Discover Credit Card Review: A Review Of Its Advantages And Specifics

January 7, 2019 by  
Filed under Credit card

Many people wonder what the best credit option is that will give them the most for the money they will be spending.  Several will give you cash-back and other good features such as low interest rates, but what card on the market is truly the best?

Known for its excellent cash-back rewards, the Discover It Card also has great perks and a 0% APR introductory period. At the end of your first year, Discover will match all the cash-back you have received up to that point. In this Discover credit card review, we will discuss the pros and cons of the Discover It Card, and we will look into the details of similar credit cards so you can determine which might be best for you based on comprehensive and comparative information.

 

About the Discover Credit Card

The Discover credit card offers 5% cash-back on rotating categories you activate with up to $1,500 in spending per quarter plus 1% cash-back on all other purchases. While the cash-back is a huge advantage for users, the sign-up bonus truly distinguishes this card from the rest; Discover will match all cash-back you've earned in the first year, with no limits on how much you can earn. The card also offers a free FICO score, access to Discover's free social security number monitoring, and zero transaction fees.

 

Product Specs  

In discussing the excellent cash-back features of this card, you can redeem your rewards for direct deposits into any account, statement credits on your credit card, donations to select charities, shopping at Amazon, gift cards, and e-Certificates. The Discover credit card also offers a 0% APR period, which gives you a breath of fresh air upon opening your new account. After 14 months, there is an ongoing 13.99% to 24.99% variable APR. Also, the balance transfer fee is 3% of the amount transferred.

 

Pricing  

The Discover credit card has a $0 annual fee. With its 0% APR period during the first 14 months of use, this makes it a user-friendly and inexpensive credit card choice. There are no foreign transaction fees, making it an ideal choice for travel when foreign banks accept a Discover credit card.

 

How It Compares 

We picked a few similar credit-card products available on the market, and we used a 5-star rating system so you can see how the cards compare.     

TITLE

ONGOING APR

ANNUAL FEE

BALANCE TRANSFER FEE

CASH BACK RATE

Discover it®

Chase Freedom®

Citi® Double Cash Card

Capital One® Quicksilver® Card

 

Discover it®


Intro APR 

During the first 14 months of use, you can enjoy a 0% APR period on purchases and balance transfers. This is a great introductory offer for a credit card.

Ongoing APR         

After the initial period following your new account opening, the ongoing APR rises to 13.99% to 24.99% Variable APR. We gave it 4 out of 5 stars for its ongoing APR.

Annual Fee

The Discover credit card has a $0 annual fee, making it a standout option compared to similar credit cards. We gave it 5 out of 5 stars for its nonexistent annual fee.

Balance Transfer Fee

During the first 14 months of use, the balance transfer fee begins at 0%. Following the introductory period, the balance transfer fee is 3% of the amount transferred. We gave 5 out of 5 stars for its introductory perk of no balance transfer fee and its following low transfer fee.

Cash-Back Rate

The Discover credit card offers to match all cash-back you earn the first year of use. This is an excellent perk, especially if you put your new card to good use. Further, it offers 5% cash-back on rotating categories. However, you must activate the category to take advantage of the cash-back opportunity, as it is not automatic. Also, you will automatically receive 1% cash-back on all other purchases outside of activated categories. 

We gave it 4 out of 5 stars for its beginning perks and its 5% cash-back on rotating categories while also recognizing the 5% quarterly earnings are not automatic.

Pros

  • $0 annual fee     
  • Matching cash-back after the first year of use
  • Introductory 0% APR period
  • No foreign transaction fees

Cons

  • Must activate cash-back rewards in quarterly categories, they are not automatic
  • Cards not accepted everywhere within the US or abroad
  • Cash-back matching only lasts for the first year of use
  • Cannot stack points from other frequent flyer programs

 

Chase Freedom®


The Chase Freedom card stands apart for its 2 primary perks: a $150 introductory bonus and a large network. Chase belongs to the largest card network within the United States, Visa, and has international acceptance. You can earn the introductory bonus after spending $500 within the first 3 months of opening your account. This Chase card has no annual fees and broad bonus categories offering 5% cash-back rewards in quarterly bonus opportunities, along with 1% cash-back on all other purchases.


