If you’re considering going solar or investing in your financial future in any way, one big question many people ask is: “How long will it take to build or rebuild my credit?” Knowing where your credit stands is important because it affects everything from loan approvals to interest rates, and yes, even for solar financing. In this article, we’ll break it down with practical timelines, key influencing factors, and concrete steps you can take today.
What do we mean by “good credit”?
“Good credit” can mean slightly different things depending on the scoring model and the lender, but generically:
- A credit score in the “good” range (for example, “good” on the popular FICO model might be ~670–739).
- A clean-ish credit report: on-time payments, reasonable credit use, no recent serious delinquencies or defaults.
- A track record emerging of responsible credit behavior (which matters for lenders, including those for home loans, auto, or solar).
From scratch: How long to generate a credit score and build up history
If you have little to no credit history, the first milestone is simply getting a score, then working toward a “good” credit profile.
Generating your first score
- You generally need at least six months of credit-account activity that’s reported to one of the major bureaus before models like FICO will produce a score.
- Some alternative models (like VantageScore) may generate a score sooner, but the key is: you’re building a credit history.
- So, if you’re just starting out, plan on six months or more before you even have a full score to evaluate.
Reaching “good” credit from no history
- After the score exists, developing it takes months to years. According to one article, reaching a solid score of ~700 might take six months to a year (or longer) for someone new to credit.
- To hit “excellent” (800+) typically takes multiple years of consistently good habits.
- So if you’re starting from scratch, think of a timeline like:
- 0–6 months: establish one or more credit accounts and begin reporting.
- 6–12 months: start seeing improvements if you’re making on-time payments, keeping utilisation low, etc.
- 1–3 + years: build a fuller history (longer account age, well-managed mix, no major negatives) that pushes you into “very good”/“excellent” territory.
Rebuilding credit after damage
If you’re repairing credit (late payments, high utilization, collections, thin file after a default, etc.), the timeline and strategies change somewhat.
What kind of damage matters
- Missed payments (even 30-days late) can stay on your credit report for up to seven years.
- More serious items (charge-offs, bankruptcies) often linger for longer.
- However, the impact of negative marks lessens over time if you engage in positive behaviour.
How long to see improvement
- According to TransUnion (one of the major bureaus): “There’s no fixed time” to rebuild credit, as it depends on your unique profile.
- Some improvements may show in a few months if the damage was limited (for example, high utilisation or a few inquiries) and you immediately implement good habits.
- But if you have major negative items (collections, charge-offs, bankruptcy), full recovery to “good/excellent” may take several years.
What factors most influence how fast you rebuild or build credit?
Here are the major building blocks and why they matter:
- Payment history (largest single factor): Paying on time, every time, is the strongest driver of credit scores.
- Credit utilisation: The ratio of your balances to your credit limits. Keeping it under ~30% (and ideally lower) helps.
- Length of credit history: Accounts that are older help because they show a track record. So even once you build a good score, closing old accounts can hurt.
- Credit mix: Having a variety of credit types (e.g., credit card + installment loan) may help; though this is a smaller factor.
- New credit/inquiries: Opening many new accounts in a short period can hurt by lowering the average age of accounts and showing you may be seeking credit aggressively.
Actionable steps you can start right now:
Because you’re working to build or rebuild, here are practical clean steps that align with good credit behaviour:
- Check your credit reports from the three major bureaus (Equifax, Experian, TransUnion) for free once a year. Dispute any inaccuracies.
- Set up automatic payments or reminders so you never miss a due date. Payment history matters most.
- Keep balances low (preferably under 30% of your limit; under 10% is even better) and pay off the balance monthly (or as often as feasible).
- Consider secured credit cards or credit-builder loans if you’re starting from scratch or recovering. These help establish positive history.
- Don’t rush into many new accounts at once. A couple well-managed accounts beat many poorly-managed ones.
- Keep old, good accounts open (unless there’s a compelling reason to close them, like high fees). Older accounts strengthen your history
- Actively budget and monitor your spending so you don’t overextend yourself. Responsible borrowing is part of good credit management and also aligns with being a financially sustainable member of the community.
You got this!
Building or rebuilding your credit is very much like building a strong foundation for your home. It takes time, consistent care, and smart decisions. But the payoff is meaningful: better access to financing, better terms, and greater freedom to make choices (like going solar, buying a home, starting a business) with confidence.
Every positive step you take – no matter how small – brings you closer to financial independence and peace of mind. Stay patient, stay consistent, and remember that today’s efforts are paving the way for tomorrow’s opportunities.
Sources
- Experian — “How Long Does It Take to Build Credit?” (2025)
- American Express — “How Long Does It Take to Establish Credit?” (2025)
- Edvisors — “How Long to Build Credit?” (2025)
- Investopedia — “How Long Do Late Payments Affect Your Credit Score?” (2025)
- TransUnion — “How Long Does It Take to Rebuild Credit?” (2025)
- Credit.com — “How Fast Can You Rebuild Your Credit?” (2025)
- Consumer Financial Protection Bureau (CFPB) — “How Do I Get and Keep a Good Credit Score?” (2025)
- LendingClub — “How to Rebuild Your Credit in Simple Steps” (2025)
- Chase Credit Journey — “How Long It Will Take to Improve Your Credit Score” (2025)
