radio\" name=\"quiz-answers_6[]\" value=\"0\" \/><p> Avoid using credit cards altogether<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t <\/label>\n\t\t\t\t\t\t\t\t\t\t\t <\/div><\/div><\/div><\/div><div class=\"quiz-results has-text-centered is-hidden\"><div class=\"quiz-result\">You answered <span data-js-correct-answer><\/span> out of <span data-js-all-answer>7<\/span> questions correctly!<span class=\"quiz-result-text\"><\/span><\/div><button class=\"button is-rounded is-primary is-hidden\" id=\"reset_btn\">Take the Quiz again<\/button><\/div><\/div><\/div>        <\/div>\n    <\/div>\n<\/section>\n\n\n<div class=\"fn_block block_fn_faq_list\"><h3 id=\"FAQs\">FAQs<\/h3><h4>What is the fastest way to build credit with a credit card?<\/h4><div class=\"faq_inner\"><p>There isn&#8217;t one way to build credit fast that&#8217;s perfect for all scenarios. However, there are multiple ways to build credit fast. The approach to take depends on your credit situation.<\/p><\/div><h4>How long does it take to build credit with a credit card?\u00a0<\/h4><div class=\"faq_inner\"><p>It depends on whether you are building credit from scratch or rebuilding bad credit. If you are building credit from scratch, you can attain a fairly good score in a couple of months. If you are rebuilding credit, it can take anywhere from a few months to a couple of years depending on the nature of bad debt you have.\u00a0<\/p><\/div><h4>Is a credit card the best way to build credit?<\/h4><div class=\"faq_inner\"><p>Credit cards offer one of the best ways to build or rebuild credit.<\/p><\/div><h4>How much should I pay on my credit card to raise my credit score?<\/h4><div class=\"faq_inner\"><p>Paying your bills on time and in full will impact your credit score positively. If you cannot pay in full, ensure to make the minimum payment due.\u00a0<\/p><\/div><h4>Will a store card help me build credit?<\/h4><div class=\"faq_inner\"><p>Yes, you can build credit with a store credit card.\u00a0<\/p><\/div><h4>Can a prepaid card build credit?<\/h4><div class=\"faq_inner\"><p>No, you cannot build credit with prepaid cards because they do not report to credit bureaus.\u00a0<\/p><\/div><h4>How can I track my credit-building efforts?\u00a0<\/h4><div class=\"faq_inner\"><p>You can keep track of your credit-building efforts by checking your credit score monthly.\u00a0<\/p><\/div><\/div>","protected":false},"author":27398,"featured_media":35746,"comment_status":"open","ping_status":"closed","template":"","meta":{"disable_branded_featured_image":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ep_exclude_from_search":false,"footnotes":""},"categories":[10],"_links":{"self":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/how_to\/34708"}],"collection":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/how_to"}],"about":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/types\/how_to"}],"author":[{"embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/users\/27398"}],"replies":[{"embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/comments?post=34708"}],"version-history":[{"count":49,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/how_to\/34708\/revisions"}],"predecessor-version":[{"id":44040,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/how_to\/34708\/revisions\/44040"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/media\/35746"}],"wp:attachment":[{"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/media?parent=34708"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financer.com\/wp-json\/wp\/v2\/categories?post=34708"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}