How to Build a Credit Score from 0 to 750 | Fi Money (2024)

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How to Build a Credit Score from 0 to 750 | Fi Money (12)

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How to Build a Credit Score from 0 to 750 | Fi Money (13)

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How to Build a Credit Score from 0 to 750 | Fi Money (14)

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Sayan Das

Sayan Das

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July 26, 2023

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July 26, 2023

A credit score is a 3-digit number that typically ranges from 0 to 750. It gives lenders and credit facility providers valuable information about your creditworthiness. You may have a zero credit score if you have never availed of any credit facility, or if you have failed to repay what you’ve borrowed thus far.

So, how do you go about building your credit score to 750 from scratch?

Zero to 750: Building Up Your Credit Score

It is important to have a good credit score because lenders and credit card issuers look at this number as a primary indicator of your eligibility. Furthermore, some employers and even landlords may require a credit score check as a part of their assessment procedures. So, having a good credit score can bring in a host of benefits, which is why you need to actively commit to improving your score.

3 Underrated Ways to Build a Credit Score from Zero to 750

The surest way to build your credit score from zero to 750 is to create a good credit history. The following underrated ways can also help you improve your credit score.

1. Apply for a Secured Credit Card

A secured credit card is issued against a deposit held with the issuing bank. The credit limit on the card depends on the amount of deposit made. You can apply for this kind of credit card if you are eligible for one, and use the credit card to make purchases and pay your bills. And as you repay your dues promptly each month, you can boost your credit score from zero.

2. Become an Authorised User

If you do not have any deposit, you can still use a credit card to improve your credit score. This involves becoming an authorised user on another person’s credit card. The person can be your parent, spouse or any other relative with a good credit score. You can use their card and repay the dues on time to build your credit history. Just ensure that the card issuer reports your activity to the credit rating agencies.

3. Avail of a Secured Loan

A secured loan (like a home loan or a gold loan) allows you to borrow funds against an asset you own. You can make use of this facility to borrow funds for different purposes, and pay the dues as per the lender’s repayment schedule. Regular and consistent EMI repayments will help you build up your credit score to 750 from zero over time.

Monitor Your Credit Score with Fi Money

When you implement the strategies explained above and diligently repay any loans or EMIs that are due, you can improve your credit score steadily over time. And once your credit score improves, you will find it easier to avail of other credit facilities — such as instant pre-approved loans from Fi Money and the Fi-Federal Credit Card. With consolidated spend insights, you can easily track your spending and make informed financial decisions.

Frequently Asked Questions

1. What are the three underrated methods to establish a credit score from scratch and achieve a score of 750?

To build a credit score of 750 from zero, you can get a secured credit card, be added as an authorised user on your parent’s or spouse’s credit card, or obtain a secured loan. That said, you can only build your credit score from zero to 750 if you pay all your dues on time.

2. Are these underrated ways equally effective for individuals with no prior credit history or those with a limited credit history?

Yes, you can use the measures outlined above to build your credit score if you have no prior credit history, or if your credit history is limited

3. How long does it typically take to see noticeable improvements in the credit score by implementing these methods?

Credit card issuers and lenders share your repayment details with credit rating agencies every month or every quarter. So, if you adopt the strategies outlined above and consistently repay your dues, you can start to see a difference within a few months. However, it may take longer to go from a zero credit score to 750.

4. Can these underrated strategies also help in building a strong credit profile for future loan and credit card applications?

Yes, lenders and credit card issuers look at your previous repayment history to assess your eligibility. So, you can build a strong credit profile to avail future credit.

5. Are there any potential risks or pitfalls to be aware of when using these lesser-known techniques to build a credit score?

Simply obtaining a secured credit card or a secured loan is not going to improve your credit score. You need to diligently repay your dues and keep your credit utilisation ratio below 30% to see noticeable improvements.

How to Build a Credit Score from 0 to 750 | Fi Money (2024)

FAQs

How to go from 0 to 750 credit score? ›

Thanks!
  1. Make Payments on Time. ...
  2. Avoid Closing Old Accounts. ...
  3. Add Rent and Utilities to Your Credit Report. ...
  4. Increase Your Credit Limit. ...
  5. Make Small Purchases With Your Credit Cards. ...
  6. Pay Off Your Maxed-Out Credit Cards. ...
  7. Don't Open Too Many New Accounts at Once. ...
  8. Be Aware of the Rate-Shopping Window.
Sep 7, 2023

How fast can I build my credit from 0 to 700? ›

Starting with zero credit history, you can establish credit in as little as six months. Achieving a "good" credit score of 700 or better usually requires making timely payments for at least 18 months to two years, but it's possible to find shortcuts.