Intro APR 

There is a 0% APR period on purchases and balance transfers during the first 15 months of use.

Ongoing APR

After the 15-month introductory period, there's a variable APR of 16.99- 25.74%. We gave this card 4 stars for its ongoing APR amount.

Annual Fee - 5 stars

The Chase Freedom card has no annual fees. 

Balance Transfer Fee

After the first 15 months of 0% Intro APR for balance transfers, it increases to a 5% transfer fee of the amount transferred with a $5 minimum. 

Cash-Back Rate

You can earn 5% cash-back on up to $1,500 in purchases in activated bonus categories each quarter. Further, you can enjoy new 5% categories each quarter. You also earn an automatic 1% cash-back reward on all other purchases. Further, cash-back rewards do not expire as long as your account is open, and there is no minimum to redeem cash-back. We have given this section 4 stars for its introductory $150 bonus (after spending $500 within the first 3 months), while also acknowledging you must activate categories to earn the 5% cash-back rewards.

Pros

  • No annual fees
  • Part of Visa and widely accepted in the U.S. and abroad
  • $150 introductory bonus when you spend $500 within the first 3 months

Cons

  • International transaction fees when used abroad
  • Must activate 5% cash-back rewards on quarterly categories (it is not automatic)
  • Not as great cash-back rewards as similar credit cards


Citi® Double Cash Card


The Citi Double Cash Card has a simple and effective rewards structure where you receive 1% cash-back on all purchases plus an additional 1% cash-back when you pay your bill. While you need to "activate" categories for both the Chase and Discover cards, the 2% cash-back from the Citi credit card is automatic. There are no annual fees, no categories to track, and no caps on cash-back rewards.

Intro APR

For the first 18 months after opening a Citi account, you receive 0% APR on purchases and balance transfers.

Ongoing APR

After the 18-month introductory period, there is a variable APR of 15.49- 25.49%. We have given this card 5 out of 5 stars for its long introductory period and its relatively lower ongoing APR amount.

Annual Fee

There is no annual fee for the Citi Double Cash Card.

Balance Transfer Fee

After the initial 18 months of 0% balance transfer fee, there is a balance transfer fee of 3% or $5, whichever amount is greater. We gave this section 5 stars for its 0% balance transfer fee for the first 18 months of use.

Cash-Back Rate

The cash-back opportunities with the Citi card make it so special — you will receive 1% cash-back when you make a purchase and then an additional 1% when you pay off your card's balance. There are no caps for cash-back rewards.

Pros

  • No need to “activate” categories to receive great cash-back
  • Automatic 2% cash-back: 1% when you purchase and 1% when you pay off your card’s balance
  • No annual fee and no cap on cash-back rewards

Cons

  • No sign-up bonus
  • There are transaction fees when you travel abroad
  • Balance transfer fees do not earn cash-back

 

Capital One® Quicksilver® Card

The Capital One Quicksilver card is great for consumers who are looking to earn automatic rewards for all of their purchases with no need to "activate" any categories. It is hassle-free and simple, and it has the extra perks of no annual fee, no transaction fees, and a $150 sign-up bonus. This is a great option for those looking for automatic rewards with no need to do anything. However, if you are seeking the extra 5% reward opportunities, you will want to investigate other card opportunities that offer higher rewards.

Intro APR 

For the first 15 months after opening a Capital One Quicksilver card account, you receive 0% APR on purchases.

Ongoing APR

After the initial 15 months, there is 14.74%- 24.74% variable APR.

Annual Fee

There is no annual fee associated with a Capital One Quicksilver card.

