Rebuilding your credit from a low score can definitely seem overwhelming. The silver lining is that, with a bit of patience and consistent effort, you really can improve your credit over time. How long it takes to see a difference can vary: It really depends on where your score stands right now, what’s dragging it down, and how quickly you’re willing to adopt some positive habits.
If you’re wondering how fast you can boost your credit score, let’s break it down together.
Understanding how credit scores work
Let's start from scratch. It’s important to understand what makes up your credit score. Credit scores are calculated based on these key factors:
- Payment history: Your record of on-time or late payments (35% of your score)
- Credit utilization: The amount of credit you’re using compared to your total available credit (30% of your score)
- Length of credit history: How long your accounts have been open (15% of your score)
- Credit mix: A combination of credit types, like credit cards and loans (10% of your score)
- New credit inquiries: Applications for new credit accounts (10% of your score)
You’ll need to focus on these elements to start rebuilding your score step by step.
What do credit score numbers mean?
Credit scores range from 300 to 850, and lenders categorize them into different levels:
- 300–579 (Poor): Indicates significant credit issues; approval for credit is challenging
- 580–669 (Fair): Shows some credit problems, but lenders may approve credit with higher interest rates
- 670–739 (Good): Reflects responsible credit management; many lenders offer favorable terms
- 740–799 (Very good): Demonstrates strong credit habits; lenders are likely to offer the best rates
- 800–850 (Exceptional): Indicates excellent credit; access to premium credit offers and the lowest rates
Understanding where your score falls can help you set realistic goals and prioritize your efforts to move into a higher category.
Read this next: Why Is Having Good Credit Important? 8 Benefits to Keep in Mind
How long does it take to rebuild credit?
Recovering from bad credit depends on the depth of the damage, but progress starts as soon as positive steps are taken. For someone with a bankruptcy or foreclosure, recovery can span five to seven years due to how long these remain on a credit report. However, improvement can be seen in six to 12 months if corrective actions are consistent for someone with late payments or high credit utilization.
A quicker route includes focusing on recent delinquencies, negotiating payment plans or settlements first, and ensuring all future payments are made on time. Every on-time payment adds weight to your recovery narrative.
Here's a general guide to how long a recovery will take, based on your credit circumstances:
- Short-term recovery: Here, you recover from bad credit within three to six months. “Minor issues such as missed payments or small collections can improve quickly if you exercise strict financial discipline and consistently make your payments on time and reduce your debt,” says Anna Yen, a chartered financial analyst (CFA) at MoneyLion.
- Medium-term recovery: In this case, the recovery period can vary from six months to around two years. “It concerns a drop in credit ratings because of significant issues like charge-offs or larger collections,” Yen says. “So, it takes time to get your finances back on track. It may take several months to even a couple of years to see substantial improvement.”
- Long-term recovery: Severe issues like write-offs, bankruptcy, compromise settlements, or multiple delinquencies can bring down your rating significantly. These events remain in your credit report for many years. “It requires you to exercise excellent financial discipline and consistent and responsible credit behavior to recover fully,” she says.
Is it hard to rebuild bad credit?
Rebuilding bad credit isn’t easy, but it’s far from impossible. It requires dedication and the ability to stick to a plan, even when progress feels slow. Here's Yen's advice:
- Pay your bills on time. Timely payments are the most critical factor in improving your credit score.
- Reduce your overall outstanding debt as much as possible to lower your credit utilization ratio.
- Check your credit reports regularly for errors and fraudulent entries, and dispute inaccuracies immediately.
- Try using a secured credit card, where you pay a deposit to get a credit card. This facility is fully secured and can help rebuild your credit rating if used responsibly.
- Consider leveraging your spouse’s good credit rating to improve yours. You can start by being added to their credit card account, especially if they have an excellent payment history.
- Take out credit-building loans that are designed to help you build your credit ratio through regular, timely payments.
The more intentional you are about your financial habits, the easier it becomes to rebuild your credit over time.
How fast can credit score go back up?
Quick fixes aren’t realistic, but your score can improve within a few months if you focus on these key areas:
- Correct errors on your credit report. Disputing inaccuracies can yield improvements in a few weeks.
- Reduce credit utilization. Paying down high balances can lead to noticeable score increases within one or two billing cycles.
- Add positive accounts. Secured credit cards or becoming an authorized user can help establish positive credit activity.
Let’s break this down further based on where your score currently stands:
With bad credit
If your credit is in rough shape, start small. Focus on the basics: pay your bills on time and avoid taking on new debt. Consider opening a secured credit card or becoming an authorized user on someone else’s account to begin building a positive history.
From 400
A credit score of around 400 can feel intimidating, but it’s not permanent. Begin by addressing the root causes: Are there missed payments or collections accounts? Work with creditors to set up payment plans and start showing consistent progress.
From 500
At 500, you’re on the move. In addition to paying down balances, avoid hard credit inquiries by resisting the urge to apply for new accounts unless necessary. Keep building positive habits, and your score will improve.
From 600
If you’re in the 600s, you’re so close to reaching “good” credit. Keep doing what you’re doing, but also consider diversifying your credit mix if possible. For example, if you don’t have an installment loan—such as a car loan or personal loan with fixed monthly payments over a set period—adding one responsibly can help.
Rebuild that credit
Rebuilding your credit may seem overwhelming, but it’s absolutely possible with the right strategy and a little patience. Start by understanding the factors that influence your credit score, address the areas causing the most damage, and focus on building positive habits. Remember, your credit score doesn’t define you—it’s just a number that reflects your current financial habits.
With consistent effort, even the most challenging credit situations can improve over time. Stick to your plan, celebrate small wins, and don’t hesitate to seek help if needed. Before you know it, you’ll be on the path to stronger credit and greater financial opportunities.
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FAQs
How long does it take to go from 500 to 700 credit score?
Moving from a 500 to 700 credit score can take anywhere from six months to a few years, depending on the steps you take. Paying bills on time, reducing credit card balances, and avoiding new debt can accelerate your progress. For faster results, correct errors on your credit report and consider tools like secured credit cards to build positive credit history.
How to get a 720 credit score in six months?
Reaching a 720 score in six months requires disciplined financial habits. Start by paying down high balances to reduce your credit utilization below 30%, and make sure all bills are paid on time. Adding a secured credit card or becoming an authorized user on a trusted account can also boost your score quickly. Avoid new hard inquiries during this time to maintain your upward momentum.
Does it take seven years to rebuild bad credit?
It doesn’t necessarily take seven years to rebuild credit, but some negative items—like late payments, collections, or bankruptcies—can remain on your report for that long. The good news is their impact diminishes over time. By consistently practicing good credit habits, you can significantly improve your score within 12 to 24 months.
Is 650 a good credit score?
A 650 credit score is considered “fair.” While it’s not in the “good” range (usually 700 or higher), it’s a solid starting point for improvement. With steady efforts like paying bills on time and reducing debt, you can move into the good range relatively quickly, often within a year.
How to get a 700 credit score in 30 days?
Achieving a 700 credit score in just 30 days is challenging but not impossible if your score is close to this range. Start by paying off as much credit card debt as possible to lower your utilization. Correct any errors on your credit report, and consider requesting a higher credit limit from your creditors to reduce your utilization ratio.
How do I repair my credit score quickly?
Credit score improvement varies based on your starting point and actions. Minor changes, like paying down balances, can show results in one to two billing cycles. So, how quickly can you rebuild your credit score? Significant improvements from more severe issues may take several months to a year. The key is consistency and patience. “Quickly” is relative. Taking these steps can yield noticeable results in just a few months.