How Quickly Can I Repair My Credit Score?

A good credit score is valuable when applying for loans, credit cards, mortgages, rental applications, and sometimes employment. This is because if you have a poor credit score, you will be charged high interest rates or even rejected credit. Of course, you may be intrigued to learn how long it will take before your credit rating is boosted. Here’s what to expect.

How do Credit Scores work?

Before delving into how long it will take to rebuild credit, it is essential to know what contributes to credit score. FICO credit scores are the common credit scores with the lowest possible score being 300 and the highest being 850. In general, any score of 700 or more is considered good while any score above 750 is considered to be excellent.

FICO score is derived from your credit reports from the three major consumer credit reporting agencies; Experian, TransUnion, and Equifax. Five main factors contribute to your score.

• Credit use and loans: Your total credit card debt determines ten percent of your score. For seven years, late payments on your credit records will be shown by the credit bureaus.
  
• Thirty percent of credit relies on the amount of the credit limit you have accessible and available. You should preserve more than thirty percent of your whole credit limit to avoid compromising your score.
  
• Based on your credit history, 15% determines the duration of your credit history. A good credit history improves its length.
  
• Payment history: Ten percent depends on your credit card, installment credit, and mortgage credit status—that is if you have many credits. Your score will be better the more different the indices used to evaluate it are.
  
• Ten percent refers to any new credit accounts a person has taken advantage of as well as credit queries conducted. This implies that your credit score will suffer from too many new accounts or queries.
  

The two most significant components based on the percentages are your payment history and the amount of debt you have. Performance in those areas is crucial when it comes to credit repair.

How Long It Takes to Build Credit

Now, when we consider credit repair timelines, it is said that it may take at least six months to experience a positive shift in credit score. However, depending on the level of credit score you have to begin with, it will take some time to enhance the score.

If one has a fair credit rating, which ranges in the low 600s, it is quite possible that the score can be bumped up 100 points or even more within a year to 18 months, as long as certain credit management strategies are followed. This will get you into the good to excellent credit range which means better financial opportunities available.

On the other hand, if you have a very low credit score in the 500s or lower, you may hardly see an improvement in your scores for at least two years. To clear one’s credit history and become positive, pay off debts from such problems, and prove that one is good at handling credit, time is needed. However, when one is determined to work on his or her credit score, significant progress can be accomplished.

The following are the tips that could help fix credit fast;

Although the process of credit repair may be slow, here are some ways to help you speed up the process of credit score enhancement. Recommended tips include:

• Ensure that you meet all your financial obligations on time from now onwards – Make arrangements with your bank or with your creditors to make the payments automatically. This means that being 30 days late can cost you up to 110 points on your credit score.
• Reduce credit card utilization – Ensure balances are below 30 percent of credit limits on cards, the level that affects scores. Avoid carrying a balance on credit/charge cards if at all possible.
• Do not apply for new credit – New credits should only be sought when necessary when trying to rebuild credit because the more applications one makes, the lower the credit score is likely to be.
• Discrepancies – If there are accounts that are not only familiar to you but also not yours or even balances that do not belong to you at all, it is time to dispute. Correcting mistakes can help you raise your score.
• Look at credit repair companies – With the help of reliable credit repair companies, you can have errors in the reports removed and receive recommendations on proper profile management. Companies should be researched before the person signs up to work for them.

Other ways to improve your credit reports include the following; Including more positive information to the credit reports. You may request a new credit card, auto loan, or secured loan and make timely and regular payments. But again, ensure that you do not borrow too much in the process of trying to achieve all those feats. This way, checking your credit reports frequently allows you to track your progress.

Be Patient Yet Proactive

The length of time it takes to repair credit also differs from one person to another depending on their financial status. However, if you maintain sound credit management practices – pay all the bills on time, reduce the outstanding debts, and correct any errors – you will notice improvement. Though it may require some effort and time, it is quite possible to repair credit scores of 700 or even higher in most cases within a couple of years. Keep on pushing and never give up, you will eventually get to where you want to go.

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!