How Long Does It Take To Repair Credit?

How Long Should It Take to Fix Credit?

If you are a bad credit holder, then you know that life can be tough with such a status. You may fail to be approved for loans, mortgages, credit cards, and apartments to mention but a few. The good news is that credit can be rebuilt and fixed, but that is not an overnight process. Well then, how long does it take to repair credit? The answer to what kind of products would benefit depends on several factors.

What's Considered Good Credit?

It is good to know what a good credit score entails before examining the procedures for restoring credit. They vary from 300 to 850 points. Generally:

A very good score is anything above 740.
To be precise, the scores ranging from 670 to 739 are considered good.
Scores ranging from 580 to 669 are considered fair.
A credit score below 580 is considered to be a bad credit score.

Therefore to repair credit what you are striving to do is to lift your score to one of the better categories. Still, fifty point increase can be decisive.

Elements that Define Credit Restoration Durations

Several key factors come into play when estimating how long credit repair takes.

Your current credit standings – The lower your baseline credit score, the more work will be required to elevate it. If your credit score is below 580 and you are in the process of rebuilding credit, it will take significantly longer than if you begin with a fair or good credit score.
A brief on why your credit is low – If you have things like late payments, collections accounts, bankruptcies, or other things pulling your score down, it will take some time to reverse it. Two important strategies are set to be adopted which include the reduction of debts and allowing the effects of past misdeeds to reduce with time.
Length of credit history – it is always wise to have a long credit history to show lenders that one is capable of handling credit facilities responsibly. Less history means that rating models in the insurance industry have less data to analyze in the process of determining risk. The scores of respective subjects should also increase progressively as a function of history accumulated month by month.
Your credit mix - Credit scoring models like to see you managing different types of credit – credit cards which are revolving credit, installment-loan credit like auto loans or student loans, mortgages, etc. The positive impact on your mix of accounts will positively enhance your scores.
The number and type of negative items that require fixing – Any delayed payment, collection accounts, repossessions, and records will take time to reduce or eliminate. If you have many mistakes on your report that need fixing, it will take a longer time to rebuild the credit than if you only need to establish a timely payment history in the future.
Your future credit behavior – New credit behavior is one of the most critical factors affecting the repair timeline. Paying all amounts on all accounts on the due dates every month should help increase the scores by a considerable margin within a year. However, failure to meet payment obligations after beginning the credit repair process can hamper the process.

The time it takes to see improvements

Given all these factors, here are some estimates for how long it may take to see meaningful improvements in your credit based on where you're starting.

Beginning at Poor Credit Score Bracket (Below 580)

6 months: Lesser changes of between 10 and 50 points
1 year: Additions cumulative to a total of one hundred points if there were no skipped payments.
2 years: Large gains of up to 200 or more

People with credit scores below 580 are likely to have numerous accounts in collection and public records to address. Just allowing those to recede even further into the past will assist in increasing scores in the long run. If you also emphasize the point of fixing credit with new good accounts, then you may experience higher improvements in 1 to 2 years.

Further Beginning Fair Credit Score Bucket (580 to 669)

6 months: Potential improvements of between 50 and 75 points
1 year: These increases amounted to 100 to 150 points
2 years: Such a gain amounts to 250 points or more

Even with fair credit, there may still be some negative items pulling your credit score down. But positive habits can counter those in the long run. Maintain your accounts open and healthy and you will graduate into good credit score brackets in 1 to 2 years.

Beginning in a good credit range of 670 or higher.

6 months: Some possibility of getting 25 to 50 points.
1 year: May increase up to 100 points
2 years: May limit credit rebuilding capability

If you have a good credit starting point, you probably have good payment histories reported across your accounts. This is the stage that marks the creation of a good credit base. Continue on the same path to maintain the yearly score increases of 25-100 points.

Ways to Rebuild Credit Fast

It requires effort to rebuild credit and rebuild credit scores which may take several years. But here are tips that can speed up your credit repair journey regardless of your starting point.

Check the credit reports periodically to see if there are any unfavorable items affecting the scores. Erasing the inaccuracies offers the familiar momentary lift.
Pay all the credit bills on time every month – for credit accounts and other monthly expenses that may not be reported to the credit bureaus like rent, utilities, etc As a result, credit reporting agencies see positive payment behavior that boosts scores.
Reduce credit card and revolving credit balances to ensure the credit utilization ratio is below 30%. This can go a long way to raising credit scores because it reduces the perceived riskiness of the borrower.
Rebuild, and add in new positive credit accounts cautiously – a new credit card account, or installment loan account with good payment references, boosts rebuilding credit files without sound accounts quickly.
To monitor your rebuilding process and see changes that affect it positively or negatively, sign up for credit monitoring. Being aware is useful because it allows one to take action when the need arises.

The Takeaway

Bad credit is something that complicates life and makes things a lot more costly. Fixing credit to be able to have a good credit rating requires attention and time to build it. Here are the goals that you should set for your credit repair depending on your current status: A lot of positive changes can be achieved within a period of one to two years if one is religious in paying his/her Credit Accounts diligently. Maintain good habits for the long term to ensure that the scores are as high as possible so that credit can be on your side.

Ready to boost your credit score? Call +1 888-804-0104 now for the best credit repair services near you! Our expert team is here to help you achieve financial freedom and improve your credit. Don't wait—get started today!