Balance Transfer Fee

There is a 3% transfer fee for all purchases, even during the first 15 months. We have given this 2 out of 5 stars since other comparable cards offer a 0% transfer fee during the introductory period of 0% APR.

Cash-Back Rate

When you initially open a Capital One Quicksilver account, you receive a $150 cash bonus after spending $500 during the first 3 months of the account opening. Further, with the Capital One Quicksilver card, you receive unlimited 1.5% cash-back rewards on all purchases. There is no need to "activate" categories, as the 1.5% cash-back is automatic. We have rated this section as 4 out of 5 stars for its sign-up bonus and automatic cash-back rewards.

Pros

  • No foreign transaction fees
  • Automatic and unlimited 1.5% cash-back on all purchases
  • No annual fee

Cons

  • 3% transfer fee during the introductory period
  • No special categories for 5% cash-back rewards
  • Must have excellent credit


Conclusion


Ultimately, we have rated the Discover It card as 4 out of 5 stars for its matching rewards program, its 5% cash-back rewards, its $0 annual fee, its lack of foreign transaction fees, and its 14-month introductory period of 0% APR. The only negative we found with this card is the need to "activate" the 5% rewards and the low 1% cash-back you receive on all other purchases. As a summary of all of our findings, we discovered the following standout details for each of the 4 credit cards we reviewed for this article:

  • The Discover It Card sets itself apart by its matching of all cash-back received within the first year of opening an account. Further, it offers 5% cash-back on rotating categories, as long as you “activate” them.
  • The Chase Freedom card provides a $150 sign-up bonus, it enjoys wide acceptance within the United States and abroad, and offers 5% cash-back rewards during quarterly bonus opportunities. While this card has no annual fees, it has international transaction fees and requires you to “activate” categories to earn cash-back rewards.
  • The Citi Double Cash card is an automatic cash-back rewards card that requires no hassle. It provides 2% cash-back on all purchases without the need to “activate” categories. It has an 18-month 0% APR introductory period, which is the longest introductory period of all the cards discussed in this review.
  • The Capital One Quicksilver card is another automatic cash-back rewards card. The advantage this card offers is no foreign transaction fees, and it also has a sign-up bonus of $150, both of which are absent in the Citi Double Cash Card. However, as mentioned before, the Citi card offers 2% cash-back on all purchases versus the 1.5% that this Capital One card offers.

 All 4 of the credit cards we reviewed in this article are popular choices and depending on whether you want a no-hassle card or the ability to gain the most rewards, you can choose the option that will make the most financial sense in your life.

An In-Depth Review And Analysis Of Southwest Credit Card

January 2, 2019 by  
Filed under Credit card

The Southwest credit card is a great deal for those who frequently fly with Southwest and want to earn great rewards with their air travel. While you can use your points towards a variety of items, the best way to utilize your points is to spend them on Southwest or AirTrain flights. In this review, we will discuss the pros and cons of the Southwest credit card and compare it to similar credit cards so you can better decide whether the Southwest credit card is right for you.

About the Southwest Rapid Rewards® Premier Credit Card


The Southwest Rapid Rewards Premier Business Credit Card comes with a 60,000 point sign-up bonus and 6,000 anniversary points. It has a 0% foreign transaction fees, you can earn 2 points per $1 spent on Southwest, and you can earn 1 point on everything else. The Southwest credit card partners with the Chase network and involves a $99 annual fee for membership.


Product Specs  


You can redeem your Southwest points for anything, including flights, car rentals, products, gift cards, and more. While you can use your points to buy products, gift cards, and other prizes, it is better to spend them on Southwest or AirTran flights, as you can optimize your point expenditure. One bonus to the Southwest credit card is the sign-up bonus, where new members earn 40,000 points after spending $1,000 in the first 3 months of new membership, plus 20,000 after spending $12,000 in the first year. You can qualify for either or both.


