How long it takes to repair your credit score depends on what happened to it. If your credit score is low as a result of errors or identity theft, the process could take a couple of months. If you've had financial difficulties leading to late or missed payments, it could take much longer.
How long does it take to correct an error on your credit report?
If your credit score is low, the first thing you should do is check for errors. This might be your own account information being reported incorrectly, the credit bureau confusing you with someone with a similar name or even identity theft.
If you see an error and file a dispute, the credit bureau has 30 days to investigate it. If they need more time, they can extend that deadline by 15 days by notifying you. Once the investigation is complete, they must notify you of the results within five days. If the credit bureau confirms that negative information on your report was inaccurate, it will immediately correct it.
In some cases, the credit bureau may reject your dispute. A common scenario is when an identity thief had so much of your personal information that the credit company believed it was you. In these situations, you will need to repeat the dispute process with additional supporting documentation or pursue further legal action.
How long do credit repair services take?
If you choose to use a credit repair service, they generally do two things. One is disputing errors as outlined above. The other is trying to get accurate negative information removed.
Some creditors will remove accurate negative information as either a goodwill gesture for a long-term customer with a temporary financial problem or in exchange for paying down the debt. One common tactic is a pay-for-delete where you agree to pay all or a portion of the debt in exchange for the creditor removing the delinquent account remark from your credit report.
Creditors have no obligation to remove accurate information from your credit report or to negotiate at all. Policies and procedures vary by creditor but will usually include back-and-forth letters to get everything in writing.
On average, credit repair takes about three to six months. Your score should gradually improve throughout the process each time a creditor agrees to make a change in your favor.
How long does it take to rebuild your credit?
If you have negative items on your credit report that you can't get removed, you will need to repair your credit report by rebuilding positive credit history over time. This includes the basics such as paying on time and not opening too many new accounts.
Most negative items remain on your credit report for seven years. Bankruptcies may remain on your credit report for up to ten years, although many creditors stop reporting Chapter 13 bankruptcies after seven years.
The good news is that credit scoring gives greater weight to more recent activity. So the score hit for negative items will gradually lessen over time rather than you having to wait the full seven to ten years.
Talk to your lawyer
You have important rights under state and federal law to be treated fairly by creditors and to have your credit information reported accurately. If a creditor violates your rights, you may not only be entitled to have them correct your credit report but to also sue them for damages and your attorney's fees. To learn more, ask a lawyer today.
This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.
FAQs
Average Recovery Time
For instance, going from a poor credit score of around 500 to a fair credit score (in the 580-669 range) takes around 12 to 18 months of responsible credit use. Once you've made it to the good credit zone (670-739), don't expect your credit to continue rising as steadily.
How long does it take to build credit from 500 to 700? ›
Average Recovery Time
For instance, going from a poor credit score of around 500 to a fair credit score (in the 580-669 range) takes around 12 to 18 months of responsible credit use. Once you've made it to the good credit zone (670-739), don't expect your credit to continue rising as steadily.
How long does it take to improve credit score 100 points? ›
In fact, some consumers may even see their credit scores rise as much as 100 points in 30 days. Steps you can take to raise your credit score quickly include: Lower your credit utilization rate. Ask for late payment forgiveness.
How to go from 400 to 700 credit score? ›
- 1. Make On-Time Payments. ...
- Pay Down Revolving Account Balances. ...
- Don't Close Your Oldest Account. ...
- Diversify the Types of Credit You Have. ...
- Limit New Credit Applications. ...
- Dispute Inaccurate Information on Your Credit Report. ...
- Become an Authorized User.
If you want to improve your credit quickly, the following strategies could help:
- Use a reputable credit repair service.
- Prioritize and pay outstanding debt.
- Explore secured credit cards.
- Become an authorized user.
- Develop a budget and stick to it.
Here are some significant steps you can take to improve your credit score, starting today.
- Repeat after us: No more late payments.
- Pay off revolving debt ASAP.
- Ask for a credit limit increase or apply for a new credit card.
- Review your credit report.
- Keep old credit cards open, even if you don't use them.
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.
Why did my credit score go from 524 to 0? ›
Credit scores can drop due to a variety of reasons, including late or missed payments, changes to your credit utilization rate, a change in your credit mix, closing older accounts (which may shorten your length of credit history overall), or applying for new credit accounts.
Is 507 a good credit score? ›
A 507 FICO® Score is significantly below the average credit score. Many lenders choose not to do business with borrowers whose scores fall in the Very Poor range, on grounds they have unfavorable credit.
Can I buy a house with a 619 credit score? ›
It's recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won't be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly mortgage payments.
It's highly unlikely you'll qualify for a conventional mortgage with your credit score. The lending standards of both Fannie Mae and Freddie Mac require a minimum credit score of 620, and even this level requires a strong debt-to-income ratio and a rather large down payment.
How to get a 900 credit score? ›
A credit score of 900 is not possible, but older scoring models that are no longer used once went up to 900 or higher. The highest possible credit score you can get now is 850.
How long does it take to fix bad credit? ›
It may take a few months to recover from a hard inquiry, a few months (or years) to recover from a 30-day late payment, and much longer to recover from a 90-day late payment or other major negative mark (such as a foreclosure).
What credit score is needed to buy a house? ›
The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).
How fast does credit score go up after paying off a credit card? ›
How long after paying off debt will my credit scores change? The three nationwide CRAs generally receive new information from your creditors and lenders every 30 to 45 days. If you've recently paid off a debt, it may take more than a month to see any changes in your credit scores.
How long does it take for credit score to recover from credit check? ›
A hard inquiry stays on your credit report for two years but typically won't affect your score for more than a year.
How quickly can you improve a bad credit score? ›
Depending on your unique financial situation, it can take anywhere from one month to a few years to improve your credit score. Improving your credit score isn't something you can achieve overnight, but don't let that dishearten you. Every credit score can be improved with a little commitment and perseverance.
Can you recover from a 500 credit score? ›
The bad news about your FICO® Score of 500 is that it's well below the average credit score of 714. The good news is that there's plenty of opportunity to increase your score. 99% of consumers have FICO® Scores higher than 500. A smart way to begin building up a credit score is to obtain your FICO® Score.
Can you fix a ruined credit score? ›
There is no quick way to fix a credit score.
The best advice for rebuilding credit is to manage it responsibly over time. If you haven't done that, then you'll need to repair your credit history before you see your credit score improve.
