How Long Does It Take to Build a 720 Credit Score?

A 720 credit score is considered excellent by credit bureaus like FICO and VantageScore But getting to a score of 720 takes time and effort. So how long does it really take to build a credit score of 720?

The timeline varies considerably based on your starting score and credit history. With diligent work some may reach 720 within 6 months, while others may need a few years.

Let’s first understand what makes up your credit score and the factors that influence how quickly you can improve it.

What Goes Into Your Credit Score?

The two most common credit scoring models – FICO and VantageScore – both use a scale of 300 to 850. Higher scores indicate lower credit risk.

According to FICO, the breakdown of factors determining your score is:

• Payment History (35%) – History of on-time payments for credit accounts, loans, etc.

• Credit Utilization (30%) – Ratio of credit balances to credit limits.

• Length of Credit History (15%) – How long you’ve had credit accounts opened.

• New Credit (10%) – Number of new accounts and credit inquiries.

• Credit Mix (10%) – Variety of credit accounts – installment loans, credit cards, mortgage, etc.

For VantageScore, the factors are slightly different but generally similar. Focusing on the major factors above will help boost your score.

How Long Does It Take to Reach 720?

It’s impossible to give an exact timeline because everyone’s financial profile is unique. However, here are some estimates based on your starting score:

• Starting Score: 300-549 – Expect 1.5 to 2 years to reach 720. This assumes you have no major negative marks and start building/improving credit right away.

• Starting Score: 550-599 – About 1 to 1.5 years if you have a thin credit file. Up to 6 months if you already have a decent history.

• Starting Score: 600-649 – Around 6 months to 1 year. You already have a base to build on.

• Starting Score: 650-700 – 3 to 6 months by optimizing your credit mix and keeping balances low.

• Starting Score: 700-719 – 1 to 3 months simply by reducing balances and minimizing hard inquiries.

Essentially, the higher your starting score, the less time it takes to reach 720. But regardless of where you begin, getting to 720 requires diligent effort.

Strategies to Reach 720 Faster

Here are 5 proven strategies to help you reach a credit score of 720 more quickly:

1. Always Pay On Time

Payment history being the biggest factor, set up autopay for credit card and loan bills. Even a single 30-day late payment can drop your score by over 100 points.

2. Keep Balances Low

Ideally, keep credit card balances under 10% of the limit. High balances hurt your credit utilization ratio. Pay off cards with the highest balances first.

3. Become an Authorized User

Ask a friend or family member with good credit to add you as an authorized user. It builds your credit history.

4. Limit Hard Inquiries

Each application for credit results in a hard inquiry, so apply sparingly. Too many inquiries short-term can lower your score.

5. Monitor Your Credit

Check your credit reports and FICO/VantageScore every 2-3 months. It helps you pinpoint where to focus your efforts.

Maintaining a 720 Score

Reaching 720 is an achievement, but staying there requires ongoing good credit habits:

• Make payments on time each month for all accounts
• Keep credit utilization low across all cards
• Have a good mix of credit types – installment loans, credit cards, mortgage, etc.
• Minimize new credit applications and hard inquiries
• Monitor your credit reports regularly for errors

The Benefits of a 720 Credit Score

Achieving a score of 720 unlocks several benefits:

• Easier approval odds for top credit cards and loans
• Ability to qualify for lowest interest rates from lenders
• Higher credit limits approved on credit cards and loans
• Increased leverage in negotiating favorable loan terms
• Option to rent apartments without paying large security deposits

So while building a credit score of 720 takes diligence and patience, it’s well worth the effort. Stay focused on good financial habits – the higher score will follow.

An 18-year-old doesn’t start with a specific credit score. Instead, they will either have no credit history or be considered “credit invisible” until they begin using credit and building a record.