Pricing  


The Southwest Rapid Reward card costs an annual fee of $99.


How It Compares 


We picked a few similar products available on the market to see how they compare.     

TITLE

APR

ANNUAL FEE

REWARD BONUS

REWARD RATE

Southwest Rapid Rewards® Premier Credit Card

JetBlue Plus Card

Capital One® Venture® Rewards Credit Card

Barclaycard Arrival® Plus World Elite Mastercard®


Southwest Rapid Rewards® Premier Credit Card


APR

The Southwest Rapid Rewards Premier Business Credit card as an APR of 17.99% to 24.99%. We have given this section five out of five stars.

ANNUAL FEE:

This Southwest credit card has an annual fee of $99. We have given the annual fee a rating of three out of five stars.

REWARDS BONUS:

The biggest benefit of the Southwest card is the initial bonus. If you hit the spending threshold of $1,000 in the first 3 months, you receive 40,000 Southwest Rapid Reward points, which can buy at least 1 round-trip flight. You can earn an additional 20,000 points after spending $12,000 in the first twelve months of your account opening. Additionally, Southwest offers 6,000 anniversary points. We have given the rewards bonus a rating of five out of five stars for its spectacular welcome deal.

REWARDS RATE:

You can spend your points on flights, car rentals, products, gift cards, and more. The best way to maximize the value of your points it to spend them on Southwest or AirTran flights. You should remember that point values are dynamic and change constantly for various routes. We have rated the Southwest credit card as four out of five stars for its rewards rate.

Pros

  • 40,000 reward points upon account opening
  • Potential for 60,000 bonus points 
  • 2 points for every $1 spent on Southwest
  • No foreign transaction fees

Cons

  • $99 annual fee
  • Low point accumulation for purchases outside of Southwest
  • Points best spent on additional Southwest purchases
  • Cannot stack points from other frequent flyer programs

JetBlue Plus Card


The JetBlue Plus Card offers a lot of perks in addition to its 1 to 6 point earnings on purchases, including a free checked bag for you and up to 3 companions, an annual $100 statement credit after purchasing a JetBlue Vacations package of $100 or more, no blackout dates, 50% savings on in-flight purchases, and more. Additionally, through this card, you can enjoy no change or cancellation fees, bonus points, and more benefits after spending $50,000 or more on purchases each calendar year. Also, the JetBlue Plus Card has no foreign transaction fees.


APR:

There is an initial Transfer Intro APR of 0% for 12 months. The regular APR is 17.99% to 26.99% with a 3% balance transfer fee (and a minimum of $3). We have rated this section as four out of five stars for its 0% initial transfer intro APR and for its higher range of regular APR.

ANNUAL FEE:

The JetBlue Plus Card has a $99 annual fee. We have rated this as 3 out of 5 stars.

REWARDS BONUS:

When you open an account with the JetBlue Plus Card, you earn 40,000 TrueBlue bonus points after you spend $1,000 on purchases within the first 90 days. Additionally, you can receive 5,000 bonus points every year after your account anniversary. We have given this section five out of five stars for its annual 5,000 bonus points after the account anniversary as we appreciate the continual bonuses even after the initial welcome period.

REWARDS RATE:

With the JetBlue Plus Card, you can earn 6 points for every $1 that you spend on JetBlue purchases plus 2 points per every $1 spent at restaurants and grocery stores. You receive 1 point for every dollar spent on other items. Additionally, you receive 10% of your point back every time you redeem to use toward your next redemption. You also receive 50% savings on in-flight purchases. We have given the rewards rate five out of five stars.

Pros

  • Potential earning of 6 points per every $1 (when spent on JetBlue)
  • 40,000 bonus points during the introductory period
  • Annual 5,000 bonus points after account anniversary

Cons

  • $99 annual fee
  • Higher APR range
  • Not ideal if you fly a wide variety of airlines

Capital One® Venture® Rewards Credit Card


The Capital One Venture Rewards credit card allows you to earn two times the miles on every purchase with no blackout dates. You can earn up to ten times the number of points on many hotels as well, and this card is not limited in its earnings. It has a high rewards rate, flexible rewards redemption, and a great sign-up bonus.