How can I build my credit fast from 0? ›

7 Ways to Build Credit if You Have No Credit History
  1. Become an authorized user.
  2. Try a credit-building debit card.
  3. Apply for a secured credit card.
  4. Apply for a credit-builder loan.
  5. Apply for a store credit card.
  6. Have rental payments reported.
  7. Establish credit with Experian Go™
Feb 13, 2024

How long does it take to get from 0 to 800 credit score? ›

Credit History Matters

The longer you've been using credit, the more it means to your credit score. Members of the 800 Club average just under 22 years of using credit. Even the youngest ones, Millennials, average more than 14 years.

How to raise your credit score 200 points in 30 days? ›

Try paying debts and maintaining your credit utilisation ratio of 30% or below. There are two ways through which you can pay off your debts, which are as follows: Start paying off older accounts from lowest to highest outstanding balances. Start paying off based on the highest to lowest rate of interest.

How can I raise my credit score 100 points overnight? ›

5 Ways to Boost Your Credit Score Overnight
  1. Review Your Credit Reports and Dispute Errors.
  2. Pay Bills On Time.
  3. Report Positive Payment History Like Utilities to Credit Bureaus.
  4. Keep Old Accounts Open.
  5. Keep Your Credit Balances Under 30%
Jun 26, 2024

Is 650 a good credit score? ›

As someone with a 650 credit score, you are firmly in the “fair” territory of credit. You can usually qualify for financial products like a mortgage or car loan, but you will likely pay higher interest rates than someone with a better credit score. The "good" credit range starts at 690.

What is the fastest you can build credit? ›

One of the fastest ways to build credit is by becoming an authorized user on someone else's card, like a family member or close friend. You can piggyback off the primary cardholder's credit and establish your credit history.

How can I boost my credit score fast? ›

What actions you can take to boost your credit scores?
  1. Review your credit reports for errors and dispute any inaccuracies. ...
  2. Keep paying your bills on time. ...
  3. Improve your credit mix. ...
  4. Improve credit utilization. ...
  5. Read more.

How to get 999 credit score? ›

Build a credit history
  1. Open and manage a current account responsibly, sticking to any agreed overdraft limit.
  2. Pay your bills on time; consider using Direct Debits to avoid missed payments.
  3. You could apply for a credit builder credit card and pay it off in full each month.
Jan 2, 2024

Can a 16 year old build credit? ›

You may be able to help your teen build their credit before they're 18 by adding them as an authorized user on your credit cards. That's if the card issuer reports information to the credit bureaus and the credit bureaus include that information on credit reports.

How to get 0 credit score? ›

Fortunately, no one's credit score can equal zero – the range for FICO scores is 300-850 – and even people with poor or bad credit have a credit score of at least 300. A “no credit score” means there is insufficient information for a credit score calculator to compute a score.

What is a perfect credit score? ›

A perfect credit score of 850 is hard to get, but an excellent credit score is more achievable. If you want to get the best credit cards, mortgages and competitive loan rates — which can save you money over time — excellent credit can help you qualify.

What is the starting credit score? ›

Most people's initial credit scores are between 500 and 700 points, depending on the steps taken when establishing credit. However, you won't have a credit score to report if you've never opened a credit account.

How rare is an 800 credit score? ›

According to a report by FICO, only 23% of the scorable population has a credit score of 800 or above.

How long does it take to get a 850 credit score from 0? ›

A score of 850 can only be achieved with 10+ years of credit, excellent on-time payment history, low credit utilization, and no recent hard inquiries, which is a tall ask.

How long does it take to get 750 credit? ›

If your score is between 650 and 700, you have a consistent payment history and low credit utilisation, it may take only a few months to reach a score of 750. However, if you have a poor credit score, missed payments, high credit utilisation, and derogatory marks on your credit report, it could take several years.

How rare is a 750 credit score? ›

Twenty-four percent have a FICO® Score between 750 and 799, making the "very good" bracket. Data source: FICO (2022). Nearly half of Americans score between 750 and 850, in the very good to exceptional range, while less than 25% of Americans have a score between 300 and 649, the poor to fair credit score range.

Is 800 credit score easy? ›

Your 800 FICO® Score falls in the range of scores, from 800 to 850, that is categorized as Exceptional. Your FICO® Score is well above the average credit score, and you are likely to receive easy approvals when applying for new credit. 21% of all consumers have FICO® Scores in the Exceptional range.

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