 TITLE: A Guide to Establishing Credit for the First Time CONTENT: How Long Does It Take to Establish Credit?\n------------------------------------------\nYour credit file is established as soon as your first account gets reported to the credit bureaus. However, building good and useful credit can take some time. For example, FICO can't score a credit report that doesn't have an account that's at least six months old. In addition, if you have fewer than five credit accounts, also known as having a thin file, lenders may not be able to assess your creditworthiness.\nBecause the age of your accounts is a credit scoring factor, the longer you've had open and active accounts, the better (assuming you've been making on-time payments). While this takes time, you're making a long-term investment in your financial future and establishing credit while you're young—which is better than waiting until you need to apply for a rental apartment or loan.\nHow to Monitor Your Credit\n--------------------------\nOnce you've begun establishing credit, you may want to sign up for a credit monitoring service that can help you track changes in your credit reports. You can pay for this service or use a free option, such as Experian's free credit monitoring service, which gives you access to your Experian credit report every 30 days. AnnualCreditReport.com offers one free report every 12 months from each of the three credit bureaus.\nMonitoring your credit is important because if there's a new inquiry or account on your report that you don't recognize, that could be an indication that someone is using your identity to fraudulently open accounts. You'll want to act quickly to file a dispute and resolve the matter.  \nDon't Wait—Start Now\n--------------------\nBy this point, you probably realize why your credit is important and the benefit of establishing your credit as early as possible. The next step is to decide which type of accounts you want to open and how you're going to make sure you can make on-time payments and monitor your progress. Then you'll be on the road to financial independence. END