APR: 5 STARS

This card does not offer any specials on purchase intro or transfer intro APR. The regular APR is 14.74% to 24.74%. We have given it five out of five stars for its lower APR.

ANNUAL FEE: 

This card has a $0 annual fee for the first year, followed by a $95 fee afterward. We have rated this four out of five stars for its initial $0 annual fee.

REWARDS BONUS:

The Capital One Venture Rewards credit card offers an initial, one-time bonus of 50,000 miles once you spend $3,000 on purchases within 3 months. Additionally, you can receive up to $100 application fee credit for Global Entry or TSA pre-check. We have rated the rewards bonus for this card as four out of five stars.

REWARDS RATE: 

With the Capital One Venture Rewards credit card, you can earn two times the miles on every purchase, every day. Additionally, you earn ten times the miles on thousands of hotels. You can fly any airline and stay in any hotel, and there are no blackout dates. Miles will not expire for the life of the account, and there is no limit to how many you can earn. It was named “the best travel card” by CNBC in 2018. Further, there are no foreign transaction fees. We have given the rewards rate five out of five stars.

You can redeem your miles for travel through the issuer’s travel center to find deals on flights, hotels, rental cars, or vacation packages. You can also book your travel elsewhere and use the Capital One Purchase Eraser to get a statement credit for the cost.

Pros

  • Miles do not expire and there is no limit to the number you can earn
  • Earn points through multiple airlines and hotels
  • No annual fee for the first year

Cons

  • Annual fee after the first year of use
  • Redemption value for cash is half that of travel
  • No travel partners to earn additional rewards

Barclaycard Arrival® Plus World Elite Mastercard®


The Barclaycard Arrival Plus World Elite Mastercard allows you to use your rewards for any airline, seat, or hotel and redeem your miles for travel statement credits. Further, your miles will never expire as long as your account is open, and you have no foreign transaction fees when using the card. Further, it has an international chip and pin for terminals around the world, and it has a $0 fee for the first year of membership.


APR:

There is no purchase intro APR, but there is 0% transfer intro APR for 12 billing cycles. The balance transfer fee is typically 3%, with a $5 minimum, and the regular APR is 17.99% to 24.99%. We have rated this four out of five stars.

ANNUAL FEE: 

There is no annual fee during the first year, and then there is an annual fee of $89 every year after that. We have rated this four out of five stars.

REWARDS BONUS:

The Barclaycard Arrival offers 70,000 bonus miles after you spend $5,000 on purchases within the first 90 days. While that is a lot of initial bonus points, it requires a big expenditure within the first 90 days of account opening. We have rated the rewards bonus as three out of five stars.

REWARD RATE: 

With the Barclaycard, you can earn two times the miles on every purchase. Furthermore, you can redeem your miles for travel statement credits with no airline or hotel restrictions. Miles do not expire as long as long as your account is open. We have given this four out of five stars.

Pros

  • Great rewards for general spending, regardless of where you shop
  • You can earn two miles per $1 on all your purchases plus 5% back when your rewards are redeemed towards travel expenses rewards for travel
  • 70,000 bonus points after you spend $5,000 on purchases within the first 90 days

Cons

  • $89 annual fee after the first year of membership
  • High redemption threshold where you have to spend $5,000 to earn rewards and miles
  • Fewer travel freebies and perks since it does not have travel affiliations as an independent card entity


Conclusion


After reviewing the Southwest credit card and its similar competitors, we have rated it an overall four out of five stars. We think that it stands apart for its initial 40,000 bonus points plus an additional 20,000 bonus point earning potential. Further, we appreciate its annual 6,000 anniversary points reward. We have not given it five stars due to its annual fee, it lows point rewards for purchases outside of Southwest, and its inability to stack points from other frequent flyer programs. Ultimately, if you fly through Southwest airlines frequently, we think that this is a great credit card for you.

