How long does it take to build up credit?
2 years of clean repayment at a certain level. How large is that credit card? $1000? With 2 years of clean repayment you will have established your credit at the $1000 to $2000 mark (as a rule of thumb, banks will often go 1.5x to 2x your current highest account). Now lets say you increase the limit on that bad boy to $5000 after 2 years (you scored a good job and they think you can handle it). The good news is it will look like you’ve had that 5K credit card for 2years on the Bureau … effectively established you are the $5000 – $10,000 level. Now lets say you don’t want an increased limit because you’re concerned if someone steals your info they can spend a lot of money or maybe you don’t trust your own spending habits … you can apply for another card. However when they pull the Bureau they’ll see that you’ve established yourself at the $1000 – $2000 range. Unless they want to take business away from the other bank, it is doubtful they will go beyond that. And on and on it goes. N
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