If you are a frequent traveler that is not committed to any particular airline, we recommend that you investigate the Capital One Venture Rewards card or the Barclaycard Arrival Plus World Elite Mastercard. Both cards are more flexible in their rewards for various airlines and hotels, and both offer a $0 annual fee during the first year of membership.

If you frequently fly JetBlue instead of Southwest, we recommend that you look into the JetBlue Plus Card. The one advantage that this option has over the Southwest credit card is the extra perks, including the discount on in-flight purchases, the potential for no cancellation or change fees and the free checked luggage for yourself and up to three companions.

Ultimately, the choice of card that you pick depends on what type of travel you use frequently. If you are devoted to one particular airline that changes the paradigm. However, if you love to travel with no foreign transaction fees and great flight rewards, we recommend that you pick the card that is best for you depending on your travel style.

How Long Does It Take to Build Credit – Tips And Guides To Build Credit

January 2, 2019 by  
Filed under Credit Report, Resources

Your credit score is one of the most important numbers in your life. Aside from your social security number, this is probably the one number you must monitor and protect most rigorously. How long does it take to build credit? That’s a question many young people ask, and it’s very important.

While you might assume that never using credit is the best way to live, you would be incorrect to a certain degree. If you have the cash to pay for a home or a car outright, you don’t need credit. However, did you know that many employers look at your credit score prior to hiring someone for a job? Did you know it’s difficult to rent a car without a credit card in many instances?

Again, how long does it take to build credit? That’s a question without one specific answer. It takes months to build some credit history, but it takes years to build excellent credit. The process and requirements also depend on your age, what resources you’re using to build your credit, and which major credit bureau you’re trying to build credit with.

As you can see, there’s a lot to consider when working on building your credit score, and that’s why there are so many variables associated with this kind of situation. This article presents basic information you need to know about building credit and how long it may take for you.

 

Why Should You Build Credit? 


How long does it take to build credit, and why should I even bother? You might be asking yourself both questions right now. Many people have been taught that using credit is a bad, risky decision because credit cards cause debt. Loans cause debt. Buying a car causes debt, and what if you’ll never be able to afford to live with all that debt?

These statements don't reflect most people's experience. It’s not about the card or the loan or the car, but about you and your ability to repay those obligations. If you get a credit card and max it out, get another and max it out, then take out loans to pay off your cards before maxing them out again, and then you buy a car you cannot afford, you’re putting yourself into a disastrous debt position. However, if you use your credit wisely and with intelligence, you won’t fall victim to overwhelming debt.


Why You Need Credit


Here are a few of the most pressing and important reasons many people have to start building credit:

  • To secure a loan
  • To buy a home
  • To buy a car
  • To rent a car or reserve other necessities

There are so many reasons you need credit. Take your pick as to which one is the most important to you. Do you want to buy a car so you can get to and from work when you leave college and get your first real job? You need credit to buy a car. Do you want to buy a home and start your family? You cannot get a loan without building some form and level of credit first.


Travel, Employment, Insurance & More Considerations

If you go on vacation and you want to rent a car, you will be very limited without a major credit card. If a company will rent to you at all, you may be confined to cars of a certain type. You’ll need at least two forms of identification and proof of a round-trip airline ticket, or perhaps two bills or financial documents with your mailing address that are paid and up-to-date. The process is intimidating.

What about that dream job you’re trying to land? Employers don’t know if you might be a risky employee in some respect, so they often look at your credit score to help make a hiring decision. This is especially true of jobs in the financial industry. Employers will not hire someone without evidence that the person is financially responsible.

You have to carry car insurance if you drive. You might not get an affordable rate if you don’t have any credit or an acceptable rating. Better credit scores indicate a less risky driver by insurer standards, which means your insurance company is more likely to offer you more affordable rates.

Can you get through life without credit? Yes, you can, but you should know that you must keep plenty of cash on hand or in an account. You will not receive the best rates on some services and products. It is best to build some credit, and you must learn to use it wisely to prevent yourself from accumulating unaffordable debts.

 

How Long Does It Take to Build Credit?


Let's return to our original point of inquiry: How long does it take to build credit? The answer depends on whether you are starting with no credit and working your way to having credit or if you have bad credit and you want to increase your rating once again. It’s a frustrating situation to find yourself in because there is no quick fix. You can use credit carefully and with good intentions for months and still not have a credit score that lenders consider high or worthy.


Six Months Minimum

Our general answer to the question "How long does it take to build credit?" is six months. If you are going from no credit to some credit, it could take six months before you’re able to generate a score. You should know this score won’t be good yet, either. By that, we mean that it will not be a high score. It will probably fall into the fair range, but your continued efforts can turn that into a more positive score.

Sometimes It Takes Years

If you have a negative credit history, it might take years to raise your score. The problem is that, whether due to hardship or mismanagement, credit bureaus and lenders view you as an unreliable, risky credit user. If you now have a bad credit score because you missed payments, defaulted on loans or cards, lost a car or home, or anything like that, it can take years to raise your score. Once you make a mistake, it’s there for a long time. Depending on the type of obligations you have been unable to meet, these problems can affect your credit score for 7 to 10 years.


Ways to Build Credit Quickly


So, how long does it take to build credit? It takes months, but you may get results a little faster if you take some of these tips and apply them to your situation. If you are in the market to build your credit score quickly from nothing, you do have some options.


Become An Authorized User

If you have parents or family members with good credit, ask if they are willing to make you an authorized user on their credit cards. This means you get to take advantage of their long credit history. You see, when it comes to credit, history matters. If you have no credit, you aren’t going to build a great score in six months. Credit bureaus need to see longer histories before revising their ratings.

Becoming an authorized user on a parent’s account, however, may allow you to pile up years of good credit, on-time payments, and responsible credit use without opening your own accounts. Consider this sequence of events: You may have been a toddler when your mom applied for her card, but now you can build a better score in a shorter time than someone else if she lets you "borrow" some of her long-term credit history.

Know The Secrets

If you are working to build the best score in the least amount of time, it's critical to know what works. For example, simply having a credit card in your name won’t give you good credit. You need to use it, and you should also try to pay it off in full each month. You also need a diverse array of credit if you hope to build a good score.

The best strategy is to apply for a card, use it, and pay it off in full each month. Next, apply for a small personal loan. Pay off more than the minimum amount due each month so you can pay it off ahead of schedule. These steps can help you build credit faster.

Don’t Apply For Everything

The cautionary element covering this entire situation is that you cannot get credit if you don’t apply for credit, but you can ruin your credit if you apply for too much credit. If you don’t have credit now and must ask how long does it take to build credit, one big mistake to avoid is starting to apply for every card imaginable.

Too many inquiries (reports that you applied for credit) can drag down your score quickly. If you don’t have a score yet, it hinders you even more. Our advice is to apply for one or two cards, secure those, and then don’t apply for anything else for a long time. A hard inquiry can appear for a year or two on your credit report, and it drags your score down significantly.

 

Conclusion


How long does it take to build credit? It depends on what you’re working with and whether you take this advice. You can spend years working to build your credit, or you can find out what you need to do right now to make your credit score rise quickly.

It might take months to years to build credit, but it takes no time at all to lower your score and make your life more difficult. Please remember to use your credit wisely. Never allow more than 30 percent of your available credit to revolve. Pay off everything you can in full each month and don’t spend anything you cannot afford to pay back in full right away. Set up automatic monthly payments so you never miss a payment or make a late one.